Stock Movement

• Shares fell up to 6% on Monday, March 9, 2026.
• Previous Close: ₹429.05 (Friday, March 6).
• 2026 Performance: Declined nearly 13% year-to-date.

Reason for the Decline

• Supply Disruption: The ongoing conflict in West Asia has disrupted Liquefied Natural Gas (LNG) supplies.
• Supply Chain Details:
  • GNFC sources re-gasified LNG (RLNG) from GAIL (India) Limited.
  • GAIL’s upstream supplier, Petronet LNG Ltd, cited transit constraints due to the conflict and issued a force majeure notice.
  • Consequently, GAIL issued a force majeure notice to GNFC, limiting RLNG allocation to 60% of the Daily Contracted Quantity (DCQ) starting March 6, 2026.

Impact on Production

• Neem Urea: Production is expected to be affected due to reduced RLNG supply.
• Other Products: Manufacturing remains unaffected for now.
• Uncertainty: GNFC cannot yet estimate the total impact as the situation is ongoing.

Broader Context

• Qatar’s Role: Supplies nearly 40% of India’s LNG imports, making it a critical supplier.
• Potential Risks:
  • Further disruptions or a sharp rise in LNG prices could lead to reduced operating rates or temporary shutdowns at gas-dependent facilities across India.

Company Actions

• GNFC is closely monitoring the situation and will update the exchanges on any material developments.

In short, GNFC is facing partial gas supply curtailment due to West Asia tensions, impacting its key fertilizer production, with limited visibility on the full financial and operational effects.