Gujarat State Fertilizers & Chemicals Ltd (GSFC)
🎯 Key Takeaways
- GSFC is in a consolidation and capital return phase following a period of margin volatility. After a sharp profit surge in Q3FY25 driven by favorable pricing and low input costs, the company has stabilized into a more predictable earnings profile with improving operational consistency.
- Revenue grew 36.1% QoQ to ₹3,583 in Q1FY27.
- ⚠️ Margin sensitivity to global urea and ammonia price volatility remains a concern, as seen in the sharp OPM decline in Q4FY2
📖 The Story
GSFC is in a consolidation and capital return phase following a period of margin volatility. After a sharp profit surge in Q3FY25 driven by favorable pricing and low input costs, the company has stabilized into a more predictable earnings profile with improving operational consistency. Management is prioritizing shareholder returns amid stable cash flows and a strong balance sheet, signaling confidence in sustained performance without aggressive reinvestment needs.
📰 What's Happening
In Q1FY26, GSFC reported revenue of ₹3,583 crore with operating profit of ₹179 crore (OPM 5%), reflecting a recovery from margin pressure seen in Q4FY26 (OPM 1.1%). The company conducted an investor call on August 13, 2026, to discuss these results, emphasizing operational discipline. A 64th AGM is scheduled for September 28, 2026, with e-voting closing on September 21, 2026, and dividend entitlement set for September 30, 2026. Dividend payment is scheduled on or after October 5, 2026, following approval at the AGM. This marks a continued focus on returning capital despite cyclical headwinds.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|
| Revenue | 2,184 | 3,187 | 2,941 | 2,633 | 3,583 |
| Operating Profit | 146 | 286 | 127 | 30 | 179 |
| OPM % | 6.7% | 9.0% | 4.3% | 1.1% | 5.0% |
| Net Profit | 139 | 324 | 158 | 52 | 159 |
| EPS | ₹3.48 | ₹8.13 | ₹3.97 | ₹1.30 | ₹3.98 |
Revenue has shown sequential improvement, rising from ₹2,184 crore in Jun 2025 to ₹3,583 crore in Jun 2026, with operating margins stabilizing around 5% after a peak of 9% in Sep 2025. Profitability dipped temporarily in Q4FY26 (OPM 1.1%) but rebounded strongly in Q1FY26, indicating resilience in core operations. Net profit of ₹159 crore in Q1FY26 reflects improved cost control and volume recovery, supporting EPS of ₹3.98. The trend suggests management has navigated input cost pressures while maintaining output stability, particularly in urea and ammonia segments.
🔮 Management Outlook & What's Next
During the August 13, 2026 investor call, management highlighted ongoing operational efficiency and a cautious but confident stance on demand trends in domestic fertilizer and industrial chemicals. While no formal long-term guidance was provided, they emphasized sustained focus on working capital management, margin protection, and disciplined capital allocation. The dividend policy remains anchored to cash flow generation, with payouts tied to AGM approval and record dates set for September 30, 2026.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 80 | 80 | 80 | 80 |
| Reserves | 13,340 | 12,059 | 12,385 | 12,187 |
| Borrowings | 101 | 0 | 1 | 27 |
| Total Liabilities | 15,888 | 14,369 | 13,134 | 14,390 |
| Fixed Assets | 2,498 | 2,504 | 2,870 | 3,327 |
| Investments | 6,697 | 5,055 | 5,135 | 4,610 |
| Total Assets | 15,888 | 14,369 | 13,134 | 14,390 |
The balance sheet shows stable equity of ₹80 crore and growing reserves, now at ₹12,187 crore as of March 2026, up from ₹12,059 crore a year earlier. Borrowings remain minimal at ₹27 crore (March 2026), down from ₹1 crore in prior periods, indicating strong deleveraging and low reliance on external financing. Total assets of ₹14,390 crore reflect consistent investment in operations without aggressive expansion, supporting financial flexibility and reinforcing the company’s low-debt profile.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 |
|---|---|
| Operating | +83 |
| Investing | -172 |
| Financing | -159 |
| Net Cash Flow | -247 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 37.8% | 37.8% | 37.8% | 37.8% |
| FII | 12.3% | 11.9% | 12.3% | 12.4% |
| DII | 7.8% | 7.3% | 7.3% | 7.3% |
| Public | 29.8% | 30.5% | 29.9% | 29.9% |
| # Shareholders | 3,13,329 | 3,09,604 | 3,03,830 | 2,98,987 |
Promoter holding remains steady at 37.84% across all recent quarters, signaling confidence and alignment with long-term strategy. FII ownership has slightly increased to 12.36% in Q1FY27 from 12.29% in Q2FY26, while DII shareholding has declined marginally to 7.33% from 7.82%. The number of public shareholders has decreased slightly, but total shareholder count remains high at 2,98,987. No significant dilution or pledging activity is evident, suggesting stable institutional interest with modest shifts in investor composition.
