Gujarat Fluorochemicals Limited (GFL) announced its Q2 FY’26 results, showcasing revenue of ₹1,210 crores in the chemical segment, a 2% increase year-on-year. EBITDA grew by 26% to ₹381 crores, with margins at 32%, driven by better product mix and cost optimization. The company anticipates revenue from its EV materials business to commence in Q4 FY’26, further improving margins and profitability.
Financial Performance Highlights
In Q2 FY’26, Gujarat Fluorochemicals’ chemical segment reported revenue of ₹1,210 crores, up 2% year-on-year, despite tariff-related challenges in the US market. The company’s EBITDA increased by 26% to ₹381 crores, with EBITDA margins reaching 32%, a 608 basis points improvement. Profit After Tax (PAT) for the chemical segment stood at ₹198 crores, reflecting a 51% year-on-year growth. The EV materials business is expected to contribute to revenue starting in Q4 FY’26.
Segmental Performance
The Fluoropolymer segment’s revenue increased by 8% year-on-year, but declined 4% quarter-on-quarter due to higher US tariffs. The Fluorochemicals business saw a revenue decline of 15% year-on-year, mainly due to reduced R-22 sales and market conditions affecting R125. Speciality chemicals remained stable. Bulk chemical revenue increased due to higher Chloromethane prices. LiPF6 prices in the Battery Material business have risen significantly from $10/kg to $17/kg, positively impacting the outlook.
Battery Materials Business Update
GFL’s LFP CAM facility in India has been successfully commissioned. Sample dispatches for customer approvals from the commercial plant will commence soon. Commercial sales of binders are expected in the second half of Calendar Year 2026. The company is actively engaging with emerging cell manufacturers for Electrolyte, supporting evaluations and qualifications through customized samples. GFCL EV is positioned to emerge as a global leader in the Battery Material space.
Strategic Outlook and Growth Drivers
GFL is focused on capturing growth across its business segments, driven by demand for Fluoropolymers, Battery Materials, and R32. The company is confident in delivering sustained growth and long-term value for its stakeholders. The company expects the tariff issues to ease off going forward. Plans for 20,000 tons of R32 production by the end of the financial year remain intact, with strengthened safety systems. The company is targeting alternate markets to mitigate tariff impacts. The ₹1,200 crore CAPEX plan for EV is progressing well and the company anticipates spending approximately ₹1,500 crore next year. The company’s R32 capacity will be maximized to 30,000 tons, utilizing the R22 quota entitlement.
Source: BSE
