Gujarat Fluorochemicals (FLUOROCHEM) Q4 24/25 earnings summary

Executive summary

• Q4 FY25 revenue from operations reached INR 1,225 crore, up 8% year-on-year, with EBITDA rising 28% to INR 305 crore and margins improving to 25% from 21% last year.

• PAT for Q4 FY25 stood at INR 191 crore, nearly doubling year-on-year, including a INR 29 crore deferred tax liability reversal; net debt reduced to INR 1,451 crore, improving net debt to equity from 0.3 to 0.2.

• Growth was driven by fluoropolymers and fluorochemicals, while bulk chemicals underperformed due to a plant incident and softening prices.

• Significant CapEx of INR 1,600 crore announced for FY2026, with INR 1,200 crore for EV battery materials and INR 400 crore for fluoropolymers and refrigerants.

• Major restructuring completed, including wind business demerger and new subsidiaries for green and specialty chemicals.

Financial highlights

• Q4 FY25 revenue: INR 1,225 crore (up 8% YoY); EBITDA: INR 305 crore (up 28% YoY, margin 25%); PAT: INR 191 crore (up 89% YoY, margin 16%).

• Annual FY25 revenue: INR 5,685 crore; EBITDA: INR 2,047 crore (36% margin); PAT: INR 1,323 crore (23% margin).

• Net debt reduced by over INR 300 crore year-over-year.

• Working capital days increased due to inventory build-up in anticipation of demand.

• One-time reversal of deferred tax liability of INR 29 crore lowered tax rate in the quarter.

Outlook and guidance

• Expecting 25% year-on-year growth in fluoropolymers, with continued momentum in core business.

• EV battery materials business to see revenue ramp-up in H2 FY2026, with further acceleration in FY2027.

• Refrigerant segment to grow, with R32 commercial sales targeted for H2 FY2026.

• Bulk chemicals segment expected to normalize as plant resumes and prices stabilize.

• Focus on core chemicals and green chemistry initiatives.