SYNOPSIS –
Gujarat Fluorochemicals, a leading global fluorine-based products manufacturer, is set for growth with diversified offerings, expanding EV initiatives, and a 42 percent capex increase, supporting long-term energy and chemical solutions.
This leading chemical company in India, and a leading global manufacturer of fluorine-based products, is worth watching closely. We’re talking about Gujarat Fluorochemicals Limited, a key entity within the INOXGFL Group, which is engaged in the business of manufacturing bulk chemicals, fluorochemicals, fluoropolymers, battery chemicals, and allied activities.
The company’s diverse offerings encompass fluoropolymers such as PTFE, PVDF, and FKM, in addition to fluoro-specialty chemicals, refrigerants, and industrial chemicals. These products serve a wide array of industries, including pharmaceuticals, agrochemicals, and automotive.
In this article, we’ll take a closer look at the company’s financial performance, business verticals, future outlook, capex, and other critical factors that position it for its growth.
With a market cap of Rs. 41,002.6 crores, shares of Gujarat Fluorochemicals Limited is currently trading in the green at Rs. 3,732.6 on Friday. The stock has delivered negative returns of over 13 percent in one year, but has gained by around 9 percent in the last one month.
Business Verticals & Outlook
Gujarat Fluorochemicals has three manufacturing facilities in India, a Fluorspar mine in Morocco, and additional facilities and warehouses in Europe, the USA, and the Middle East. It is the largest integrated Fluoropolymer producer in India and ranks among the top producers globally, serving as a key supplier of Fluoropolymers to Europe and USA.
The company’s facilities include the Ranjit Nagar plant in Gujarat, which houses the largest refrigerant capacity in India and produces specialty chemicals and refrigerants; the Dahej plant in Gujarat, the largest Fluoropolymer facility in the country producing specialty and bulk chemicals; and the Jolva plant in Gujarat, which is in the process of phased commissioning for fluoropolymers, specialty, and new-age chemicals.
The company is expanding its presence in emerging energy sectors through its wholly-owned subsidiaries—GFCL EV, which focuses on developing chemicals and Fluoropolymers for EV and energy storage batteries, and GFCL-SGHP, which works on solutions for solar panels and hydrogen fuel cells.
In the Fluoropolymer segment, the company achieved its highest-ever revenue of Rs. 798 crores in Q1 FY26, supported by increased volumes and a favourable product mix, with new high-purity fluoropolymer grades gaining approvals and orders in sectors such as semiconductors, aerospace, and automotive.
In the Fluorochemicals segment, commercial production of R32 was launched several quarters ahead of schedule with minimal capital investment, completing the company’s range of refrigerant products. Though this segment faced a decline due to reduced sales of R410A and R125 in the USA, improving R22 prices and global production cuts are expected to support growth, while specialty chemicals remained stable and are forecasted to strengthen.
The Bulk Chemicals segment experienced a QoQ decline in revenue due to lower Caustic Soda prices and a planned CMS shutdown, with full-capacity operations expected to resume in Q2 FY26 and prices anticipated to remain stable.
In Battery Materials, GFCL EV’s product samples have been either approved or are in advanced qualification stages at over 85 percent of global potential customers, with the LFP plant’s pre-commissioning completed and the pilot plant operational for developing customer-specific grades.
Demand for energy storage solutions (ESS) is expected to grow in the medium and long term, driven by the need for energy backup in AI data centres and resilient infrastructure, despite near-term disruptions caused by global delays in battery plant installations. Overall, these developments position the company for steady and sustainable growth across its business verticals.
Management Comments & Capex
The management remains highly confident and optimistic about the outlook across all core segments. There is strong visibility on fluoropolymer growth, with the 25 percent growth guidance remaining on track.
In terms of revenue, initial contributions from new initiatives are expected to “trickle in” from the second half of FY26, with a more meaningful ramp-up and scaling anticipated in FY27 as customer qualification processes are completed.
The company’s capex was Rs. 1,050 crores in FY24 and increased to Rs. 1,125 crores in FY25, comprising Rs. 550 crores allocated to GFL’s core operations and Rs. 575 crores to the EV segment.
For FY26, the total capex is projected at Rs. 1,600 crores, reflecting a 42 percent growth over the previous year, with Rs. 400 crores allocated to GFL and Rs. 1,200 crores for the EV business. The capex for EV has been supported by a Rs. 1,000 crore equity raise at a Rs. 25,000 valuation within the EV subsidiary, while further capital expenditure is expected to be funded internally through the EV business.
Financial Performance
In Q1 FY26, Gujarat Fluorochemicals reported a consolidated revenue from operations of Rs. 1,281 crores, a marginal growth of around 5 percent QoQ and 9 percent YoY.
Similarly, the company’s net profit for the quarter stood at Rs. 184 crores, representing a drop of nearly 4 percent QoQ but a significant rise of around 70 percent YoY.
Total segment revenue for the quarter stood at Rs. 1,288 crore. The Chemicals segment was the largest contributor, generating Rs. 1,287 crore, accounting for 99.9 percent of the total revenue. The EV Products business followed with Rs. 1 crore (0.07 percent).
In terms of financial ratios, Gujarat Fluorochemicals has reported a RoE of 8.29 percent and ROCE of 9.89 percent, with a debt-to-equity ratio of 0.29. Further, the stock is currently trading at a P/E of 65.9, compared to the industry average of 32.5.
Written by Shivani Singh
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