GSFC Q2: Shifts Fertiliser Production To Better-Margin Products Amid Raw Material Cost Pressure
ET Now · 04 Nov 2026 · 6 min
Management interview of Gujarat State Fertilizers & Chemicals Ltd (GSFC), with 3 key numbers discussed.
- S.K. Bajpai, Senior VP Finance & Legal & CFO, Gujarat State Fertilizers & Chemicals Ltd
GSFC is awaiting government notification on revised NBS subsidy rates effective October 1, which it expects will provide relief from elevated raw material costs over the next six months. The company has commissioned a flexible line at its Sikka plant to pivot manufacturing toward higher-margin NPK and DAP grades. Although sulphur prices surged 327% YoY, GSFC is mitigating the impact through cheaper imported sulphur contracts. To secure raw material integration, it has awarded EPC contracts for phosphoric and sulphuric acid units at Sikka to meet 50% of its phosphoric acid needs.