GSFC's Q1 FY2026 Report: Sales Edge Up, But Profits Take a Deep Dive

Gujarat State Fertilizers and Chemicals (GSFC) has released its standalone financial results for the quarter ending June 2025, revealing a mixed bag for investors. While the company managed to post a modest increase in net sales, profitability metrics saw a notable decline, signaling potential challenges ahead.

During the first quarter of the fiscal year 2026, GSFC's standalone net sales stood at Rs 2171.65 crore.

This represents a slight but positive growth of 1.29% compared to the Rs 2143.91 crore reported in the same quarter last year, indicating a steady demand for its products.

However, the positive momentum in sales did not translate into better profits. The company's standalone net profit experienced a significant downturn, plummeting by 42.14% year-over-year to settle at Rs 157.94 crore.

This is a sharp drop from the Rs 273.06 crore net profit recorded in the June 2024 quarter, raising concerns about cost management or pricing pressures.

Further underscoring the profitability challenge, GSFC's Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) also fell considerably.

It decreased by 29.56% to Rs 287.97 crore, down from Rs 409.02 crore in the corresponding period last year. Consequently, the Earnings Per Share (EPS) followed suit, declining by 42.17% to Rs 3.96 from Rs 6.84, reflecting the reduced earnings available per share for investors.

Overall, GSFC's performance in the June 2025 quarter presents a nuanced picture.

The slight uptick in sales suggests resilience in its market position, but the substantial contraction in key profitability indicators like net profit, EBITDA, and EPS highlights areas that warrant closer examination from both the company and its stakeholders.