Both capex projects to commission in Q2 FY27 with 80% utilization by Q4
Gopalpur (96% complete) and H2 nitric acid (93% complete) expected operational by quarter-end with faster ramp-up as these are established chemistries.
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Deepak Frtlsrs and · forward-looking guidance across the available source record.
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What management said would happen.
expansion
Ammonia prices to remain elevated for 2-3 quarters
Current Middle East ammonia at ~$600/ton expected to stay elevated with geopolitical situation; even if war stabilizes, prices unlikely to revert to prior levels immediately.
LNG cost savings of ~₹300 crore annually, likely higher next year
Equinor gas supply (commenced May) replacing higher-cost contracts; savings can increase as more volumes shift to long-term contract pricing.
Base level to shift to elevated platform by FY27 year-end
New capacities (Q3-Q4 contribution), full-quarter Equinor gas benefit, and improved gas cost position will establish a structurally higher earnings baseline.
TAN and nitric acid projects commissioning by Q4 FY26
The TAN project at Gopalpur is 87% complete and nitric acid project at 70%, both on track for commissioning by end of Q4 FY26.
New TAN plant capacity utilization: 70% in FY27, 80%+ in FY28
Management expects the new TAN plant to achieve ~70% capacity utilization in FY27 and 80%+ in FY28.
Ammonia plant capacity increase of ~10% after Q4 shutdown
A planned shutdown in Q4 FY26 is expected to increase ammonia plant capacity by ~10% and improve efficiency.
LNG contract with Equinor to reduce gas costs from May 2026
The new LNG contract with Equinor will start supply from May 2026, expected to materially reduce gas costs and lower ammonia breakeven.
Gopalpur TAN and H2 nitric acid projects to commission in Q1 FY27
Both projects are progressing well (91% and 79% completion) and will materially enhance competitiveness and margin resilience once operational.
15-year LNG contract to reduce ammonia break-even by double-digit percentage
The long-term LNG contract with a Norwegian giant will lower gas costs, reducing the ammonia break-even level significantly from current ~$430-440/ton.
Export quota for TAN may be removed
Discussions with ministries suggest the 50,000 ton/year export quota may be removed as India becomes self-sufficient in ammonium nitrate.