Gujarat Narmada Fertiliser Company (GNFC) has restarted its Bharuch acetic acid plant after a 3-month shutdown caused by weak feedstock margins. The company also restarted operations at its ethyl acetate and TDI plants in August, enhancing the outlook for the rest of the year.
GNFC also said profit in Q1 FY 2027 increased to the second-highest quarterly level in its history (after Q1 FY 2022), assisted by stronger realisations throughout product lines, a sharp leap in fertiliser segment profit and early gains from cost-saving projects.
GNFC said the quarter was driven by favourable realisations instead of higher volumes, even as sales volumes lagged manufacturing in some lines. The management explained the period as strangely strong, but also volatile, with oil and gas prices increase significantly due to Middle East tensions.
The company’s fertiliser business was a major contributor. Urea accounted for Rs. 48-crore of fertiliser segment profits, even as ANP contributed Rs. 12-crore. The chemical business also stayed profitable, assisted by stronger pricing and the gradual liquidation of inventory built up earlier within the quarter.
The company anticipates its coal-based steam and power venture to reduce TDI manufacturing costs by Rs. 30,000-40,000 per ton at current costs.
The management, however, declined to givequarter-to-quarter guidance, citing volatile oil, gas and chemical markets.
