GNFC
Micro CapGujarat Narmada Valley Fertilizers and Chemicals Limited
Industrials
Gujarat Narmada Valley Fertilizers and Chemicals Limited (GNFC) is an Indian manufacturer of fertilizers and industrial chemicals. The company has been profitable for 49 out of its 50 years of operation, except for FY15. It also has an IT division.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is acceptable, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Excellent · 90/100Rev +7% YoY · PAT +88% YoY · margin expansion · +11% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,208 Cr | +7.5% | +10.6% |
| EBITDA | ₹482 Cr | +100.8% | +166.3% |
| Operating margin | 22.0% | +1000 bps | +1300 bps |
| PAT | ₹396 Cr | +87.7% | +164.0% |
| PAT margin | 17.9% | +766 bps | +1041 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
GNFC reported strong Q4 FY26 results with revenue up 11% QoQ and 7% YoY. Full-year PAT improved 35% to INR 797 crores, driven by better chemical realizations and benign raw material prices. The Board declared a 210% dividend, the second highest in company history.
GNFC delivered strong Q4 FY26 results, driven by robust chemical realizations and benign raw material costs, leading to record PAT and dividend. While geopolitical events introduce raw material price volatility and impact some volumes, the company is managing supply and progressing on key capacity expansion projects. The fertilizer segment remains a drag due to regulatory delays.
Chemical Segment Performance
The improvement is mainly driven by chemicals.
Technical Grade Urea (TGU)
The company came forward and supported the country on diesel exhaust fuel availability. We simply doubled our TGU production for March.
IT Division Growth
The IT division showed an improvement in revenue of around 20% and profit doubled from INR17 crores to INR35 crores.
Ammonium Nitrate Demand
Government of India has announced that coal-based chemicals would be a priority. For mining, explosives are required, and ammonium nitrate will be consumed.
Coal-based CCPP
Synchronization sometime in the third week of June. Performance guarantee test run to make it available on a full steam basis sometime in the third week of August '26.
Ammonia Expansion
Ammonia expansion is going on track and is going to come up by next year (FY27).
Weak Nitric Acid Plant
There is a slight minor delay in case of weak nitric acid of around 2.5 months. It is going to come up by next year (FY27).
Ammonium Nitrate Melt Plant
Ammonium nitrate melt is going on track and is going to come up by next year (FY27).
Strong Chemical Realizations
Main reasons driving this profit is the better realization in case of chemicals, mainly in Q4 both sequential Q4 and Y-o-Y Q4.
Benign Raw Material Prices
On a full year basis, it is mainly the impact of benign raw material prices, which are in relative terms benign.
Government Thrust on Coal-based Chemicals
Government of India has announced that coal-based chemicals would be a priority. For mining, the explosives are required and for explosives, ammonium nitrate will be consumed.
Domestic Ammonium Nitrate Demand
Presently around 4 lakh, 4.5 lakh import is there in ammonium nitrate. Based on domestic capacity increase, there will be no import in the future and domestic production will be absorbed.
War Impact on Logistics
The war emerged, the country had 2 issues: availability of diesel exhaust fuel and requirement from higher ammonium nitrate. There was disruption in logistics.
High Gas Prices
In case of methanol, the cost economics did not work out given the very high gas price. Methanol production is not viable.
Competitive Headwinds in Aniline TDI
In spite of the competitive headwinds, which were particularly noticed in case of aniline TDI, the company not only survived but did better.
Aniline Dumping from China
There is huge dumping from China, although there is an antidumping duty. Chinese Aniline is very cheap, making it difficult to compete.
Raw Material Price Volatility
Methanol has gone through a volatility. Oil prices have been hovering high. Prices of benzene and toluene have spiked because of the war situation.
Geopolitical Instability
It all depends on war situation, how quickly it resolves and what is stored in future. It is very difficult to predict.
Regulatory Delays for Fertilizers
Energy norms are under approval and the fixed cost revision is still at discussion stage, with no particular update in terms of formal communication.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Management explicitly reported Q4 revenue growth on both a quarter-on-quarter (11%) and year-on-year (7%) basis. Full-year PAT growth was also highlighted, while production and sales were noted as not comparable year-on-year due to an annual turnaround.
Revenue Growth (QoQ)
Revenue on a quarter-on-quarter basis improved by 11%.
Revenue Growth (YoY)
Revenue on a Y-o-Y basis improved by 7%.
PAT Growth (FY26 YoY)
PAT has improved on a full year basis by 35% to INR797 crores.
PBT (FY26)
PBT of INR 1,065 crores.
New Projects Identification
New projects identification will have clarity by end of this calendar year for taking it to the investment table-grade decisions.
Optimizing Acetic Acid/Ethyl Acetate Production
The company is evaluating whether it is viable to produce acetic acid or source from the market for manufacturing the further downstream called ethyl acetate.
AT Kearney Cost Savings
Some saving has already accrued, predominantly on account of oil, due to their effort. All numbers will be reconciled at the end of the assignment.
Future Urea Policy Evaluation
It depends upon what are the details of the policy. Without going to details, it is premature to comment. We will have to compare it with other investment opportunities.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Coal-based CCPP Commissioning | Synchronization by third week of June, full steam by third week of August '26. | Actual commissioning and realization of stated INR10-12 crores per month in savings. |
| Ammonia, Nitric Acid, Ammonium Nitrate Projects | All three are expected to come up by next year (FY27). | On-schedule commissioning and successful ramp-up of new capacities. |
| Fertilizer Policy Revisions | Energy norms under approval, fixed cost revision at discussion stage. | Formal communication on revised fixed costs and energy norms for the fertilizer segment. |
| New Project Identification | Clarity by end of this calendar year. | Announcement of investment-grade decisions for new projects. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
56NeutralSMA20 +8.3% / mo
Technical chart
GNFCweekly · 3Y-19.4%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 52. Wait for confirmation.
- SMA20 rising (~7.6% over last month) — short-term momentum positive.
- RSI(14) at 52 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 11% off 52W high · 37% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 15.5%.
- Valuation contributes 26/30 to the score.
Main drags
- Quality is weaker at 1/20; verify the latest quarterly trend.
- Growth is weaker at 5/25; verify the latest quarterly trend.
- Cash flow is weaker at 6/10; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 67th percentile of the scored universe and 64th percentile within Industrials. Main check: results consistency is weak at 31/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: 2 recent quarters had PAT decline worse than 25% YoY.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Industrials: 64th pctile, median 68 · Micro: 52nd pctile, median 71
0 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 2.5%.
- ▸8 years of positive FCF.
- ▸Debt/equity is 0.00.
Trust risks
- ▸2 recent quarters had PAT decline worse than 25% YoY.
- ▸OPM spread across recent quarters is 20%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 8.84
- P/B
- 0.78
- EV/EBITDA
- 6.03
- Market Cap
- 7142.00Cr
Profitability
- ROE
- 9.13%
- ROCE
- 12.00%
- ROA
- 7.11%
- Dividend Y
- 3.70%
Growth (CAGR)
- Revenue 5Y
- 9.00%
- EPS 5Y
- 3.00%
- Revenue 3Y
- -9.00%
- EPS 3Y
- -18.00%
Balance Sheet
- Debt/Equity
- 0.00
- Interest Coverage
- 146.50×
- Altman Z
- 4.24
- Book Value
- 620.00
Cash Flow
- FCF Yield
- 2.63%
- FCF Positive Y
- 8/5
- OCF
- 654.00 Cr
- EPS TTM
- 54.99
Shareholding
- Promoter Hold
- 41.30%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 58%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.