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Gujarat Fluorochemicals Ltd
NSE: FLUOROCHEM BSE: 542812 INE09N301011 Commodities Energy 🔎 Screen
NIFTY 500 Midcap 150
₹50,545 Cr
Market Cap
82.4
P/E
2.29
PEG
9.6%
ROCE
7.8%
ROE
0.29
D/E
25.8%
OPM
-7.2%
% from 52W High
81
α RS
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📈 Price History
Ratio Health
Excellent
Good
Average
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By Category
Shareholding
About

Incorporated in 2018, Gujarat Fluorochemicals Limited, earlier known as Inox Fluorochemicals Limited, is a part of the INOX Group of Companies and has been demerged from GFL Ltd, into a separate legal entity. It is one of the leading producers of Fluoro-polymers, Fluoro-specialities, Chemicals and Refrigerants in India. It is one of the top five global players in the fluoropolymers market with exports to Europe, Americas, Japan and Asia.

✓ Strengths

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! Concerns 4
  • Stock is trading at 6.67 times its book value
  • Company has a low return on equity of 7.94% over last 3 years.
  • Company might be capitalizing the interest cost
  • Dividend payout has been low at 6.44% of profits over last 3 years
Key Ratios Snapshot
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Mixed — chemical segment was strong (EBITDA +29% YoY) but deepening battery materials losses kept consolidated margins flat. quarter Investor Presentation One-Pager? Jun 2026
Revenue
₹1,588 Cr
+24% YoY (₹1,281 Cr); sequentially +16% from Q4FY26 ₹1,369 Cr
EBITDA Margin
27%
Flat YoY (+10 bps); Chemical segment margin was 29%, up 146 bps
PAT
₹219 Cr
+20% YoY (₹182 Cr); Chemical PAT ₹261 Cr (+33%), Battery PAT -₹42 Cr
Key Metric
Battery Materials PAT -₹42 Cr
Loss widened from -₹14 Cr YoY; Battery EBITDA -₹30 Cr vs -₹10 Cr
What Went Right
  • Chemical segment revenue grew 23% YoY to ₹1,574 Cr and EBITDA grew 29% to ₹458 Cr, with EBITDA margin up 146 bps to 29%.
  • Fluorochemicals revenue surged 52% YoY / 44% QoQ, driven by R32; Fluoropolymers grew 15% YoY with better product mix.
  • ROCE improved 258 bps to 16.63%, ROE improved 301 bps to 15.18%, and working capital days fell 43 days to 149 from 192 in March 2026.
  • Consolidated PAT grew 20% YoY to ₹219 Cr despite battery start-up losses; chemical PAT grew 33% YoY to ₹261 Cr.
  • Battery materials booked initial revenue of ₹14 Cr, and all phase-I battery capacity is commissioned with anchor client contracts in place.
What to Watch
  • Battery materials losses widened sharply: EBITDA -₹30 Cr vs -₹10 Cr and PAT -₹42 Cr vs -₹14 Cr YoY, offsetting part of the chemical earnings growth.
  • Despite chemical EBITDA margin improving 146 bps, consolidated EBITDA margin was flat at 27% and consolidated PAT margin stayed flat at 14%.
  • Bulk chemicals was sluggish: revenue rose only 11% YoY and 1% QoQ, with chloromethanes expected to remain range-bound.
  • Battery revenue of ₹14 Cr is tiny against the ₹6,000 Cr capex commitment and provides no evidence yet of the projected 25%+ EBITDA margin.
Management Guidance
  • Battery materials target: total capex of ₹6,000 Cr by FY28, 2x asset turnover, and 25%+ EBITDA margin.
Investor Lens
The chemicals thesis remains intact — R32-led fluorochemicals (+52% YoY revenue) and fluoropolymers (+15% YoY) drove a 146 bps chemical margin expansion to 29%. The main negative is the battery materials drag: it consumed ₹42 Cr of PAT versus ₹14 Cr last year, leaving consolidated margins flat despite strong chemical performance. Watch whether battery losses peak as LFP/binder commercial sales begin and LiPF₆ customer commercialization progresses; management's ₹6,000 Cr capex and 25%+ EBITDA target implies a scale that current ₹14 Cr revenue has not yet demonstrated. Working capital improvement (-43 days to 149) and ROCE/ROE step-ups are genuine positives, but consolidated returns are still held back by the EV business. Next quarter, track battery segment revenue ramp and loss trajectory, R32 pricing/capacity, and bulk chemical demand.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Revenue up 24% YoY to ₹1,588 Cr; PAT ₹219 Cr, +20%
Revenue
Revenue for Jun 2026 quarter came in at ₹1,588 Cr, up 24% YoY from ~₹1,281 Cr. Sequentially, revenue rose 16% from ~₹1,369 Cr in Mar 2026, indicating strong demand momentum.
Profitability
Net profit grew 20.3% YoY to ₹219 Cr, with EPS rising to ₹20.12 from ₹16.57. Sequentially, PAT surged 119%, helped by higher revenue and improved operating margins. PBT stood at ₹310 Cr with a 29% tax rate.
Margins
Operating profit margin held at 27% YoY, but expanded sharply from 22% in Mar 2026. Operating profit rose 23.8% YoY to ₹426 Cr, reflecting stable profitability despite rising costs.
Balance Sheet
Debt-to-equity is low at 0.29x, indicating a conservative leverage profile. ROCE of 9.86% and ROE of 7.78% suggest moderate capital efficiency in a capital-intensive commodities business.
Key Risks
The stock trades at a high PE of 85.17x, leaving little room for earnings disappointment. ROE/ROCE below 10% highlight capital efficiency constraints, and commodity price movements could pressure the 27% OPM.
Outlook
Strong 24% YoY revenue growth and a 5ppt sequential margin recovery point to a positive operating trajectory. Sustaining volume growth and keeping OPM above 27% will be crucial to support current valuations.
Generated by AI · Jun 2026 results · Not investment advice
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Revenue by Segment

Segment Q2FY26 Q3FY26 Trend
Chemicals
1,215
EBIT 301
1,148
EBIT 190
EV Products
3
EBIT -22
14
EBIT -14
Total 1,218 1,162

Source: NSE Integrated Filing XBRL (Reg. 33 Ind AS). Values in ₹ Crore.

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Investment Risk:
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The author and/or analyst may currently hold or have previously held positions in the securities or financial instruments discussed in this report. Any such positions, if material, are disclosed to the best of the author's knowledge and are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company, institution, or third party.

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The analysis and opinions expressed herein are based on publicly available information, including but not limited to company filings with the BSE/NSE, annual reports, management commentary, investor presentations, data from the Reserve Bank of India (RBI), SEBI, industry publications, and other reliable financial data sources. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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