⚖️ Peer Comparison — Fertilizers
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| COROMANDEL | 56,782 | 30.9 | 21.0% | 14.2% | 0.07 |
| FACT | 52,685 | 1893.5 | 9.2% | 2.0% | 1.29 |
| CHAMBLFERT | 16,513 | 8.6 | 22.6% | 18.5% | 0.10 |
| PARADEEP | 16,356 | 15.3 | 14.5% | 15.8% | 1.01 |
| GSFC | 6,326 | 9.1 | 7.4% | 5.7% | 0.00 |
| RCF | 6,320 | 14.2 | 12.6% | 9.4% | 0.58 |
| NFL | 3,459 | 9.5 | 15.8% | 13.4% | 0.73 |
| SPIC | 1,403 | 6.8 | 16.0% | 17.1% | 0.60 |
| MADRASFERT | 1,046 | 14.7 | 9.5% | -219.7% | -49.36 |
| ZUARI | 971 | 1.0 | 50.7% | 52.5% | 0.34 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1. Margin sensitivity to global urea and ammonia price volatility remains a concern, as seen in the sharp OPM decline in Q4FY26. 2. Input cost pressures from natural gas and raw materials could impact profitability if not fully passed on. 3. Aging asset base in fertilizer manufacturing may require increasing capex for modernization, potentially affecting free cash flow. 4. Low ROE (5.7%) and ROCE (7.4%) indicate limited capital efficiency, which could constrain investor returns if performance plateaus.
📋 Recent Filings
-
🔴 Corporate Action 31 August 2026GSFC revised its record date for dividend entitlement from Friday 11th September 2026 to Saturday 12th September 2026, moving the payment timing accor...
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🔴 Corporate Action 31 August 2026GSFC revised its record date for dividend entitlement from 11th September 2026 to 12th September 2026, confirming the change for shareholders while al...
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🟡 Board Meeting 29 August 2026GSFC announced its 64th AGM on September 28, 2026, with book closure from September 14 to 28, 2026, to determine dividend eligibility. The record date...
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🔴 Corporate Action 29 August 2026GSFC announced a record date of 11 September 2026 to determine dividend entitlement following its AGM on 28 September 2026. The book closure runs from...
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🔴 Corporate Action 29 August 2026GSFC announced dividend payment on or after October 5, 2026 to shareholders listed on the September 30, 2026 record date following its AGM on Septembe...
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🟡 Board Meeting 29 August 2026Gujarat State Fertilizers & Chemicals announced its 64th AGM on Monday, 28th September 2026, with book closure from 14th to 28th September 2026. The r...
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🟡 Board Meeting 29 August 2026GSFC announced 21 September 2026 as the e-voting cut-off date for its 64th AGM scheduled on 28 September 2026, enabling shareholders to vote electroni...
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Announcement 18 August 2026GSFC reported a strong Q1 FY27 with consolidated sales rising 64% YoY to INR3,583 crores and PAT up 14% to INR159 crores, driven by record fertilizer ...
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🔴 Financial Results 13 August 2026GSFC announced an investor conference call on August 13, 2026, to discuss Q1 FY26 financial results, providing an audio link for stakeholders to revie...
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Announcement 12 August 2026Gujarat State Fertilizers & Chemicals reported Q1 FY26-27 results showing 82% YoY sales growth to Rs 2947 Cr in fertilizers and 15% growth to Rs 635 C...
🧠 Analyst's Read
GSFC is transitioning into a stable, cash-generative phase with a clear focus on dividends and capital efficiency. Investors should monitor margin trends in the next few quarters and the sustainability of volume growth in key segments. The upcoming AGM and dividend payment in October 2026 will be key near-term catalysts, but long-term appeal hinges on whether margins can recover amid competitive and input cost challenges.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-02.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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