Gujarat Fluorochemicals (FLUOROCHEM) Q4 24/25 earnings summary

Executive summary

• Q4 FY2025 revenue from operations reached INR 1,225 crore, up 8% year-on-year, with EBITDA rising 28% to INR 305 crore and PAT nearly doubling to INR 191 crore; net debt reduced to INR 1,451 crore, improving net debt to equity from 0.3 to 0.2.

• Growth was driven by the fluoropolymers vertical and a better product mix, while bulk chemicals underperformed due to a plant incident and softening prices.

• Mechanical completion of the LFP plant achieved; LiPF6 salt production stabilized with capacity expansion underway.

• 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 FY2025 consolidated revenue: INR 1,225 crore (up 8% YoY), EBITDA: INR 305 crore (up 28% YoY), PAT: INR 191 crore (up 89% YoY), with EBITDA margin at 25%.

• Net debt reduced by over INR 300 crore year-over-year, with net debt to equity improving from 0.3 to 0.2.

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

• Power and fuel savings from captive plant expected to be INR 120–150 crore annually, with partial benefits in FY2026.

• 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.

• Specialty chemicals expected to see improved margins and volumes in FY26.