Gujarat Fluorochemicals (FLUOROCHEM) Q3 2025 earnings summary

Executive summary

• Q3 FY25 consolidated revenue reached INR 1,148 crores, up 16% year-over-year, with EBITDA at INR 294 crores (up 43% YoY) and PAT at INR 126 crores (up 58% YoY); EPS for the quarter was ₹11.47.

• Margin improvement was driven by a better product mix and sustained performance in the fluoropolymer vertical.

• Battery materials business advanced, with plants stabilized and LFP plant trial production expected in Q4 FY25.

• High CapEx in battery materials is impacting current profitability due to higher depreciation and interest, but this is expected to reverse as the segment ramps up.

• Profit before tax for Q3 FY25 stood at ₹175 crore, compared to ₹110 crore in Q3 FY24.

Financial highlights

• EBITDA margin improved to 26% in Q3 FY25 from 21% in Q3 FY24; PAT margin increased to 11% from 8%.

• Revenue for Q3 FY25 was INR 1,148 crores, up from INR 992 crores in Q3 FY24 and flat sequentially.

• Bulk chemicals operated at full capacity, with caustic soda and MDC prices improving during the quarter.

• Power cost reduction initiatives are expected to yield a 10-12% cost saving (~INR 100 crore) from FY26, with a new renewable energy PPA at INR 4/unit covering 80% of needs.

• Net worth as of December 31, 2024, was ₹7,103 crore, up from ₹5,839 crore a year earlier.

Outlook and guidance

• Fluoropolymer revenues and margins are expected to rise significantly from Q4 FY25, driven by the exit of a legacy player and new high-grade product qualifications.

• Specialty chemicals volumes are expected to pick up from Q4 FY25, and the EV battery materials business is projected to ramp up strongly.

• LFP plant commissioning is progressing, with trial production expected in Q4 FY25.

• Committed to INR 6,000 crores cumulative CapEx by FY28, targeting 2x asset turnover and ~25% EBITDA margins at optimal utilization.

• Composite scheme of arrangement involving demerger and amalgamation approved, effective April 1, 2025, subject to regulatory approvals.