Gujarat Narmada Valley Fertilizers Q2 profit surges 70%, margins nearly double

Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC) reported a robust 70.4% year-on-year jump in net profit to ₹179 crore for Q2FY26, compared to ₹105 crore in the same period last year.

The company's revenue rose 2.7% to ₹1,968 crore, supported by improved sales volumes and cost efficiency.

EBITDA nearly doubled to ₹185 crore from ₹90 crore, with margins expanding to 9.4% from 4.7% a year ago.

GNFC Managing Director Dr T Natarajan attributed the strong performance to better sales and a decline

in input costs, noting that Q1 results were impacted by an annual maintenance shutdown.

The company expects improved competitiveness following the government’s revised nutrient-based subsidy rates for the Rabi season and an extension of anti-dumping duty on TDI imports until March 2026.

According to the exchange filing, GNFC is also pursuing revisions in energy and fixed costs, expected by the year-end, and has cleared a brownfield investment for an ammonium nitrate melt plant (163 KTPA), aligning with the upcoming WNA-III commissioning (weak nitric acid plant in Gujarat).

The company also stated that the operationalisation of its power plant in FY26 is expected to enhance cost efficiency at the Dahej TDI complex, further boosting margins.

The board has already approved a final dividend of ₹18 per equity share for FY25, aggregating to ₹264.49 crore, which was ratified at the AGM held on September 9, 2025.

Shares of the company ended higher by 5.02% at  ₹518.10 on the NSE today, November 12.

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