Gujarat Fluorochemicals (FLUOROCHEM) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 consolidated revenue reached INR 1,281 crore, up 9% year-on-year and 5% quarter-on-quarter, with PAT up 70% year-on-year to INR 184 crore, driven by strong Fluoropolymer performance and improved product mix.

• Segmental reporting commenced, with EV Products now reported separately, reflecting strategic focus on battery chemicals and allied activities.

• Commercial production of R32 refrigerant commenced ahead of schedule, expanding the product portfolio.

• Battery materials business faces short-term delays due to global battery plant setups, but long-term prospects remain robust.

• Management remains focused on working capital reduction, achieving a decrease from 188 to 167 days.

Financial highlights

• Chemical segment revenue rose 9% year-on-year to INR 1,280 crore; EBITDA grew 33% to INR 354 crore, with margin up to 28%.

• Consolidated EBITDA increased 31% year-on-year to INR 344 crore, with margin improving to 27%.

• PAT for the quarter was INR 184 crore, up 70% year-on-year.

• Operating margin improved to 20.35% in Q1 FY26 from 15.69% in Q1 FY25.

• Net worth increased to INR 7,497 crore as of June 30, 2025.

Outlook and guidance

• Fluoropolymer business expected to achieve 25% growth for FY26, with optimal capacity utilization by year-end.

• Commercial production of R32 refrigerant to start in Q2 FY26, targeting 20,000 MT capacity by year-end.

• Battery materials segment poised for significant ramp-up, with meaningful revenue expected from FY27.

• Renewable energy project savings to fully accrue from FY27, with partial benefits starting Q3 FY26.

• Bulk chemicals production expected to run at full capacity in Q2 FY26, with stable prices anticipated.