Gujarat Fluorochemicals (FLUOROCHEM) Q1 26/27 earnings summary

Executive summary

• Consolidated revenue for Q1 FY27 reached INR 1,588 crore, up 24% year-over-year and 16% sequentially, driven by strong demand and improved product mix in core chemical businesses, especially R32 and fluoropolymers.

• Consolidated EBITDA rose 24% YoY to INR 428 crore, with EBITDA margin stable at 27%.

• Consolidated PAT increased 20% YoY to INR 219 crore, with PAT margin at 14%.

• The company navigated a challenging global environment with supply chain disruptions and commodity price volatility, leveraging disciplined execution and operating leverage.

• Strategic focus remains on capacity expansion, customer engagement, and scaling emerging platforms, particularly in battery materials.

Financial highlights

• Chemical segment revenue rose 23% YoY to INR 1,574 crore; segment EBITDA up 29% to INR 458 crore; segment PAT up 33% to INR 261 crore.

• Battery materials/EV Products segment reported revenue of INR 14–29 crore, with negative EBITDA and PAT.

• Working capital days reduced by 43 days to 149 days quarter-on-quarter.

• Basic and diluted EPS for Q1 FY27 was INR 20.17, compared to INR 16.57 in Q1 FY26.

• Total expenses for the quarter were INR 1,288 crore, up from INR 1,057 crore in Q1 FY26.

Outlook and guidance

• FY 2027 is expected to be pivotal, with established businesses generating strong cash flows and battery materials providing new growth avenues.

• Capacity expansions in R32 and R134a refrigerants and new fluoropolymers are on track, with full utilization expected post-commissioning.

• Battery materials segment is projected to achieve significant revenue ramp-up by end-FY 2027 and into FY 2028.

• Composite Scheme of Arrangement involving demerger and amalgamation activities is progressing, pending regulatory approvals.

• New subsidiaries have been incorporated to expand into specialty chemicals, semiconductor devices, and battery chemicals.