Gujarat Narmada Valley Fertilizers & Chemicals Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Gujarat Narmada Valley Fertilizers & Chemicals Ltd filed with BSE on 12 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
GNFC reported Q1 FY27 profit that management described as the second highest in the company's history, driven by better realizations in the chemical segment even as sales volumes declined and inventory built up. Several plants including acetic acid, ethyl acetate and TDI were shut for part of the quarter on cost economics but resumed operations in July and August. Management also discussed ongoing capital projects including the Dahej CCPP, energy norm revisions for urea production, and cost-saving initiatives undertaken with consultant A.T. Kearney.
Numbers mentioned
Ammonia production: approximately 173,000 (Q1 FY27)
p. 6
“Ammonia production was approximately 173,000 and 54% out of that was from oil and 49% was from gas.”
Nitin Patel, page 6 of the filed PDF · View the filing
TDI production: 12,800 (Q1 FY27)
p. 6
“So TDI total production was 12,800 a breakup of 66% from Dahej unit and 34% from Bharuch unit.”
Nitin Patel, page 6 of the filed PDF · View the filing
WNA production: 113,000 (Q1 FY27)
p. 7
“WNA total is 113,000 production with a share of 2 plant, 70% and 30%.”
Nitin Patel, page 7 of the filed PDF · View the filing
CNA production: 37,500 (Q1 FY27)
p. 7
“CNA total production was 37,500.”
Nitin Patel, page 7 of the filed PDF · View the filing
AN Melt production: 55,600 (Q1 FY27)
p. 7
“AN Melt was 55,600.”
Nitin Patel, page 7 of the filed PDF · View the filing
TGU production: 74,800 (Q1 FY27)
p. 7
“TGU was 74,800 and formic acid was 8,200.”
Nitin Patel, page 7 of the filed PDF · View the filing
Fertilizer segment result: INR85 crores (Q1 FY27)
p. 5
“the results in case of fertilizer has further iterated by around INR60 crores or so from around INR24 crores to INR85 crores”
D.V. Parikh, page 5 of the filed PDF · View the filing
Urea contribution to fertilizer segment result: INR48 crores (Q1 FY27)
p. 5
“the majority of that is coming from urea, around INR48 crores, and INR12 crores is coming from the ANP side”
D.V. Parikh, page 5 of the filed PDF · View the filing
Cash on hand: Around INR4,000 crores
p. 11
“Around INR4,000 crores.”
D.V. Parikh, page 11 of the filed PDF · View the filing
Capex incurred: INR300 crores (Q1 FY27)
p. 11
“Capex incurred was INR300 crores in CWIP.”
D.V. Parikh, page 11 of the filed PDF · View the filing
WNA sales: around 20,800 (Q1 FY27)
p. 14
“In WNA, we sold around 20,800.”
Nitin Patel, page 14 of the filed PDF · View the filing
CNA sales: 16,400 (Q1 FY27)
p. 14
“And in case of CNA, the figure was 16,400.”
Nitin Patel, page 14 of the filed PDF · View the filing
Energy norm for urea: 6.37 Gcal per metric ton (FY26 onward, 3 years)
p. 4
“It was 6.20 Gcal per metric ton of urea, which is revised to 6.37 Gcal now.”
D.V. Parikh, page 4 of the filed PDF · View the filing
(n)Code business size: around INR100 crores
p. 15
“The size is around INR100 crores as of now, okay?”
D.V. Parikh, page 15 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Full year capex — INR1,200 crores to INR1,500 crores · FY27
stated firmly by D.V. Parikh
p. 11
“Targeted for the full year is another INR1,200 crores to INR1,500 crores.”
D.V. Parikh, page 11 of the filed PDF · View the filing
Steam and power plant saving per metric ton of TDI — INR30,000 to INR40,000 per metric ton
stated conditionally by D.V. Parikh
p. 9
“currently, we are likely to save around INR30,000 to INR40,000 per metric ton of TDI because of the current prices of gas and coal”
D.V. Parikh, page 9 of the filed PDF · View the filing
Total capex over next 2 years — around INR1,500 crores in addition to INR2,800 crores on hand · next 2 years
stated firmly by D.V. Parikh
p. 12
“The total projects on hand are of INR2,800 crores, okay? And over the next 2 years, around another INR1,500 crores will also be spent.”
D.V. Parikh, page 12 of the filed PDF · View the filing
Revenue increase from capex projects — INR1,200 crores to INR1,500 crores
stated conditionally by D.V. Parikh
p. 15
“we foresee the revenue to increase by INR1,200 crores to INR1,500 crores and contribution to improve by around INR500 crores to INR600 crores”
D.V. Parikh, page 15 of the filed PDF · View the filing
TGU production run rate — same level as last FY · FY27
stated as an aspiration by Nitin Patel
p. 14
“it is our expectation of the TGU production to more less at the same level as that of last FY”
Nitin Patel, page 14 of the filed PDF · View the filing
Kearney cost savings quantification — next quarter end
stated conditionally by Nitin Patel
p. 11
“maybe by next quarter end, we may have a better picture flowing into P&L”
Nitin Patel, page 11 of the filed PDF · View the filing
Power project commissioning at Dahej — around 45 days
stated firmly by D.V. Parikh
p. 4
“we are expecting to come in a month's time or so or around 45 days' time”
D.V. Parikh, page 4 of the filed PDF · View the filing
Plant operations for ethyl acetate, acetic acid, TDI Bharuch — till end of financial year
stated conditionally by Nitin Patel
p. 13
“we expect plant to run smoothly till the end of financial year, except any global political war situation going up again and creating the viability issues”
Nitin Patel, page 13 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said oil prices had risen due to the Middle East crisis but have started softening, while gas prices remain volatile though supply is not affecting operations.
