Gujarat Fluorochemicals (FLUOROCHEM) Q4 25/26 earnings summary

Executive summary

• Q4 FY26 revenue grew 12% YoY to INR 1,369 crore, with chemical segment revenue at INR 1,358 crore and EBITDA up 13% YoY to INR 353 crore; consolidated PAT declined 32% YoY to INR 112 crore due to exceptional items and margin pressure.

• FY26 consolidated revenue reached INR 4,996 crore, with net profit at INR 574 crore and EBITDA at INR 1,291 crore.

• Strong fluoropolymer growth and commencement of R32 production supported segment performance.

• The company maintained disciplined execution and operational excellence amid a volatile global environment.

• Board recommended a final dividend of INR 3 per equity share for FY26, subject to AGM approval.

Financial highlights

• Fluoropolymer segment revenue rose 19% YoY and 14% QoQ to INR 848 crore in Q4 FY26, driven by higher volumes and value-added products.

• Chemical segment EBITDA margin improved by 52 bps YoY to 26%; consolidated EBITDA margin declined by 248 bps YoY to 22%.

• Battery materials business reached an inflection point, with all initial phase I capacities commissioned and contracted.

• LiPF6 salt received major global approvals; commercial sales and ramp-up underway, with orders secured for FY27 and beyond.

• Gross margin remained largely flat, with only a minor change of about half a percentage point.

Outlook and guidance

• Strong long-term outlook for fluoropolymers, supported by demand from semiconductors, EVs, energy storage, and clean energy.

• Battery materials revenue to ramp up in FY27, with LiPF6 contributing throughout the year and LFP CAM revenue starting after Q3.

• Refrigerant segment to see major growth from increased R32 production; demand expected to remain healthy due to global cooling infrastructure needs.

• CapEx guidance of INR 6,000 crore for EV business by FY28, targeting asset turns of 2x and EBITDA margins above 25%.

• The group continues to monitor regulatory changes, including new labour codes, and will adjust accounting as needed.