Will Gujarat Fluorochemicals Maintain Its Momentum in Fluoropolymer Expansion?
About Gujarat Fluorochemicals
Gujarat Fluorochemicals Limited (GFL) operates across fluoropolymers, specialty chemicals, and refrigerant gases. The company continues to benefit from its early-mover advantage in green chemistry and new-age applications like EV batteries and solar films.
Q2 FY26 showed revenue resilience backed by demand for PVDF and new-generation refrigerants despite global slowdown.
Financial Highlights (Q2 FY26)
| Metric | Q2 FY26 | YoY |
|---|---|---|
| Revenue | ₹1,650 Cr | +12% |
| EBITDA | ₹410 Cr | +10% |
| EBITDA Margin | 24.8% | -30 bps |
| Net Profit | ₹265 Cr | +9% |
Revenue ₹1,650 Cr — driven by growing global PVDF demand.
EBITDA ₹410 Cr — sustained by strong mix of fluoropolymers.
EBITDA Margin 24.8% — high value-added products keep profitability firm.
Net Profit ₹265 Cr — aided by operational leverage and better product realisation.
Track near-term momentum via Nifty Momentum Tip.
Peer Comparison
| Company | Revenue (₹ Cr) | EBITDA Margin |
|---|---|---|
| GFL | 1,650 | 24.8% |
| Navin Fluorine | 1,410 | 22.1% |
| SRF | 4,200 | 23.5% |
GFL outperforms on margin resilience and technological leadership.
Strengths & Weaknesses
Strengths
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Weaknesses
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High entry barriers and diversification sustain business stability.
Opportunities & Threats
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Strategic capex ensures long-term competitiveness and sustainable margins.
Valuation & Investment View
- Short-term: Consolidating with positive outlook.
- Medium-term: Strong on rising PVDF volumes.
- Long-term: Excellent; robust export-led growth story.
See also BankNifty Momentum Tip for correlated trades.
Valuations remain justified given strong cash flow generation and niche positioning.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, notes that GFL’s early lead in fluoropolymer expansion ensures long-term earnings visibility. Explore more at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided is for informational purposes only.
