India · Delayed Price · Currency is INR Gujarat State Fertilizers & Chemicals Earnings Call Transcripts
Fiscal Year 2027
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Q2 sales grew strongly, but fertilizer cost inflation cut profits and compressed segment EBIT. H2 prospects hinge on subsidy rates; a INR 3,000 crore Sikka project and solar savings support the outlook.
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Q1 sales rose 64% YoY, while fertilizer input inflation compressed segment margins. Industrial products strengthened, and FY27 fertilizer sales are budgeted above 22 lakh metric tons; projects at Sikka and Dahej remain central to growth.
Fiscal Year 2026
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FY26 sales, EBITDA and fertilizer volumes grew, while Q4 fertilizer sales set a record. Input volatility remains elevated; subsidy support, inventory and stronger IP profitability underpin near-term operations.
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Q3 production and earnings improved, but fertilizer margins faced steep input-cost inflation. SA-V commissioning, urea efficiency and stronger chemical exports are expected to support future performance.
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Q2 revenue rose 21% YoY and PAT 9%, led by fertilizer sales and a turnaround in industrial products. Raw-material inflation pressured fertilizer EBIT; rabi demand is expected to remain healthy, with Sulphuric Acid V commissioning ahead.
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Consolidated Q1 revenue rose 1% YoY, while PBT and PAT increased 63% and 59%. Fertilizer EBIT improved, but acid-cost inflation and subsidy decisions remain key margin variables.
Fiscal Year 2025
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FY25 revenue and profit increased, supported by stronger fertilizer volumes and product mix despite cost and spread pressures. FY26 fertilizer sales and margins are expected to benefit from policy support, while capex and volatile input markets remain key considerations.
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Q3 revenue growth and higher fertilizer volumes lifted consolidated profit, despite input-cost, subsidy and industrial-spread pressures. Q4 fertilizer sales target is 3–3.25 lakh metric tons; major efficiency and energy projects are nearing completion.
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Q2 PAT reached a record INR 303 crore and operating margins improved despite lower turnover and falling fertilizer subsidies. Rising input costs and import competition remain key pressures, while Q3 fertilizer volumes and new capacity support the outlook.
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Q1 PBT rose to INR 118 crore and PAT to INR 93 crore as fertilizer volumes climbed 30% YoY, though margins remained pressured. Industrial Products reported a INR 4 crore loss amid weak chemical spreads and Chinese imports.
Fiscal Year 2024
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FY24 was pressured by lower subsidies, shipping delays and weak industrial margins. FY25 targets 20% fertilizer volume growth and higher revenue and PBT, while subsidy policy and input costs remain key swing factors.
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Subsidy cuts and sticky input costs pressured fertilizer revenue and earnings, while fertilizer volumes grew 14% in 9M. Management expects volume growth and some Q4 input-cost relief, but significant margin recovery depends on subsidy changes.
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Q2 sales hit a record INR 3,000 crore, with fertilizer volumes up 52% YoY. Lower subsidies and rising input costs are expected to weigh on Q3 margins, while management hopes for improvement in Q4.
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Q1 turnover was ₹2,062 crore, with margins pressured by a ₹120–125 crore one-time subsidy and inventory impact. FY24 fertilizer volume growth of 15%–20% and turnover near last year's ₹11,368 crore are expected, while record FY23 profit is not.