Athira Sethu
Kochi, 28 September 2026
Larsen & Toubro (L&T) and Rashtriya Chemicals and Fertilisers (RCF) stocks could witness investor interest on Monday, September 28, following RCF’s decision to give a ₹797 crore contract to L&T for upgrading RCF’s ammonia plant.
₹797 Crore Ammonia Plant Upgrade
The contract between RCF and L&T has been approved by RCF’s board following an open bidding process. L&T is the lowest bidder in the project.
The project entails upgrading RCF’s ammonia production facility in Thal, Maharashtra. L&T is set to execute multiple aspects of the project including engineering, manufacture, supply, construction, installation, and commissioning.
The project is valued at ₹797 crore excluding taxes.
The deadline given for completion of the project is 36 months, while one of the aims for the upgrade is reducing energy consumption during fertiliser production.
RCF to Raise ₹1,500 Crore
RCF has been granted permission from its shareholders to raise up to ₹1,500 crore through a Further Public Offering (FPO).
As per the plan, RCF would float fresh equity shares. It has not completed the process. As the company is owned by the government, the proposal has to be approved by the Department of Fertilizers and DIPAM (Department of Investment and Public Asset Management).
Performance of RCF Shares
The stock of RCF has appreciated by around 32% during the last five years. But in three years, the stock has depreciated by more than 14%, while in one year, it has lost more than 26%.
During 2026, till now, the share of RCF has fallen by more than 25%. Also, the share price of the company has fallen by 12.5% during the last one month.
At the end of trading on Friday, September 25, RCF had a market capitalization of around ₹5,990 crore.
Other L&T Stocks in Spotlight
L&T stocks may also come into spotlight due to the recently signed RCF contract, which adds ₹797 crore in the firm’s EPC order book/revenue pipeline.
The returns of L&T stocks are 119% over the past five years and 33% in the last three years. The stock, however, has been down by 6.3% so far in 2026 and also by 5.8% over the past one month.
L&T’s market capitalization is more than ₹5.3 lakh crore as per Friday’s closing market data.
In all, investors will keep an eye on both the firms due to the ₹797 crore plant upgrading contract and the ₹1,500 crore FPO from RCF.
