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GNFC's operational income improved in Q3 FY26, driven by increased volumes in both the chemical and fertilizer segments. The fertilizer segment demonstrated stability, with slight improvements in NBS rates and good performance from complex fertilizer and urea volumes, leading to a reduction in segment losses. Conversely, the chemical segment, while achieving better volumes, faced pricing pressure across most products, with TDI being an exception.

The company's total ongoing CAPEX projects amount to Rs. 2,800 crores, with Rs. 1,000 crores already spent as of December 2025. The CCPP project is on track for commissioning by end March or early April 2026, expected to generate a net inflow of Rs. 82 crores. Additionally, the Board approved new CAPEX for a fifth boiler at Bharuch, estimated at Rs. 480-500 crores, aiming to boost efficiency from 71-75% to 83%. An extra line from DGVCL/GETCO was also approved to enhance green power utilization and operational stability.

GNFC has engaged A.T. Kearney since October to identify and implement cost savings, targeting a total of Rs. 260-300 crores annually. While some initial savings have been realized, the majority are pending the finalization of contracts with suppliers. A concrete saving of Rs. 5-7 crores has been secured through renewable power purchase agreements, with further annual savings expected upon full contract sign-off.

GNFC maintains approximately 60% market share in the Indian TDI market, which has a total consumption of about 1 lakh tonnes in foam applications. The company's combined capacity across both plants is 60,000-67,000 tonnes. In Q3 FY26, TDI production was 16,000 metric tonnes, contributing to sales of 30,000 tonnes up to Q3. Management aims to operate at full capacity, and TDI prices have shown an improving trend since January, bolstered by a five-year extension of anti-dumping duties.

GNFC is expanding its ammonia production capacity by 50,000 tonnes per annum through an ammonia make-up loop to support downstream projects. Despite this expansion, the company anticipates needing to purchase an additional 35,000-40,000 tonnes of ammonia from the external market to meet its overall requirements.

The company faces ongoing uncertainty and volatility in methanol prices and availability, a critical raw material for acetic gas. However, the removal of export tax rebates by China is expected to positively impact acetic acid prices in the Indian market. TDI prices are also showing an upward trend globally and domestically, supported by the recent extension of anti-dumping duties for five years.