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 performance in core chemical businesses, especially fluoropolymers and R32.

• EBITDA rose 24% YoY to INR 428 crore, with margin stable at 27%; PAT increased 20% YoY to INR 219 crore, with PAT margin at 14%.

• Total comprehensive income for the quarter stood at INR 210 crore.

• Ongoing capacity expansions and product mix improvements position the company for sustainable growth.

• Battery materials segment remains in early commercialization, with initial capacity commissioned and contracted.

Financial highlights

• Chemical segment revenue grew 23% YoY to INR 1,574 crore; EBITDA up 29% YoY to INR 458 crore.

• Bulk chemicals posted steady growth, up 11% YoY; fluorochemicals revenue surged 52% YoY, mainly due to R32 sales.

• Battery materials segment reported revenue of INR 14 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.

Outlook and guidance

• Confident in achieving 17%-20% annual growth in fluoropolymers, driven by volume and high-value products.

• Battery materials segment expected to see significant ramp-up by end of FY27 and into FY28.

• Full utilization of expanded R32 capacity anticipated in 2027, with strong global and domestic demand.

• Ongoing focus on executing capacity expansions, customer engagement, and scaling emerging platforms.

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