Gujarat Narmada Valley Fertilizers Reports Sudden Leakage at TDI-II Plant, Implements Precautionary Shutdown

1 min read     Updated on 19 Sept 2025, 05:47 PM
scanx
Reviewed by
Shriram ShekharScanX News Team
whatsapptwittershare
Overview

Gujarat Narmada Valley Fert & Chem's TDI-II Plant in Dahej experienced a sudden leakage on September 19, 2025, leading to an immediate precautionary shutdown. The incident was contained within the plant premises with no gas release beyond boundaries, property damage, or casualties reported. The plant will remain offline until thorough safety checks and remedial measures are completed. No insurance claims are required, and the company has informed stock exchanges in compliance with SEBI regulations.

19829882

*this image is generated using AI for illustrative purposes only.

Gujarat Narmada Valley Fert & Chem experienced an unexpected incident at its TDI-II Plant in Dahej on September 19, 2025, prompting an immediate precautionary shutdown of operations. The company swiftly executed safe shutdown procedures following a sudden leakage at the facility.

Incident Details

According to the company's official statement to the stock exchanges, the leakage occurred at the TDI-II Plant, necessitating an immediate shutdown as a precautionary measure. Gujarat Narmada Valley Fert & Chem emphasized that the incident remained confined within the plant premises, with no gas release beyond the plant boundary. Importantly, the company reported no damage to property and no casualties as a result of the incident.

Safety Measures and Restart Plans

In line with the company's commitment to safety, Gujarat Narmada Valley Fert & Chem has announced that the TDI-II Plant will remain offline until thorough checks and necessary remedial measures are completed. The decision to restart operations will be made only after ensuring all safety protocols are met.

Financial Impact

The company clarified that no insurance claims are required due to the absence of property damage or losses. This suggests that the financial impact of the incident may be limited to temporary production disruptions.

Regulatory Compliance

Gujarat Narmada Valley Fert & Chem promptly informed the stock exchanges about the incident, adhering to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This transparency aligns with the company's obligations as a listed entity to keep shareholders and the market informed of material events.

Market Reaction

Investors and market analysts will likely monitor the situation closely, particularly focusing on the duration of the plant shutdown and any potential impact on Gujarat Narmada Valley Fert & Chem's production targets or financial performance in the coming quarter.

As the situation develops, stakeholders will await further updates from the company regarding the completion of safety checks and the resumption of operations at the TDI-II Plant in Dahej.

Historical Stock Returns for Gujarat Narmada Valley Fert & Chem

1 Day5 Days1 Month6 Months1 Year5 Years
-0.44%-0.32%-1.97%+2.98%-22.70%+134.46%
Gujarat Narmada Valley Fert & Chem
View in Depthredirect
like15
dislike

GNFC Reports Q1 FY26 Results: Production Shutdown Impact and TDI Price Hike

1 min read     Updated on 12 Aug 2025, 07:36 PM
scanx
Reviewed by
Jubin VergheseScanX News Team
whatsapptwittershare
Overview

Gujarat Narmada Valley Fert & Chem (GNFC) experienced significant production shutdowns in Q1 FY26, impacting revenue by Rs 375 crores and bottom-line by Rs 148 crores. TDI production reached 16,000 metric tons, with prices increased by Rs 12,000 effective August 1st. The fertilizer segment saw increased losses of Rs 100 crores due to lower urea production and higher costs. GNFC appointed Kearney as a strategic consultant for cost reduction and growth planning. No further plant shutdowns are expected for the rest of the year, with potential improvements anticipated in the chemical segment.

16553208

*this image is generated using AI for illustrative purposes only.

Gujarat Narmada Valley Fert & Chem (GNFC) recently held its quarterly earnings call to discuss the Q1 FY26 results, revealing significant impacts from production shutdowns and strategic moves in its key business segments.

Production Shutdown Impact

The company experienced substantial production shutdowns during the quarter, which had a considerable effect on its financial performance:

  • Revenue impact: Rs 375.00 crores
  • Bottom-line impact: Rs 148.00 crores

TDI Production and Pricing

Despite the challenges, GNFC reported progress in its Toluene Diisocyanate (TDI) segment:

  • TDI production reached 16,000 metric tons for both plants combined in Q1
  • The company maintains expectations of 67,000 tons annually
  • TDI prices were increased by Rs 12,000.00 effective August 1st
  • Sales mix: 90% on contract basis, 10% spot sales

Fertilizer Segment Performance

The fertilizer segment faced increased losses due to multiple factors:

  • Losses increased to Rs 100.00 crores
  • Lower urea production by 40,000 tons
  • Energy under-recovery of Rs 13.00 crores
  • Higher repair costs of Rs 45.00 crores

The company expects energy and fixed cost revisions by Q3 FY26, which could potentially improve the segment's performance.

Strategic Initiatives

GNFC has taken several strategic steps to enhance its operations:

  • Appointed Kearney as a strategic consultant for cost reduction initiatives and investment pathway planning
  • Implementation of these initiatives is expected to begin in Q2
  • The company is focusing on both financial benefits and strategic aspects for future growth

Outlook

Management confirmed that no further plant shutdowns are expected for the rest of the year, which should contribute to more stable production levels. The company is also optimistic about potential improvements in the chemical segment, particularly in the second half of the fiscal year when demand typically increases.

Financial Highlights

  • The balance sheet saw capitalization of around Rs 225.00 crores during the quarter for ongoing projects
  • Other comprehensive income improved due to fair value improvements in investments

GNFC's management remains focused on optimizing production, managing costs, and implementing strategic initiatives to navigate the challenges and capitalize on market opportunities in the coming quarters.

Historical Stock Returns for Gujarat Narmada Valley Fert & Chem

1 Day5 Days1 Month6 Months1 Year5 Years
-0.44%-0.32%-1.97%+2.98%-22.70%+134.46%
Gujarat Narmada Valley Fert & Chem
View in Depthredirect
like20
dislike
More News on Gujarat Narmada Valley Fert & Chem
Explore Other Articles