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View Promises →Gujarat Fluorochemicals Limited — Q2 FY26
GFL delivered a resilient Q2 FY26 with chemical segment revenue of INR 1,210 crore (+2% YoY) and EBITDA of INR 381 crore (+26% YoY), driven by better product mix and cost optimization.
bullish
high
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GFL delivered a resilient Q2 FY26 with chemical segment revenue of INR 1,210 crore (+2% YoY) and EBITDA of INR 381 crore (+26% YoY), driven by better product mix and cost optimization. EBITDA margin expanded 608 bps YoY to 32%, aided by higher-value fluoropolymer sales and lower power costs. PAT grew 51% YoY to INR 198 crore. Fluoropolymer revenue rose 8% YoY but declined 4% QoQ due to US tariff uncertainty; management expects H2 recovery. Battery materials business is progressing: LiPF6 prices surged to $17/kg, LFP CAM plant commissioned, and commercial sales expected soon. R32 capacity expansion to 20,000 MT by March 2026 remains on track. Key risk: sustained US tariffs could pressure new fluoropolymer margins and delay volume recovery.
GFL ने दूसरी तिमाही में मजबूत प्रदर्शन किया। रसायन कारोबार से आय 1,210 करोड़ रुपये रही, जो पिछले साल से 2% ज्यादा है। कंपनी का मुनाफा (EBITDA) 381 करोड़ रुपये रहा, जो 26% बढ़ा। इसकी वजह बेहतर उत्पाद मिश्रण और लागत में कमी है। मुनाफे की दर (EBITDA मार्जिन) 32% हो गई, जो पिछले साल से 6.08% ज्यादा है। कुल मुनाफा (PAT) 51% बढ़कर 198 करोड़ रुपये हुआ। फ्लोरोपॉलीमर की बिक्री 8% बढ़ी, लेकिन अमेरिकी टैरिफ अनिश्चितता के कारण पिछली तिमाही से 4% घटी। कंपनी को दूसरी छमाही में सुधार की उम्मीद है। बैटरी सामग्री कारोबार में प्रगति हो रही है। LiPF6 की कीमत 17 डॉलर प्रति किलो हो गई। R32 क्षमता बढ़ाने का काम मार्च 2026 तक पूरा होगा। जोखिम: अमेरिकी टैरिफ से फ्लोरोपॉलीमर मुनाफा दबाव में आ सकता है।
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Sustained US tariffs on new fluoropolymers
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Fluoropolymer Revenue Growth (YoY)
8%
+8% YoY
Fluoropolymer segment revenue grew 8% year-on-year, though declined 4% sequentially due to US tariff impact.
LiPF6 Price Range
$10-17/kg
+70%
LiPF6 prices moved from $10/kg to $17/kg, improving outlook for battery materials business.
R32 Capacity Target
20,000 MT
N/A
Management reaffirmed target to reach 20,000 MT R32 capacity by end of FY26, despite a recent fire incident.
PTFE Import Market Share Target
50-60%
N/A
With anti-dumping duty on PTFE, GFL expects to capture 50-60% of the 7,000 MT Indian import market.
What Changed vs Last Quarter
NEW
Fluoropolymer revenue growth of 25% for FY26
Management reiterated 25% growth guidance for fluoropolymer segment, expecting H2 recovery despite tariff headwinds.
NEW
Battery materials EBIT break-even in FY27
Management expects battery materials business to reach EBIT break-even in FY27.
NEW
CapEx of ~INR 1,500 crore for battery materials in FY27
Battery materials CapEx expected to be ~INR 1,500 crore in FY27, part of the INR 6,000 crore 4-5 year plan.
UPDATED
R32 capacity of 20,000 MT by March 2026
R32 capacity expansion to 20,000 MT by end of FY26 remains on track; plant restart expected by end of November.
DROPPED
Fluoropolymer segment to grow 25% in FY26
Management expects 25% revenue growth in Fluoropolymer for FY26, driven by new approvals and legacy player exit.
DROPPED
Renewable energy savings of INR 150 crore from FY27
Full benefit of INR 150 crore annual savings from renewable energy project will be realized in FY27.
DROPPED
Battery chemicals revenue to ramp up meaningfully from FY27
Battery chemicals revenue will start trickling in H2 FY26, with significant ramp-up expected in FY27 as qualifications complete.
NEW RISK
Sustained US tariffs on new fluoropolymers
Higher US tariffs have caused customer delays and may compress margins if not fully passed through; management is exploring alternative markets.
NEW RISK
R32 plant fire incident
A fire at the R32 plant caused a temporary shutdown; while management expects to resume by end of November, any further delays could impact capacity ramp-up.
NEW RISK
Battery materials qualification delays
Customer qualification for LiPF6, LFP CAM, and binders is ongoing; any delays could push commercial sales beyond current expectations.
NEW RISK
Dependence on Chinese iron phosphate supply
LFP CAM currently relies on Chinese iron phosphate; future US regulatory tightening on foreign entities could impact supply chain compliance.
RISK GONE
US tariff impact on new Fluoropolymer exports
Additional 15% US tariff (total 25%) applies to new Fluoropolymer products; management believes pass-through is feasible but may face resistance.
RISK GONE
R32 pricing sustainability
Analyst questioned if R32 prices could soften like R125; management expects prices to remain firm but acknowledged difficulty in projection.
RISK GONE
Battery chemicals revenue delay
Battery chemicals revenue is expected to be meaningful only from FY27; near-term contribution remains negligible, posing risk to growth expectations.
RISK GONE
Legacy player exit benefits may be slower than expected
While management sees benefits from legacy player exit, the impact on volumes and pricing may take longer to materialize fully.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q2 FY25, Q3 FY25
Commodity-grade PTFE continues to face pricing pressure from low-cost Chinese suppliers, and additional MDC capacity in India could keep prices muted.
Mentioned in Q1 FY26, Q4 FY25
Battery chemicals revenue will start trickling in H2 FY26, with significant ramp-up expected in FY27 as qualifications complete.
Mentioned in Q1 FY25, Q2 FY25
Management expects initial commercial supplies of battery materials (salt, electrolyte, etc.) to start from Q4 FY25, following customer qualifications.
Mentioned in Q1 FY25, Q3 FY25
Management expects to achieve full capacity utilization in the fluoropolymer segment by the end of FY26, driven by new product qualifications and market demand.
Mentioned in Q1 FY26, Q2 FY25
While management sees benefits from legacy player exit, the impact on volumes and pricing may take longer to materialize fully.
Fast read
Guidance and risk preview
Management reiterated 25% growth guidance for fluoropolymer segment, expecting H2 recovery despite tariff headwinds.
Higher US tariffs have caused customer delays and may compress margins if not fully passed through; management is exploring alternative markets.
View Risks →