Gujarat Narmada Valley Fert & Chem (GNFC) has announced a significant expansion of its Ammonium Nitrate Melt (AN Melt) production capacity, as part of a broader capital expenditure plan totaling INR 2,800 crores. The company's Board of Directors has approved a new 163,000 tonne AN Melt II project worth INR 450 crores, marking a substantial increase in GNFC's chemical production capabilities.

Expansion Details

The AN Melt II project is part of GNFC's strategic growth initiative, which includes several other major projects:

This expansion will nearly double GNFC's AN Melt capacity, bringing the total to approximately 338,000 tonnes per annum when completed.

Financial Performance

GNFC reported improved quarterly results, driven by:

• Reduced input costs
• Better volumes in Weak Nitric Acid (WNA), AN Melt, and Technical Grade Urea (TGU)
• Increased production of ammonia, reaching 155,000 tonnes in Q2

However, the company faced margin pressure in aniline and acetic acid due to import competition and methanol sourcing issues.

Future Prospects

GNFC is actively considering additional investments in bisphenol A and polyol projects, with a potential investment of INR 7,000-8,000 crores. These projects aim to capitalize on the growing market for these chemicals, which is expanding at around 7% annually.

The company is awaiting a potential revision in fixed costs and energy norms for urea production from the Department of Fertilizers, which could help reduce losses in the fertilizer segment.

Challenges and Opportunities

• The recent Iran sanctions have impacted methanol sourcing, affecting acetic acid production.
• GNFC is exploring options to improve profitability in its fertilizer segment.
• The company is working with management consultants to identify cost-saving measures across procurement, operations, and digital deployment.

GNFC's expansion plans and strategic investments demonstrate its commitment to growth in the chemical sector, while also addressing challenges in its fertilizer business. The company's focus on diversification and capacity enhancement positions it to capitalize on market opportunities and improve overall performance in the coming years.

Gujarat Narmada Valley Fert & Chem (GNFC) has announced the resignation of its cost auditors for the financial year 2025-26. The company informed the stock exchanges about this development in compliance with SEBI listing regulations.

Key Details of the Resignation

The cost auditors submitted their resignation letter dated November 3, 2025, with immediate effect. GNFC has taken this resignation on record and duly informed the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) as required under SEBI listing regulations.

Implications and Next Steps

The resignation of cost auditors is a significant corporate action that may have implications for the company's financial reporting processes. GNFC will likely need to appoint new cost auditors for the financial year 2025-26 to ensure compliance with regulatory requirements.

As per the LODR (Listing Obligations and Disclosure Requirements) data, GNFC has promptly disclosed this material information to the stock exchanges, demonstrating its commitment to transparency and regulatory compliance. The company has provided the necessary details as required under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

GNFC continues to operate in the fertilizer and chemicals sector, and this change in cost auditors is not expected to affect its day-to-day operations. However, it is an important corporate governance matter that the company will need to address to maintain its financial reporting standards.