Revenue and Operating Performance Trends
GNFC's net sales have experienced significant variation over the past seven years. After a steady rise from ₹5,896 crores in 2019 to a peak of ₹10,227 crores in 2023, sales declined to ₹7,892 crores in 2025. This volatility reflects market dynamics and operational challenges. Total operating income mirrored this pattern, with no other operating income reported during this period.
Raw material costs, a major expense component, increased from ₹2,848 crores in 2019 to ₹4,454 crores in 2025, indicating rising input costs. Power costs also surged, reaching ₹1,450 crores in 2025 from ₹890 crores in 2019, reflecting energy price pressures. Employee costs remained relatively stable, hovering around ₹500-600 crores annually. Other expenses fluctuated but generally increased, reaching ₹731 crores in 2025.
Operating profit before other income (PBDIT excl. OI) peaked at ₹2,384 crores in 2022 but declined sharply to ₹615 crores in 2025. Including other income, operating profit stood at ₹1,116 crores in 2025, down from a high of ₹2,593 crores in 2022. The operating profit margin excluding other income also contracted from 27.58% in 2022 to 7.79% in 2025, signalling margin pressures.
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Profitability and Earnings Metrics
Profit before tax (PBT) showed a similar trend, peaking at ₹2,298 crores in 2022 before falling to ₹790 crores in 2025. Correspondingly, profit after tax (PAT) declined from ₹1,704 crores in 2022 to ₹585 crores in 2025. The consolidated net profit followed this pattern, standing at ₹597 crores in 2025 compared to ₹1,710 crores in 2022.
Earnings per share (EPS) reflected these fluctuations, with a high of 110.05 in 2022 dropping to 40.61 in 2025. PAT margin contracted from 19.71% in 2022 to 7.41% in 2025, indicating reduced profitability relative to sales. Despite these declines, GNFC maintained a strong equity base, with shareholder's funds increasing steadily from ₹5,299 crores in 2020 to ₹8,576 crores in 2025.
GNFC's interest expenses remained low, rising modestly to ₹23 crores in 2025, while depreciation charges were stable around ₹300 crores annually. The company reported no long-term borrowings, underscoring a debt-light capital structure. Short-term borrowings were minimal in recent years, a marked improvement from ₹859 crores in 2020.
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Balance Sheet and Cash Flow Analysis
GNFC's total assets grew from ₹8,419 crores in 2020 to ₹11,003 crores in 2025, supported by increases in both non-current and current assets. Net block, representing fixed assets net of depreciation, declined from ₹3,791 crores in 2020 to ₹2,840 crores in 2025, reflecting asset ageing or disposals. Capital work in progress rose steadily, indicating ongoing investments.
Non-current investments surged to ₹1,722 crores in 2025 from ₹691 crores in 2020, while current investments also increased significantly. Cash and bank balances improved markedly, reaching ₹2,308 crores in 2025 from just ₹189 crores in 2020, enhancing liquidity. Net current assets expanded from ₹1,848 crores in 2020 to ₹4,212 crores in 2025, signalling stronger working capital management.
GNFC's total liabilities rose moderately, with non-current liabilities stable around ₹1,280 crores and current liabilities increasing to ₹1,147 crores in 2025. The company’s total debt was negligible at ₹99 crores in 2025, a substantial reduction from ₹859 crores in 2020, underscoring improved financial leverage.
Cash flow from operating activities showed volatility, peaking at ₹1,966 crores in 2022 but falling to ₹605 crores in 2025. Investing activities reflected ongoing capital expenditure, with outflows of ₹465 crores in 2025. Financing activities consistently showed outflows, indicating debt repayments and other financing adjustments. The net cash outflow was ₹122 crores in 2025, a manageable level given the company’s cash reserves.
Summary of Historical Performance
Overall, GNFC’s historical performance has been characterised by strong revenue growth until 2023, followed by a contraction in sales and profitability in the subsequent years. Despite margin pressures and profit declines, the company has maintained a robust balance sheet with low debt levels and healthy cash reserves. The steady increase in shareholder equity and reserves reflects retained earnings and financial stability. Investors should note the cyclical nature of GNFC’s earnings and the impact of input costs on margins when analysing future prospects.
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