Navin Fluorine International (532504) Q2 25/26 earnings summary

Executive summary

• Interim dividend of INR 6.5 per share (325% of face value) declared, reflecting strong performance and confidence in future growth.

• Robust growth achieved in Q2 and H1 FY26, with significant year-over-year increases in sales, EBITDA, and profitability across all business segments.

• Diversified business model with strong global presence, advanced R&D, and focus on specialty chemicals, HPP, and CDMO verticals.

• Major capital expenditures approved: INR 236.5 crore for HFC capacity expansion and INR 75 crore for debottlenecking a multi-purpose plant, both funded through internal accruals.

• Sustainability remains a core focus, with the third sustainability report released.

Financial highlights

• Q2 FY26 consolidated revenue rose 46% year-over-year to INR 758.42 crore; H1 revenue at INR 1,484 crore, up 42% year-over-year.

• Operating EBITDA for Q2 at INR 246.2 crore, up 129% year-over-year; margin improved to 32.5% from 20.7% last year.

• Profit after tax for Q2 at INR 148.4 crore, more than double the previous year; H1 PAT at INR 265.5 crore, up 141% year-over-year.

• Q2 operating PBT at INR 179.3 crore, up 173% year-over-year; H1 operating PBT at INR 320.5 crore, up 159% year-over-year.

• Basic EPS (consolidated) for Q2 FY26: INR 29.06; half-year EPS: INR 52.76.

Outlook and guidance

• FY26 EBITDA margin expected between 28%-30%, above original 25% guidance, driven by volume, pricing, and efficiency gains.

• Capex outflow for FY26 projected at INR 600-700 crore, with a multi-year capex frame of INR 1,000 crore.

• HFC capacity expansion and plant debottlenecking to be completed by Q3 FY27, targeting growing domestic and export demand.

• Strong order book and ongoing projects provide visibility for continued growth into FY27 and beyond.

• Capex projects expected to drive future growth, with commissioning targeted by Q3 FY27 and significant revenue potential.