GSFC profit falls 41% in Q4 even as revenue surges 37%
A strong top-line quarter collapsed into a profit miss. Margins, not sales, told the story.
— 3 earlier stories on Gujarat State Fertilizers & Chemicals Ltd. →What's new
- Q4 standalone net profit fell 41% YoY to ₹34.24 crore despite a 37.5% revenue jump to ₹2,621.59 crore.
- Full-year FY26 profit rose 13.7% to ₹651.52 crore, showing the first three quarters were strong.
- Board recommended a final dividend of ₹5 per share, unchanged from last year.
Why this matters
The quarter is a textbook margin squeeze. Revenue grew fast but profit fell hard, which means the cost line moved faster than the top line. For a fertilizer company, that points to input prices moving ahead of subsidized end-product pricing.
What we're watching
- Whether the Q4 margin compression carries into the June quarter.
- Management's explanation for the cost-side blowup in the earnings concall.
- The full-year operating margin trend versus the Q4 dip.
The full read
GSFC posted a ₹34.24 crore profit in Q4. That is a 41% drop from ₹58.40 crore a year earlier, even as revenue surged 37.5% to ₹2,621.59 crore. The number that matters is the margin. Costs moved faster than sales. The full-year picture is healthier. FY26 profit rose 13.7% to ₹651.52 crore, meaning the first three quarters carried the load. The board kept the dividend at ₹5 a share. A single quarter does not change the annual trajectory, but it does reset the conversation about input costs for the year ahead.
Questions answered
- Why did profit fall so sharply when revenue jumped 37.5%?
- Margins compressed. Revenue hit ₹2,621.59 crore but the cost of sales rose even faster, wiping out the gain. It is the classic fertilizer-industry pattern when input costs move before regulated prices do.
- How does the weak quarter fit into the full year?
- Full-year profit still rose 13.7% to ₹651.52 crore. That means the first three quarters were strong enough to offset the Q4 slide, so the annual story remains intact.
- What is the dividend payout?
- The board recommended a final dividend of ₹5 per share, same as last year. That is a 250% payout on face value.
- Is this result a miss relative to expectations?
- The filing is standard disclosure. A mixed quarter of surging revenue and falling profit is not extraordinary for a mid-cap PSU, and the rationale notes the market likely anticipated the numbers.
Gujarat State Fertilizers & Chemicals Ltd.
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All notes on GSFC →- 22 May 2026 · 1:23 PM IST GSFC profit falls 41% in Q4 even as revenue surges 37%
- 42d ago GSFC hits ₹2,622 cr in Q4 sales, but flags monsoon risk
- 45d ago Gujarat State Fertilizers & Chemicals releases routine Q4 update
- 45d ago GSFC's press release adds colour to results that were already out.