• The document is a transcript of the Q2 FY27 Earnings Conference Call held by Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC).
  • The event was scheduled for Tuesday, November 03, 2026 at 04:00 PM IST, as intimated to the stock exchanges via letter dated October 17, 2026.
  • The stated purpose of the event was to discuss the company's Q2 FY27 financial results and business performance.
  • Management participants included:
  • Mr. D. V. Parikh – Executive Director and Chief Financial Officer
  • Mr. Nitin Patel – Executive Director
  • Mr. P.K. Purohit – Executive Director
  • Mr. Rajesh Pillai – Company Secretary and Compliance Officer
  • Mr. Nirmesh Desai – Head, Material Management
  • Mr. Tejash Shah – General Manager
  • Mr. Vishwanath Biradar - Additional General Manager
  • The transcript along with the audio was uploaded on the Company's website (www.gnfc.in).
  • The company explicitly refrained from commenting on current quarter (Q3) performance or specific product prices, stating these are price-sensitive information.

Financial and Business Highlights from Q&A Session

Financial Performance:

  • Q2 witnessed margin pressures sequentially mainly due to lower margins on finished products and abnormally high energy prices
  • One-time impacts totaling ~INR 75 crores affected results (including wage settlement provisions of INR 33 crores)
  • Chemical segment witnessed margin pressures due to realization impact on TGU, Ammonium Nitrate Melt, Weak Nitric Acid
  • Fertilizer operating results improved relatively, driven by volumes and improvement in energy norms
  • Cash and bank balance plus deposits totaled approximately INR 3,900 crores as of September end
  • H1 capex amounted to about INR 500 crores

Production Numbers for Q2 FY27:

  • Ammonia: ~178,000 tons
  • TDI: 8,700 tons
  • Technical Grade Urea (TGU): 44,900 tons
  • Ammonium Nitrate Melt: ~41,000 tons
  • Weak Nitric Acid (WNA): ~114,000 tons
  • Concentrated Nitric Acid (CNA): ~41,000 tons

Product Prices (Q2 Average):

  • TDI: ~INR 285,000
  • Aniline: ~INR 180,000 (later corrected to INR 238,000)
  • Acetic Acid: ~INR 72,840-73,000
  • Weak Nitric Acid: ~INR 28,500 (on 100% basis)

Operational Updates:

  • Captive coal-based plant became operational from July 25th, generating steam from August
  • Most ongoing projects are on execution schedule despite some geopolitical impacts
  • One project has a 3-month delay but recouping plan discussed with contractor

Market Context:

  • Business navigating turbulent times with high energy prices (oil, gas, coal)
  • Chinese competition mentioned, specifically Wanhua's 360 kt TDI capacity addition
  • Company maintains cautious procurement policy based on production plans, avoids speculative stocking

Additional Notes Section

  • The document includes the full transcript of the earnings conference call with detailed Q&A session.
  • No financial data was disclosed in the announcement itself beyond what was discussed in the call.
  • Management repeatedly emphasized the uncertain market environment due to geopolitical situations and advised against making predictions.
  • The company complied with regulatory requirements by explicitly stating they would not comment on price-sensitive information regarding current quarter performance.