GSFC Q4 Results: Higher expenses weigh on margins, profitability despite 37% topline growth

GSFC Q4 Results: Higher expenses weigh on margins, profitability despite 37% topline growth


Shares of Gujarat State Fertilizers & Chemicals Ltd. (GSFC) fell more than 3% after the company reported a sharp year-on-year drop in the March quarter profit, despite strong revenue growth. Higher expenses impacted the bottomline during the quarter.

The company reported consolidated net profit of ₹52.1 crore for Q4FY26, down 27.5% from ₹71.7 crore in the year-ago quarter.

Total expenses for the quarter rose to ₹2,606.6 crore from ₹1,894.4 crore a year ago, led by higher raw material costs and increased purchase of traded goods.

As a result, EBITDA margins contracted by 100 basis points to 3.2% from 4.2% earlier.

Revenue rose 37% Year-on-year to ₹2,632.7 crore from ₹1,922.2 crore. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter grew by 4% to ₹83.2 crore.

Also read: Mamaearth parent Honasa surges 12% to a 52-week high on highest-ever operating profit in Q4

GSFC’s fertiliser products segment revenue jumped to ₹1,995.9 crore in the quarter from ₹1,399.1 crore a year ago, while industrial products revenue rose to ₹636.8 crore from ₹523.1 crore.

However, profitability in the fertiliser business remained under pressure. The fertiliser products segment posted a loss before tax and finance cost of ₹28.6 crore in Q4FY26, compared with a loss of ₹28.3 crore in the year-ago period. Meanwhile, the industrial products segment profit rose to ₹112.9 crore from ₹97.4 crore a year ago.

For the full financial year FY26, GSFC reported consolidated revenue of ₹10,945.5 crore, up from ₹9,534 crore in FY25. Annual consolidated net profit rose to ₹673 crore from ₹591.2 crore a year ago.

The board recommended a dividend of ₹5 per equity share for FY26, subject to shareholder approval.

Shares of GSFC are trading 2.8% lower on Friday after the results announcement at ₹169.8. The stock is down 7% so far this year.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *