Gujarat State Fertilizers & Chemicals: Business Overview & Financial Analysis
Gujarat State Fertilizers & Chemicals (GSFC) is a major Indian public-sector chemical and fertilizer manufacturing enterprise headquartered in Vadodara, Gujarat. Promoted by the Government of Gujarat, the company manufactures, markets, and exports a wide range of complex fertilizers, industrial chemicals, synthetic fibers, and industrial gases. Operating integrated manufacturing complexes at Vadodara and Sikka, GSFC serves agricultural and industrial customer segments across domestic and global markets.
Segment & Business Revenue Breakdown of GSFC (Q1 FY2027)
GSFC structures its core operations across two primary reporting segments: Fertilisers and Industrial Products.
- Fertilisers Division Share – 70.8% of Total Revenue (Rs 1,326.80 crore)
- Industrial Products Division Share – 29.2% of Total Revenue (Rs 546.50 crore)
- Total Consolidated Revenue from Operations (Q1 FY2027) – Rs 1,873.30 crore (+8.4% YoY)
The Fertilisers segment serves as the main top-line engine, processing DAP, NPK, and Urea products. Industrial Products generate high-margin cash flows through sales of Caprolactam, Nylon-6, and Melamine to chemical and textile manufacturers.
Fertilizer & Industrial Product Portfolio of GSFC (FY2026)
The enterprise manufactures a broad portfolio of agricultural nutrients and specialized industrial chemical intermediates.
- Key Fertilizer Offerings – Urea, Diammonium Phosphate (DAP), Ammonium Sulphate (AS), and NPK variants
- Key Industrial Chemical Offerings – Caprolactam, Melamine, Nylon-6 Chips, Anhydrous Ammonia, Nitric Acid, and Cyclohexanone
- Brand Architecture – Promoted under the flagship brand name 'Sardar'
- Distribution Architecture – Distributed through a network of 250+ 'Sardar Kisan Seva Kendra' depots and thousands of dealers
Managing a comprehensive agricultural catalog under the 'Sardar' brand name supports deep retail penetration across rural markets. Captive consumption of industrial intermediates like Ammonia and Phosphoric Acid improves overall process integration.
Operating KPIs & Production Capacities of GSFC (Q1 FY2027)
GSFC tracks quarterly fertilizer production volumes, industrial capacity utilization rates, and raw material pricing cycles.
- Installed Fertilizer Capacity Base – ~1.85 million Metric Tonnes (MT) per annum
- Installed Industrial Chemical Capacity Base – ~0.35 million Metric Tonnes (MT) per annum
- Primary Manufacturing Locations – Fertilizernagar (Vadodara) and Sikka (Jamnagar)
- Captive Raw Material Integration Rate – 100% internal production of Ammonia for downstream fertilizers
Operating integrated complexes at Vadodara and Sikka ensures rapid order fulfillment across Western and Central India. High capacity utilization across fertilizer units insulates unit production costs during seasonal demand peaks.
Latest Quarterly Financial Performance of GSFC (Q1 FY2027)
GSFC recorded top-line operational turnover expansion during the first quarter of FY2027.
- Consolidated Revenue from Operations – Rs 1,873.30 crore (+8.4% YoY vs Rs 1,728.50 crore in Q1 FY2026)
- Consolidated Operating EBITDA – Rs 92.40 crore (-18.6% YoY vs Rs 113.50 crore in Q1 FY2026)
- Consolidated Operating EBITDA Margin – 4.93% (-163 bps YoY vs 6.56%)
- Consolidated Net Profit After Tax (PAT) – Rs 74.20 crore (-23.5% YoY vs Rs 97.00 crore in Q1 FY2026)
- Standalone Net Profit After Tax (PAT) – Rs 71.80 crore
First-quarter consolidated operating revenue expanded 8.4% year-on-year to Rs 1,873.30 crore, supported by steady volume off-take in complex fertilizers. Consolidated Net Profit After Tax reached Rs 74.20 crore, impacted by lower realization margins in industrial products.
Consolidated Annual Financial Performance of GSFC (FY2026)
The company achieved full-year turnover realisations and net cash generation during full financial year FY2026.
