Gujarat State Fertilizers & Chemicals Limited (GSFC) share price

₹146.50 on NSE as of 2026-10-08. -2.16% on the day. market cap ₹5,838 Cr. P/E 8.4. 52-week range ₹139.22 to ₹199.43. Chemicals.

www.gsfclimited.com

What the company does

Incorporated in t962, GSFC is a public sector undertaking promoted the Govemment of Gujarat (GoG). GoG, through itsby undertaking, Gujarat State Investment Ltd (GSIL), owns 37.g4olo of paid-up capital of the company. The chairman andthemanaging director of the company are appointed by GoG. GSFC operates in two segments : (i) fertilizers and (ii) industrial products, with integrated manufacturing facilities enabling it tobenefit from synergies by manufacturing a host of fertilizers and industrial products. Fertilizers contribute around 60-700lo to theTOI, whereas industrial products contribute a balance of 30400/o. GSFC manufactures fertilizers like DAp, AS, ApS and urea, andindustrial products like melamine, MEK oxime, and among others. A: Audited; UA: Unaudited; NA: Not available. Financials are classified as per CARE Ratings, standards.

Filed by CARE Ratings, page 5.

Gujarat State Fertilizers & Chemicals Q1 FY27: Revenue Up 64% to ₹3,583 Cr, Sulphur Up 231%, and a $816 Caprolactam Spread

At a glance

Gujarat State Fertilizers & Chemicals sells plant nutrients and the chemicals from which nylon is made. Between April and June 2026 it sold more fertiliser than in any earlier first quarter. Consolidated revenue reached ₹3,583 crore, up 64% from a year earlier. The same quarter of the previous year had brought in ₹2,184 crore. Operating profit rose by 20.6% to ₹232.7 crore. Profit after tax rose by 14.4% to ₹158.5 crore. Revenue sprinted, and profit came along behind it at a walk.

The distance between those two growth rates sits in the cost sheet. Management lists sulphur up 231% from a year earlier and ammonia up 144%. It also reports natural gas up 38% and P2O5, a phosphate input, up 30%. Management reports that the fertiliser segment's EBIT margin fell from 8.49% to 4.09%. EBIT margin measures operating profit against sales. A 231% price rise is the sort of figure most households mention only in a whisper, beside the electricity bill.

The Industrial Products segment had the opposite kind of quarter. Its segment result rose from ₹24.7 crore to ₹115.9 crore. Management attributes that to higher caprolactam sales and a wider Capro-Benzene spread. Caprolactam is the chemical from which nylon-6 is made. That spread, the gap between the caprolactam and benzene prices, widened from $540 to $816 per tonne. The nylon business earned nearly as much over the quarter as the fertiliser business did.

Fertiliser sales volume for the quarter was 5.26 lakh tonnes, 17% higher than a year earlier.

Introduction

GSFC was incorporated in 1962 and is promoted by the Government of Gujarat. It makes fertiliser for farmers and industrial chemicals, including the ingredients of nylon. The state holds a 37.84% stake through Gujarat State Investments Ltd. According to CARE Ratings, a credit-rating agency, the state also appoints the chairman and the managing director. The registered address is Fertilizernagar in Vadodara, a place named after the product itself. That is a level of brand commitment most marketing departments can only dream about. The 64th annual general meeting is dated 28 September 2026, which adds up to a great many printed notices of book closure.

The consolidated entity takes in three subsidiaries: GSFC Agrotech, Gujarat Port & Logistics and Vadodara Jal Sanchay. Three associates sit alongside them: Gujarat Green Revolution Company, Vadodara Enviro Channel and Karnalyte Resources. Karnalyte is a Canadian potash developer in which GSFC held 47.73% as of March 2025. A Vadodara fertiliser company with a Canadian potash associate is the corporate version of a joint family with one cousin abroad. The arrangement is a 20-year offtake agreement for about 3.5 lakh tonnes of potash a year.

The past ten months have brought a new cast list. Manoj Kumar Das became chairman with effect from 1 November 2025. Dr Rajender Kumar became managing director on 3 January 2026. Sanjeev Kumar had resigned from that post the previous day. A new sulphuric acid plant started commercial production on 7 January 2026. In June 2026 the Government of Gujarat approved a revision to the holding in Gujarat Port & Logistics. Under it, the stake held by GSFC falls from 60% to 11%.

CARE Ratings reaffirmed the company's long-term rating at CARE AA+ (Stable) on 3 October 2025. The same agency reaffirmed the short-term rating at CARE A1+ on that date.

Business model

GSFC makes two very different kinds of thing: food for crops, and ingredients for nylon.

On the fertiliser side it manufactures DAP, a phosphate fertiliser, along with ammonium sulphate and ammonium phosphate sulphate. It also manufactures urea and NPK grades, which carry nitrogen, phosphorus and potassium. Separately it trades DAP, urea and ammonia. Some of what it sells arrives by ship and leaves by truck without ever visiting a reactor. In the June quarter manufactured fertiliser sales were 3.53 lakh tonnes. Traded phosphatic and potassic fertilisers came to 1.31 lakh tonnes and traded urea to 0.42 lakh tonnes.

The industrial side makes caprolactam, nylon-6 and melamine. It also makes MEK oxime, HX crystal and methanol. Per CARE Ratings, GSFC is India's only domestic melamine manufacturer. The same agency calls it the largest domestic maker of caprolactam and nylon-6. Being the only domestic melamine maker is a monopoly in the sense that bringing the only guitar to a party is. The imports are standing right there.

The plant is built like a Russian doll. GSFC makes part of its own ammonia, phosphoric acid and sulphuric acid, and its captive caprolactam feeds its own nylon-6 line. Management told analysts that the four sulphuric acid plants keep running even when sulphur prices are high. Management says they produce process steam, which would otherwise have to come from natural gas. Some acid, on that account, is made partly for the heating it throws off.

Power follows the same do-it-yourself logic. Per CARE, the company has 152.80 MW of wind capacity and 65.13 MW of solar. It also runs a 30 MW captive gas plant and draws 38 MW from GIPCL's gas-based plant. Captive wind and solar met about 40% of electricity consumption in the year to March 2025.

Raw-material security runs through overseas stakes. A 15% holding in Tunisian Indian Fertilizers entitles GSFC to 1,80,000 tonnes of phosphoric acid a year. It received 17,510 tonnes in the year to March 2025. That came to about 9.7% of the entitlement, and the remainder went unfilled.

Quarterly results, balance sheet, cash flow, ratios, shareholding and the filings themselves are on the full page for Gujarat State Fertilizers & Chemicals Limited.

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