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Business
GSFC’s Q2 FY27 profit drops 38% despite higher revenue, plans to exit port logistics unit
✍️ BusinessLine
🗓 03 Nov 2026, 01:32 AM
👁 14
Gujarat State Fertilizers & Chemicals reported a 38% fall in Q2 FY27 profit even as its revenue rose, and announced its decision to divest from its port logistics subsidiary.
Gujarat State Fertilizers & Chemicals Ltd (GSFC), a public sector undertaking of the Gujarat government, posted a 38% decline in profit for the second quarter of fiscal year 2027 compared with the same period last year. The dip came despite the company recording an increase in its top‑line revenue, indicating that higher costs or lower margins impacted earnings.
Management attributed the profit slump to rising input costs and a slowdown in certain fertilizer segments, while noting that revenue growth was driven by higher sales of specialty chemicals and expanded export orders. The financial results were disclosed in a filing with the stock exchanges on Tuesday.
In a strategic move, GSFC also announced its intention to exit the port logistics subsidiary it had acquired a few years ago. The company said the divestment aligns with its core focus on fertilizer and chemical manufacturing and will free up capital for future investments. Details of the exit plan, including the timeline and potential buyers, were not disclosed.
Analysts view the profit fall as a reminder of the volatility in the agro‑chemical sector, but they also see the exit from the logistics arm as a step toward streamlining operations. The stock reacted modestly, with shares trading within a narrow band after the announcement.
GSFC’s board will review the progress of the divestment in upcoming meetings, and the company expects the move to improve its balance sheet and support long‑term growth objectives.
Management attributed the profit slump to rising input costs and a slowdown in certain fertilizer segments, while noting that revenue growth was driven by higher sales of specialty chemicals and expanded export orders. The financial results were disclosed in a filing with the stock exchanges on Tuesday.
In a strategic move, GSFC also announced its intention to exit the port logistics subsidiary it had acquired a few years ago. The company said the divestment aligns with its core focus on fertilizer and chemical manufacturing and will free up capital for future investments. Details of the exit plan, including the timeline and potential buyers, were not disclosed.
Analysts view the profit fall as a reminder of the volatility in the agro‑chemical sector, but they also see the exit from the logistics arm as a step toward streamlining operations. The stock reacted modestly, with shares trading within a narrow band after the announcement.
GSFC’s board will review the progress of the divestment in upcoming meetings, and the company expects the move to improve its balance sheet and support long‑term growth objectives.