Answered by N. B. Desai
Asked by Nirav (Anvil Wealth): How have oil and gas prices moved since Q1, and is gas availability a concern?
p. 6
“Similarly, on front of the gas, the prices remains volatile and availability of the volume is always a concern, but our operations are not affected with -- on account of availability of the gas.”
N. B. Desai, page 6 of the filed PDF · View the filing
Management said global TDI capacity exceeds demand so competitor shutdowns won't materially move global pricing, though a domestic shortage would affect Indian pricing.
Answered by Tejash Shah
Asked by Aatur (ICICI Prudential Life Insurance): Are rotational maintenance shutdowns by Covestro and Wanhua helping TDI pricing?
p. 7
“So 1 month shutdown of Covestro and Wanhua will not affect the overall pricing of the TDI. Yes, there is a shortage in the Indian market of TDI that will definitely affect the pricing.”
Tejash Shah, page 7 of the filed PDF · View the filing
Management said realizations were a mixed bag with no clean comparison, and declined to give forward guidance on realizations.
Answered by D.V. Parikh
Asked by Falguni Dutta (Mansarovar Financials): Are margins on the inventory being liquidated now lower than in Q1, and what is the realization guidance for Q2 versus Q1?
p. 8
“There is a mixed bag as far as realization is concerned, okay? Initially, the realizations were lower. Off late, the prices have gone up.”
D.V. Parikh, page 8 of the filed PDF · View the filing
Management said the saving depends on the gas-coal price delta and is currently estimated at a range per metric ton of TDI but could vary.
Answered by D.V. Parikh
Asked by Jigar Shah (Financial Research): What savings are expected from the coal-based steam and power plant at Dahej?
p. 9
“But currently, we are likely to save around INR30,000 to INR40,000 per metric ton of TDI because of the current prices of gas and coal.”
D.V. Parikh, page 9 of the filed PDF · View the filing
Management outlined several completed initiatives including fuel oil renegotiation, boiler overhaul, and power mix optimization, but said quantified savings have not yet been finalized with Kearney.
Answered by Nitin Patel
Asked by Jigar Shah (Financial Research): What is the update on the A.T. Kearney consulting engagement and expected savings?
p. 11
“quantification we have not yet signed off with the Kearney. It is under different stage of evaluation.”
Nitin Patel, page 11 of the filed PDF · View the filing
Management gave a ballpark range for expected revenue and contribution increase, citing price volatility as a constraint on precision.
Answered by D.V. Parikh
Asked by Maanvardhan Baid (Sammaan India PMS): What incremental turnover is expected from the INR2,800 crore capex once projects complete?
p. 15
“we foresee the revenue to increase by INR1,200 crores to INR1,500 crores and contribution to improve by around INR500 crores to INR600 crores”
D.V. Parikh, page 15 of the filed PDF · View the filing
Management said the business is around INR100 crores in size and still in a formative stage, with plans to be shared by year end.
Answered by D.V. Parikh
Asked by Ashok (Individual Investor): What is the future plan for GNFC's (n)Code business?
p. 15
“management is working on the plan for increasing the presence in the digitization, AI, etcetera. But then it is yet in a very formative stage.”
D.V. Parikh, page 15 of the filed PDF · View the filing
Risks flagged
War-related escalation and de-escalation affecting viability, realizations and input costs
p. 3
“Overall, during the quarter 1, it has been the situation of escalation and deescalation as far as war is concerned. And that has a ripple effect on the business as well, in terms of, at times, viability issues, at times, realizations, which have gone up.”
D.V. Parikh, page 3 of the filed PDF · View the filing
Plants shut down during the quarter due to cost economics
p. 3
“During this quarter gone by, there are plants which we could not run for cost economics reason, like acetic acid, ethyl acetate and to some extent, TDI as well.”
D.V. Parikh, page 3 of the filed PDF · View the filing
Weak offtake resulting in inventory buildup
p. 4
“but the offtake has not been so good, which resulted into some issue in the inventory”
D.V. Parikh, page 4 of the filed PDF · View the filing
Delay in weak nitric acid plant project
p. 4
“There is a slight time change in case of a weak nitric acid plant, but that is being monitored actively. So about 3 months delay is there, which is going to be recouped.”
D.V. Parikh, page 4 of the filed PDF · View the filing
Volatile and unresolved Middle East crisis affecting oil prices
p. 6
“Only point is that still the Middle East crisis has not resolved. So going forward, the prices may come down if everything goes well.”
N. B. Desai, page 6 of the filed PDF · View the filing
Gas price volatility and availability concerns
p. 6
“the prices remains volatile and availability of the volume is always a concern”
N. B. Desai, page 6 of the filed PDF · View the filing
Possible recurrence of global political/war situation disrupting plant viability
p. 13
“except any global political war situation going up again and creating the viability issues”
Nitin Patel, page 13 of the filed PDF · View the filing
Volatility in gas and coal prices making cost saving estimates uncertain
p. 9
“They are at an elevated level, but how more elevated it can become is anybody's guess or it will taper down with some resolution coming.”
D.V. Parikh, page 9 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.