GNFC's Profit Dips Amid Revenue Decline and Market Challenges

Gujarat Narmada Valley Fertilizers and Chemicals (GNFC) recorded a 30% decline in net profit for the June quarter of FY26, falling to Rs 83 crore. This slump is attributed to reduced revenues from its primary business sectors amidst a 'shutdown' that impacted operations significantly.

Despite its diversification into information technology, GNFC's profitability took a hit when compared to Rs 118 crore profits in the same period last year, and sequentially from Rs 211 crore in the preceding quarter. Substantial reductions were noted in income from both fertilizers and chemicals.

Facing a tough market, particularly in chemical products like Aniline and Toluene Diisocyanate, GNFC's Managing Director T Natarajan noted that market pressures and higher energy costs in urea production aggravated the situation, further eroding the company's profit margins.

(With inputs from agencies.)