State-run fertiliser firm Gujarat State Fertilisers and Chemicals Ltd (GSFC) reported a solid first quarter on Thursday (August 7), posting a 58.6% jump in net profit at ₹138.5 crore, up from ₹87.3 crore in Q1FY25.
Revenue from operations was up 1% to ₹2,184 crore against ₹2,163 crore in the prior year quarter.
At the operating level, EBITDA jumped 75.6% to ₹193.6 crore over ₹110 crore year-on-year. The EBITDA margin improved to 8.9% over 5.1% last year.
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In the first quarter, the company reported an increase in earnings before interest and tax (EBIT) from its fertiliser segment, which rose from ₹86 crore to ₹137 crore.
This growth was driven by higher trading activity — particularly in complex fertilisers like nitrogen, phosphorus, and potassium (NPK) grades — along with strong sales of ammonium phosphate sulphate (APS) and ammonium sulphate (AS). The company also benefited from improved realisations in phosphatic and potassic (P&K) fertilisers.
However, urea sales declined sharply by 73%, primarily due to the exclusion of ₹149 crore in project-linked trial sales recorded in the previous year, and ongoing stabilisation issues affecting production.
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Raw material trends during the quarter were mixed. Prices of natural gas (NG) and ammonia softened, which could offer some cost relief. On the other hand, prices of phosphorus pentoxide (Pâ‚‚Oâ‚…) and sulphur or sulphuric acid (SA acid) witnessed sharp increases, putting pressure on input costs.
The industrial products segment turned profitable during the quarter, reporting an EBIT of ₹25 crore. This turnaround was supported by stronger sales of ammonia and hexamethylene tetramine (HX), despite challenges from lower product spreads and a decline in core volumes.
The results came after the close of the market hours. Shares of Gujarat State Fertilizers & Chemicals Ltd ended at ₹198.80, down by ₹4.50 or 2.21%, on the BSE today (August 7).
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