Wedoany.com Report-Dec.26, Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) has awarded a contract valued at approximately Rs 360 crore to Toyo Engineering India Private Limited. The agreement covers the supply of a new Ammonium Nitrate-II plant on a lump-sum engineering, procurement, and construction (LEPC) basis.

The project follows board approval granted on November 12, 2025, for installing the facility with a capacity of 480 metric tonnes per day, equivalent to an annual output of around 163,200 metric tonnes. Toyo Engineering India has partnered with INCRO S.A. of Spain for process know-how and licensing to ensure efficient and reliable implementation.

The contract will be executed over a period of 20 months. GNFC has emphasized its commitment to environmental conservation throughout the project's construction and long-term operations.

GNFC clarified that neither the promoter nor any member of the promoter group holds any interest in Toyo Engineering India. The transaction does not qualify as a related-party dealing.

GNFC ranks among India's leading entities in the manufacturing and sale of fertilizers and industrial chemical products. The company also provides information technology services. Its product portfolio includes urea, ammonium nitrophosphate, calcium ammonium nitrate, methanol, acetic acid, nitric acid, and other chemicals.

In its second quarter of financial year 2026 (Q2 FY26), GNFC delivered strong financial performance. Consolidated net profit increased by 70.5% to Rs 179 crore compared to the same quarter in the previous year. This growth was supported by a 2.7% rise in revenue from operations, reaching Rs 1,968 crore.

The improved results reflect higher sales volumes, better cost management, and operational efficiencies across its fertilizer and chemical segments.

On the stock market, shares of Gujarat Narmada Valley Fertilizers & Chemicals rose 0.10% to Rs 490.05 on the BSE following the contract announcement.

The new Ammonium Nitrate-II plant will significantly expand GNFC's production capacity in this segment, with an expected increase of nearly 94% once commissioned. This enhancement will help meet growing domestic demand from downstream industries while supporting India's broader industrial needs.

The project aligns with GNFC's strategy to strengthen its position in the chemicals and fertilizers market through targeted investments and reliable partnerships. By leveraging advanced technology from international collaborators, the company aims to improve operational efficiency and product quality.

This development demonstrates GNFC's focus on capacity expansion and long-term sustainability in its core business areas. The contract award and solid quarterly results highlight the company's ongoing progress in maintaining competitiveness and delivering value to stakeholders.