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Earnings Call Transcript

Gujarat Narmada Valley Fertilizers & Chemicals Earnings Call Transcript: Key Takeaways

GNFC reported its second-highest ever Q1 profit despite global volatility, driven by strong chemical realizations while fertilizer margins deteriorated due to urea energy norm revisions.

Highlights
Revenue growthVolumes down significantly despite high production; profit driven by realizations.
MarginsChemicals strong; Fertilizer margins hit by urea energy norm changes.
Demand visibilityMixed; inventory liquidation noted in July and August.
Management confidenceBalanced, highlighting operational efficiency despite external geopolitical and cost pressures.

Growth

Profit growth is realization-led as sales volumes declined significantly compared to production volumes.

Outlook

Ongoing ₹2,800 Cr capex expected to add ₹1,200-1,500 Cr revenue and ₹500-600 Cr EBITDA.

Risks

Global gas price volatility and fertilizer segment losses of ₹85 Cr are major headwinds.

Last quarter's promises, checked

Delivered

  • Dividend payout 210% → delivered INR 21 per share (= BEAT)
  • TGU production doubling in March → delivered >210,000 MT for FY26 (= BEAT)
  • Ammonia expansion/Nitric acid track → delivered on track for FY27/28 (= BEAT)

Partly delivered

  • Weak Nitric Acid project timeline → delivered 2.5 months delay (= PARTIAL)

Missed

  • Coal-based CCPP start April 2026 → delivered synchronization delayed to June 2026 (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: GNFC. Summary written with AI assistance from the document.

Read the document ↗

Gujarat Narmada Valley Fertilizers & Chemicals Ltd: key numbers

Share price
₹630.30
Market cap
₹9,262 Cr
Revenue (annual)
₹7,773 Cr
Net profit (annual)
₹808.6 Cr
P/E (TTM)
8.9×Sector 12.4×
Promoter holding
41.30%+0.00% QoQ
FII holding
13.11%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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