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View Promises →Gujarat Fluorochemicals Limited — Q3 FY26
GFL's Q3 FY26 was challenging, with revenue of INR 1,136 crore (down 1% YoY) and EBITDA of INR 283 crore (down 7% YoY), impacted by seasonal weakness in refrigerants, U.S.
bearish
high
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GFL's Q3 FY26 was challenging, with revenue of INR 1,136 crore (down 1% YoY) and EBITDA of INR 283 crore (down 7% YoY), impacted by seasonal weakness in refrigerants, U.S. tariff uncertainty, and delayed R32 production startup. Fluoropolymers grew 14% YoY but faced sequential moderation due to cautious ordering. The refrigerant segment declined 33% YoY, with R22 quota cuts and weak R125 prices. Positively, U.S. tariffs were reduced from 50% to 18%, and R32 production has commenced, with a 20,000-ton phase expected by mid-2026. Battery materials saw early commercial traction: LiPF6 supplies began in December 2025 with repeat orders, and IFC approved INR 430 crore investment. A new Oman facility ($216 million) targets global markets. Guidance points to recovery in refrigerants and ramp-up in battery materials, but near-term headwinds persist. Key risk: slower-than-expected R32 ramp-up and prolonged weakness in R22/R125 pricing.
GFL की तीसरी तिमाही (Q3 FY26) मुश्किल रही। कंपनी की कमाई ₹1,136 करोड़ रही, जो पिछले साल से 1% कम है। मुनाफा (EBITDA) ₹283 करोड़ रहा, जो 7% घटा। इसकी वजहें हैं: रेफ्रिजरेंट्स (एसी-फ्रिज में इस्तेमाल गैस) की कमजोर मांग, अमेरिकी टैरिफ (आयात कर) में अनिश्चितता, और R32 गैस बनाने में देरी। फ्लोरोपॉलिमर (एक खास प्लास्टिक) की बिक्री 14% बढ़ी, लेकिन ऑर्डर कम होने से धीमी रही। रेफ्रिजरेंट सेगमेंट 33% गिरा, क्योंकि R22 गैस पर कोटा कट गया और R125 के दाम कमजोर हैं। अच्छी खबर: अमेरिकी टैरिफ 50% से घटकर 18% हो गया, और R32 का उत्पादन शुरू हो गया है। जून 2026 तक 20,000 टन बनाने की योजना है। बैटरी मटीरियल (जैसे LiPF6) की बिक्री शुरू हो गई है और दोबारा ऑर्डर मिल रहे हैं। कंपनी ने ₹430 करोड़ का नया निवेश मंजूर किया है। ओमान में नया प्लांट ($216 मिलियन) वैश्विक बाजार के लिए बनेगा। आने वाले समय में रेफ्रिजरेंट्स और बैटरी मटीरियल में सुधार की उम्मीद है, लेकिन फिलहाल चुन
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R32 ramp-up delays
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Read Transcript →Quarter Snapshot
Fluoropolymer Revenue Growth (YoY)
14%
+14% YoY
Fluoropolymer segment grew 14% year-on-year, driven by semicon demand, though sequentially down 3% due to tariff uncertainty.
Refrigerant Revenue Decline (YoY)
33%
-33% YoY
Refrigerant segment revenue fell 33% YoY due to R22 quota cuts, weak R125 prices, and delayed R32 startup.
U.S. Tariff Reduction
18%
-32pp
U.S. tariffs on GFL products reduced from 50% to 18%, restoring competitiveness in a key export market.
R32 Capacity Phase 1
20,000 tons
New
First phase of R32 capacity (20,000 tons) commissioned in February 2026, delayed from earlier target, with ramp-up ongoing.
What Changed vs Last Quarter
NEW
Battery materials capacities to be fully utilized by FY27 end
Current LiPF6, LFP CAM, and binder capacities expected to be fully utilized by end of FY2027, with revenue ramp-up through the year.
NEW
Oman battery materials facility to commission by mid-2027
Greenfield facility in Oman with $216 million investment expected to be commissioned in 18 months, i.e., mid to end of 2027.
NEW
Working capital days target of 170-180
Management targets reducing inventory-driven working capital days from current ~200 to 170-180 over the next year.
UPDATED
R32 capacity to reach 20,000 tons by mid-2026
First phase of R32 plant commissioned in February 2026; ramp-up to 20,000 tons expected by mid-2026, delayed by a quarter from earlier guidance.
DROPPED
Fluoropolymer revenue growth of 25% for FY26
Management reiterated 25% growth guidance for fluoropolymer segment, expecting H2 recovery despite tariff headwinds.
DROPPED
Battery materials EBIT break-even in FY27
Management expects battery materials business to reach EBIT break-even in FY27.
DROPPED
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.
NEW RISK
R32 ramp-up delays
R32 production startup was delayed due to a safety incident; further delays could impact refrigerant profitability and quota utilization.
NEW RISK
Prolonged weakness in R22 and R125 pricing
R22 prices continue to decline due to quota cuts and seasonal demand; R125 prices remain weak, pressuring refrigerant margins.
NEW RISK
Slow qualification of LFP cathode active material
LFP CAM qualification is at early stages; delays in customer approvals could push commercial revenue to FY28, as highlighted by analyst.
NEW RISK
Inventory buildup and working capital strain
Inventory days rose to ~200 due to tariff uncertainty and holiday season; elevated working capital could pressure cash flows if demand recovery is slow.
RISK GONE
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.
RISK GONE
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.
RISK GONE
Battery materials qualification delays
Customer qualification for LiPF6, LFP CAM, and binders is ongoing; any delays could push commercial sales beyond current expectations.
RISK GONE
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.
🤫 Topics management stopped discussing
Mentioned in Q2 FY25, Q2 FY26, Q3 FY25, Q4 FY25
Battery materials CapEx expected to be ~INR 1,500 crore in FY27, part of the INR 6,000 crore 4-5 year plan.
Mentioned in Q1 FY26, Q2 FY26, Q3 FY25, Q4 FY25
R32 capacity expansion to 20,000 MT by end of FY26 remains on track; plant restart expected by end of November.
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, Q2 FY26, Q4 FY25
Management reiterated 25% growth guidance for fluoropolymer segment, expecting H2 recovery despite tariff headwinds.
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.
Fast read
Guidance and risk preview
First phase of R32 plant commissioned in February 2026; ramp-up to 20,000 tons expected by mid-2026, delayed by a quarter from earlier guidance.
R32 production startup was delayed due to a safety incident; further delays could impact refrigerant profitability and quota utilization.
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