Gujarat Fluorochemicals Limited (GFL) hosted its Q4 FY26 earnings call on May 26, 2026. The company reported a commendable performance, driven by growth in its Fluoropolymers and the commencement of R-32 production. GFL outlined significant capex plans for FY27, focusing on expanding its battery materials business and fluorochemicals segment. Management expressed confidence in sustained growth and long-term value creation for stakeholders.
Q4 FY26 Performance and Outlook
Gujarat Fluorochemicals Limited (GFL) held its Q4 FY26 earnings conference call on May 26, 2026. The company highlighted a challenging but resilient operating environment in FY26, impacted by global uncertainties. Despite these headwinds, GFL focused on disciplined execution and cost management, leading to a commendable performance in the chemicals business. For Q4 FY26, the chemicals business reported a revenue of INR1,358 crores, an 11% year-on-year increase, with EBITDA growing by 13% to INR353 crores and PAT rising 5% to INR169 crores compared to Q4 FY25.
Key Growth Drivers and Capex Plans
The company’s performance was primarily driven by the Fluoropolymers segment and the important milestone of commencing R-32 production in March 2026. Looking ahead, GFL has earmarked a substantial INR3,150 crores capex for FY27. Of this, INR2,300 crores will be allocated to GFCL EV (Battery Materials) and INR850 crores to GFL.
Segment-wise Capex Allocation (FY27)
- Refrigerant Gas & Infrastructure: Approximately INR150 crores
- Electronic Specialty Chemicals (Semicon): INR222 crores
- New Fluoropolymer Capacities: INR250 crores
- Backward Integration & Maintenance: INR230 crores
The EV segment’s capex, part of the overall INR6,000 crores planned for GFCL EV, will focus on expanding capacities across existing products and natural graphite anode active material. This strategic move aims to position GFL as a highly integrated battery materials platform.
Fluoropolymers Segment Performance
The Fluoropolymers segment demonstrated strong performance with revenues growing 19% year-on-year and 14% quarter-on-quarter to INR848 crores in Q4 FY26. This growth was attributed to value-added products, increased volumes, a focus on high-value specialty grades, and expanding global reach. GFL anticipates sustained demand for specialty fluoropolymers, driven by sectors like semiconductors, EVs, battery energy storage, and clean energy applications.
Fluorochemicals and R-32 Production
The commencement of R-32 production in March 2026 strengthens GFL’s refrigerant portfolio. The company expects increased production of R-32 to drive significant growth in this segment. Demand for refrigerants is projected to remain healthy, supported by rising penetration of air conditioning, commercial refrigeration, and cold chain infrastructure, along with the demand for AI data centers. The demand outlook for caustic soda and fluoromethane business is expected to remain stable in FY27.
Battery Materials Business Inflection Point
GFL views its battery materials business as being at an important inflection point, with strong demand driven by the global energy transition and accelerated investment in AI and machine learning infrastructure. All initial capacities under phase one have been commissioned and contracted. The company has secured marquee anchor customers for its battery material products, and commercial sales are scaling up. LiPF6 salt has received approvals from major global electrolyte players, and commercial sales are progressing. For cathode active material, initial samples have received approval, with final qualification expected by Q3 FY27, followed by commercial supply. GFL is also establishing a natural graphite anode active material facility to enhance its integration within the LFP battery cell value chain.
Financials and Future Projections
The company has invested approximately INR1,900 crores to INR2,000 crores in the EV business so far, with a plan to invest another INR2,300 crores in FY27. The full earnings potential from these investments is expected by FY29. Management expressed confidence in delivering sustained growth and long-term value, driven by disciplined scaling of its emerging growth platforms.
Q&A Highlights
During the Q&A session, management clarified that the fluoropolymer expansion would focus on new fluoropolymers, with existing capacities reaching optimal utilization. The R-32 capacity is being ramped up to 20,000 tons, with production already having started. Regarding battery chemicals, GFL is contracted for existing capacity, with revenue expected to ramp up significantly. The company also discussed its strategy for inventory management, particularly for the U.S. and German markets, to meet Just-In-Time customer requirements and mitigate increased voyage times.
Source: BSE
