GNFC's Profit Momentum Stalls Despite Strong Revenue Growth
The fertilizer and chemicals maker posted a 40% YoY revenue surge, but profit fell 21% sequentially from the previous quarter.
GNFC's Q1 FY27 results show a mixed picture. While revenue jumped significantly year-on-year, profit declined quarter-on-quarter, indicating a potential squeeze on margins.
Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) delivered a quarter of powerful top-line growth but a sequential dip in profitability. Revenue for Q1 FY27 surged nearly 40% compared to the same period last year, yet profit fell over 20% from the preceding quarter, highlighting a shift in earnings momentum.
The company's quarterly performance over the last year shows a clear trajectory of recovery and recent pressure.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period | Jun 2026 | Mar 2026 | Jun 2025 |
| Revenue (₹ Cr) | 2,238YoY +40% | 2,208 | 1,601 |
| Profit (₹ Cr) | 310YoY +297% | 392 | 78 |
| Net Profit Margin (%) | 13.9YoY +184% | 17.8 | 4.9 |
Year-on-year, the improvement is stark. Profit skyrocketed by 297%, and the net profit margin expanded by 900 basis points to 13.9%. However, compared to the strong Q4 FY26, both profit and the net profit margin have softened. The trailing twelve-month (TTM) net profit margin stands at 12.2%, suggesting the latest quarter's margin is still above the recent average.
Key Points
- The company maintains a fortress balance sheet with negligible debt, reflected in a debt-to-equity ratio of just 0.01.
- GNFC's stock has traded flat over the past year and is valued at a significant discount to its industry, with a P/E of 12.2 versus an industry average of 38.7.
The key question for GNFC is whether the Q1 margin decline is a temporary correction or a sign of rising cost pressures that could challenge its impressive year-on-year profit recovery.
Live Chart
· GNFC
(BSE)
ISIN: INE113A01013
Also read
Want this applied to your portfolio?
Talk to a HexaWealth advisor, or sync your mutual fund data for insights tailored to your holdings.