Gujarat Fluorochemicals Ltd (BOM:542812) Q3 2026 Earnings Call Highlights: Navigating …

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Sat, February 14, 2026 at 10:03 AM GMT+9 3 min read

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**Revenue:** INR 1,136 crore, a marginal decline of 1% year on year.

**EBITDA:** INR 283 crore, a 7% decline from INR 304 crore in Q3 FY25.

**Fluoropolymer Segment Growth:** 14% year on year, though revenue declined 3% sequentially.

**Fluorochemicals Revenue Decline:** 33% year on year and 24% sequentially.

**IFC Investment in Battery Materials:** INR 430 crore in GFCL EV Products Limited.

**Sovereign Fund Investment in Battery Materials:** USD 82 million approved.

**Investment in Oman Battery Materials Project:** USD 216 million.

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Release Date: February 12, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

The reduction in US tariffs from 50% to 18% is expected to restore competitiveness and support recovery in volumes, pricing stability, and margin expansion.

Demand in the fluoropolymers segment remains strong, particularly from the semiconductor sector, which is expected to support volume growth.

The company is witnessing increasing momentum in the EV ESS segments globally, with improving order inflows and better visibility for FY27.

The International Finance Corporation (IFC) has approved an investment of INR430 crore in the company's subsidiary, supporting the development of India's first integrated battery materials manufacturing facility.

The company is setting up a state-of-the-art greenfield advanced battery materials project in Oman, with an estimated investment of USD 216 million, to produce battery materials for lithium-ion batteries.

Negative Points

The quarter was challenging due to seasonal weakness in the Refrigerant segment and continued uncertainty around the US tariff situation.

Revenue for the quarter stood at INR1,136 crore, a marginal decline of 1% year on year.

EBITDA declined by 7% from INR304 crore in Q3 FY25 to INR283 crore in Q3 FY26, primarily due to the refrigerant portfolio facing multiple headwinds.

R-22 production faced a dual impact of production quota reduction and seasonally subdued demand, affecting volumes and profitability.

The delay in R-32 production start-up resulted in lower-than-expected profitability, and R-125 prices remained weak during the quarter.

Q & A Highlights

Q: Can you provide details on the R-32 plant commissioning and capacity plans? A: Dr. Bir Kapoor, Deputy Managing Director and Executive Director, explained that the R-32 plant is being commissioned in phases, starting with a capacity of 20,000 tonnes. The initial phase was delayed but is now operational, with plans to ramp up. The long-term goal is to reach 30,000 tonnes by December 2027.

Story Continues  

Q: How is the fluoropolymer segment performing, and what are the growth expectations? A: Kapil Malhotra, Business Head of Fluoropolymers, noted that while the segment grew 14% year-on-year, it faced challenges due to US tariffs and antidumping duty issues. Growth is expected to pick up, driven by demand from the semiconductor industry and new applications in elastomers.

Q: What is the outlook for the battery materials business, particularly for FY27 and FY28? A: Dr. Bir Kapoor stated that the battery materials segment is expected to see significant growth in FY27 and FY28. LiPF6 production has commenced, and LFP cathode active material is in the qualification process. The company anticipates full utilization of current capacities by the end of FY28.

Q: Can you elaborate on the strategic advantages of the Oman project for battery materials? A: Dr. Bir Kapoor highlighted that the Oman project benefits from strategic location advantages, including FTAs with the US and India, and access to raw materials and skilled labor. The project is part of the company’s global supply chain strategy.

Q: What are the company’s plans regarding working capital management? A: Dr. Bir Kapoor mentioned that the company aims to reduce working capital days to around 170-180, down from the current level of 200. This is part of their strategy to improve capital efficiency while maintaining a stock-and-sell business model.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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