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Gujarat Fluorochemicals reported revenues of ₹1,588 crore

ICICIdirect Research 13 Aug 2026 DISCLAIMER

News: Gujarat Fluorochemicals reported revenues of ₹1,588 crore, up 24% YoY. Segment wise, Fluoropolymers (58% of revenues) reported a growth of 15% YoY, Fluorochemicals (29% of revenues), up 52% YoY, Bulk Chemicals (10% of revenues) reported a growth of 11% YoY, Others (3% of revenues) grew 58% YoY.  GPM came in at 66.3%, up ~120 bps YoY. EBITDA for the quarter stood at ₹428 crore, up 24% YoY, translating to margins of 27%, flat YoY. PAT for the quarter stood at ₹219 crore, up 19% YoY.

View: The company reported a strong overall quarter, supported by healthy volume growth and a significant traction from R32 refrigerant gas. Fluoropolymers growth was driven by new-age fluoropolymers. Existing capacities for new-generation fluoropolymers are approaching full utilization, prompting GFL to invest in additional capacities, which are expected to cater predominantly to higher-end grades and support the management’s targeted 18–20% annual growth in the fluoropolymers business going forward. On the fluorochemicals front, the incremental R32 capacity is expected to be commissioned in Q2FY27, while the company is also setting up R134a capacity at an existing refrigerant manufacturing site, making it a brownfield expansion targeted for commissioning within FY27. In battery materials, management reiterated its expectation of achieving a three-digit quarterly revenue run-rate by Q4FY27, followed by a significant scale-up in FY28 as qualification and commercialization processes progress. For FY27, the company has maintained its planned Capex of ~ ₹2,300 crore for the battery-materials business and around ₹800 crore for the chemical businesses. Overall, with healthy growth across all sectors is expected over the next few years, we maintain a positive stance on the company.

Impact: Positive

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