- Full Year Consolidated Revenue from Operations – Rs 8,920.40 crore
- Full Year Consolidated Operating EBITDA – Rs 612.80 crore
- Full Year Operating EBITDA Margin – 6.87%
- Full Year Consolidated Net Profit After Tax (PAT) – Rs 485.60 crore
- Return on Capital Employed (ROCE) Realisation – 8.50%
- Return on Equity (ROE) Realisation – 6.20%
Full-year operating turnover crossed Rs 8,900.00 crore in FY2026, as Net Profit After Tax reached Rs 485.60 crore. Stable operational cash flows supported ongoing plant maintenance and green energy transitions.
Balance Sheet Structure & Financial Health Ratios of GSFC (Q1 FY2027)
GSFC operates a debt-free financial structure backed by equity reserves, liquid investments, and Government of Gujarat promotion.
- Financial Debt Status – Zero Long-Term Debt / Net Cash Surplus
- Total Shareholder Equity Net Worth Base – ~Rs 12,200.00 crore
- Liquid Cash, Bank & Investment Treasury Reserves – ~Rs 3,400.00 crore
- Working Capital Conversion Cycle – 58 days
Operating a debt-free balance sheet backed by ~Rs 3,400.00 crore in treasury reserves provides strong balance sheet resilience. Substantial cash balances allow the company to fund large-scale modernisations without relying on debt financing.
Capex Outlay & Business Expansion Pipeline of GSFC (FY2027–FY2028)
The enterprise executes a multi-year capital expenditure plan to modernize aging chemical plants, set up solar power units, and expand production lines.
- Total Planned Multi-Year Capex Outlay – Rs 1,200.00 to Rs 1,500.00 crore
- Ammonium Sulphate Expansion Project Outlay – Setting up a new 1.32 lakh MTPA plant at Vadodara
- Sulphuric Acid Plant Project Target – Setting up a 1,000 MTPD Sulphuric Acid V plant
- Solar & Green Energy Capex Allocation – 15 MW solar power project commissioning at Charanka
- Funding Strategy – 100% funded through internal operational cash accruals
Capital expenditure outlays focus on expanding Ammonium Sulphate and Sulphuric Acid manufacturing capacity at Vadodara. Developing captive solar installations lowers grid energy expenses across chemical units.
Strategic Outlook & Management Commentary of GSFC (Q1 FY2027 Concall)
Management guidance outlines strategic priorities centered on volume acceleration, subsidy recovery, and plant modernization.
- Management targets maintaining a steady top-line revenue growth trajectory across full financial year FY2027.
- Fertilizer segment volume dispatches are expected to remain firm, supported by healthy monsoon rainfall across key states.
- Industrial product margins will gradually recover as raw material Benzene prices stabilize.
- Ammonium Sulphate and Sulphuric Acid capacity expansions are scheduled for commercial commissioning over upcoming quarters.
- Government subsidy receivables are being managed promptly, maintaining minimal working capital drag.
- Capital allocation strategy will prioritize self-funded plant modernisations while preserving a zero debt-free balance sheet.
Management anticipates strong agricultural demand to support full-year fertilizer throughput. Operational focus centers on commissioning new chemical plants, expanding solar energy sourcing, and preserving balance sheet health.
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Sources & References
- GSFC Q1 FY2027 Unaudited Financial Disclosures & Stock Exchange Outcomes
- GSFC Q1 FY2027 Investor Presentation & Performance Updates
- Stock Exchange Outcomes & BSE/NSE Filings for GSFC
- Ticker Finology GSFC Page
Disclaimer
The information presented above on GSFC has been compiled from the company's Annual Reports, Investor Presentations, Earnings Call (Concall) Transcripts, official regulatory filings and the financial data available on Finology Ticker. Certain figures, classifications or comparisons may vary due to differences in accounting policies, reporting methodologies or subsequent restatements by the company. This content is intended solely for informational purposes and should not be considered as investment advice. Investors are advised to refer to the latest company filings and the updated financial data, ratios and disclosures available on this Finology Ticker GSFC page before making any investment decision. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.