GNFC Share Falls 6% to 52-Week Low After LNG Supply Cut to 60% Amid Iran–Israel Conflict; May Impact Urea

Shares of Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC), a leading Indian fertilizer and chemicals manufacturer, witnessed sharp selling pressure on Monday after the company reported supply disruptions linked to the ongoing conflict in West Asia. The stock dropped as much as 6% to Rs 405.45 on the National Stock Exchange (NSE), hitting its 52-week low.

GNFC Share Price Today

Shares of GNFC on NSE were trading lower on morning of 9 March. The stock declined by Rs 20.35, or 4.72%, to Rs 410.95 as of 10:57 am. During the trading session, the stock opened at Rs 419.60 and touched an intraday high of Rs 419.60, while slipping to a low of Rs 405.45. Notably, the day's low also marked the stock's 52-week low of Rs 405.45.

Over the past year, the stock has traded within a wide range, with a 52-week high of Rs 573.75 and a 52-week low of Rs 405.45.

LNG Supply Disruption in India Due to Iran-Israel Conflict

The decline followed a business update issued by the company last week, in which it highlighted challenges related to the supply of regasified liquefied natural gas (RLNG). According to the company, the conflict in the Middle East has disrupted the supply chain for liquefied natural gas (LNG), affecting the availability of key inputs required for operations.

What is LNG? Why Is It So Important?

LNG is a natural gas that has been cooled to about -162°C (-260°F) so it turns into a liquid. This process reduces its volume by about 600 times, making it much easier and cheaper to store and transport, especially over long distances where pipelines are not available.

Why LNG Is Important

1. Easier Transportation
Natural gas in gaseous form is difficult to ship across oceans. By converting it into LNG, it can be transported in specialized LNG tankers from producing countries to importing nations.

2. Energy Security
Many countries that do not produce enough natural gas rely on LNG imports to meet energy demand for electricity, industries and households.

3. Industrial Fuel
Industries such as fertilizer, chemicals, steel and power generation depend heavily on natural gas or RLNG (regasified LNG) as a cleaner fuel and feedstock.

4. Fertilizer Production
In fertilizer plants, natural gas is a key raw material used to produce ammonia, which is then used to make urea fertilizers. That is why LNG supply disruptions can directly affect fertilizer output.

5. Cleaner Energy Source
Compared with coal and oil, LNG produces lower carbon emissions, making it an important transition fuel as countries move toward cleaner energy systems.

So when LNG supply is disrupted-like due to shipping or geopolitical issues-it can reduce gas availability, forcing fertilizer plants to cut production or operate at lower capacity.

GNFC stated that GAIL India Limited, which supplies RLNG to the company, has received a force majeure notice from its upstream supplier Petronet LNG Limited. The notice cited transit-related constraints that have affected the supply of LNG.

Since GNFC receives RLNG through its agreement with GAIL, and the supply to GAIL itself depends on LNG received from Petronet LNG, GAIL has subsequently issued a force majeure notice to GNFC as well.

As a result of these supply constraints, the allocation of RLNG to GNFC under the existing supply agreement has been reduced to 60% of the Daily Contracted Quantity (DCQ) starting March 6, 2026.

The company indicated that the reduced gas availability could affect the production of neem-coated urea, a key fertilizer product. However, GNFC clarified that manufacturing operations for its other products remain unaffected at present.

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