Investors will focus on L&T and Rashtriya Chemicals on Monday, September 28, as the fertiliser maker’s board approved a ₹797 crore ammonia plant revamp contract aimed at reducing overall energy consumption costs. The board met on Friday, 25 September 2026, and the announcement is expected to influence trading activity for both companies. The revamp involves modernising the ammonia manufacturing facility in Thal, Maharashtra, and is part of a broader strategy to improve operational efficiency. Market participants are closely monitoring the deal’s impact on revenue projections and capital allocation.

L&T emerged as the lowest bidder after a competitive tender round, securing the contract to conduct detailed engineering work and to manufacture, supply, construct, erect, commission, and guarantee-run the upgraded facility. The contract value of ₹797 crore excludes taxes, and the construction company will be responsible for all aspects of the modernisation process. The tender process highlighted L&T’s technical capability and cost competitiveness, positioning it as the preferred partner for the project.

In a formal NSE filing, Rashtriya Chemicals confirmed that its board approved the purchase order for L&T on 25 September 2026, with the order amounting to ₹797 crore plus applicable taxes. The company communicated this approval to the stock exchanges, ensuring regulatory compliance and transparency. The filing also detailed the scope of work and the contractual obligations that L&T will undertake under the agreement.

The contract grants L&T a period of 36 months to complete the modernisation, during which the company aims to reduce energy consumption in fertiliser manufacturing. This timeline aligns with the project’s engineering and construction phases, allowing for systematic implementation of advanced technologies. The extended duration is intended to facilitate a smooth transition and minimise operational disruptions at the Thal plant.

Following the 48th annual general meeting held on 25 September 2026, Rashtriya Chemicals’ board approved a plan to raise up to ₹1,500 crore through a further public offering (FPO) of equity shares, subject to necessary approvals. The FPO requires clearance from the Department of Fertilisers, Government of India, and the Department of Investment and Public Asset Management (DIPAM) before funds can be raised from investors. The company’s announcement highlighted the potential for additional capital to support future projects.

Rashtriya Chemicals shares have gained nearly 32% over the last five years but have declined over 14% in the last three years, losing more than 26% of value in the past year. The stock has fallen 25% YTD in 2026 and 12.5% in the past month, with a marginal 0.2% drop in the last five sessions. Its market capitalisation stood at ₹5,990 crore as of the last Friday close. L&T shares, meanwhile, have delivered 119% returns over five years, over 33% in three years, and more than 6% in the past year, though they have fallen 6.3% YTD and 5.8% in the last month, with a market cap exceeding ₹5.3 lakh crore.