Gujarat Fluorochemicals Limited (GFL) reported consolidated revenue of Rs. 1,136 crore for Q3FY26, a marginal 1% YoY decline. While the Chemical Segment faced pressures, leading to an EBITDA drop, the company is making strategic strides in the Battery Materials vertical, receiving significant funding approvals. The outlook remains positive, contingent on stabilization in the Fluorochemicals segment following the commencement of R-32 production.
Q3FY26 Financial Performance Summary
Gujarat Fluorochemicals Limited (GFL) announced its financial results for the third quarter of FY26, demonstrating resilience across its operations despite sector-specific challenges.
Consolidated Performance
- Consolidated Revenue from Operations stood at Rs. 1,136 crore, reflecting a 1% Year-on-Year (YoY) decline compared to Rs. 1,148 crore in Q3FY25.
- Consolidated EBITDA saw a 6% YoY decline, reaching Rs. 275 crore (down from Rs. 294 crore).
- Consolidated PAT was Rs. 115 crore, a 9% YoY decrease from Rs. 126 crore in the previous corresponding period.
Note: An exceptional item of Rs. 13 crore (net of tax) related to the new labour code implementation was added back to PAT in Q3FY26.
Chemical Segment Snapshot
The Chemical segment revenue was Rs. 1,133 crore, a slight 1% YoY fall. EBITDA declined by 7% YoY to Rs. 283 crore, primarily driven by performance in Fluorochemicals and Bulk Chemicals.
Business Vertical Deep Dive
Battery Materials Vertical: Investments and Progress
The Battery Materials vertical is accelerating strategic growth through significant investments:
- IFC Investment: On December 5, 2025, IFC approved an investment of Rs. 430 crore in the subsidiary GFCL EV Products Limited to develop India’s first integrated battery materials facility.
- Sovereign Fund: Another Sovereign fund approved an investment of approximately ~USD 82 million.
- Oman Project: A greenfield advanced Battery Materials project is being set up in Oman with an estimated investment of USD 216 million.
- LiPF6 Commercialization: Commercial supplies began in December 2025, with repeat orders already received in Q4FY26.
- LFP CAM: The plant has stabilized operations, and sample dispatches have commenced.
Fluoropolymers Segment
The segment reported revenue of Rs. 744 crore in Q3FY26, marking a 14% YoY growth from Rs. 651 crore in Q3FY25. Quarter-on-quarter, growth was flat despite seasonality due to European/US holidays and tariff deferment.
- The outlook anticipates volume growth following the signing of the US-India trade agreement, which is expected to support margin improvement.
Fluorochemicals Segment
This vertical experienced significant headwinds, with revenue declining 33% YoY to Rs. 195 crore (down from Rs. 293 crore in Q3FY25).
- The decline was attributed to lower R-22 consumption due to the Montreal Protocol, seasonal factors, and US tariff impacts on R-125 exports.
- Future Outlook: The commencement of R-32 production in February is highlighted as a significant milestone expected to strengthen revenue and profitability for R32 and R125.
Bulk Chemicals Segment
Revenue decreased by 7% YoY to Rs. 168 crore, primarily due to lower prices in Chloromethanes and Caustic Soda. However, the segment showed 6% growth quarter-on-quarter.
Operational Excellence and Strategy
Integrated Operations & Core Competencies
GFL emphasizes its vertically integrated facility, which is noted as crucial for maximizing value addition across its wide range of Fluoropolymers.
The company’s core competencies include:
- Integrated Plant Operations: Manufacturing facilities in India, a Fluorspar mine in Morocco, and warehouses in Europe, the USA, and the Middle East.
- R&D Strength: The company operates a DST approved Fluoropolymers Research and Application development centre and employs highly specialized researchers.
- Strategic Focus: Harnessing fluorine chemistry expertise for a Strategic Foray into High-Growth Battery Materials.
ESG and Sustainability
GFL maintains robust sustainability credentials, holding certifications like ISO 9001, ISO 14001, and ISO 45001. In ratings:
- The S&P Global ESG Score is 49/100 (Data Availability: High).
- The ESG Risk Rating is 25.2 (Medium Risk).
- EcoVadis awarded a Silver rating (Top 15%) in December 2024.
Key focus areas for sustainability include Optimizing Environmental Impact (conducting LCAs for Product Carbon Footprint) and Driving Efficiency & Resilience (energy efficiency upgrades).
Source: BSE
