Gujarat Fluorochemicals Limited has expanded its international footprint through the incorporation of a step-down subsidiary in Oman. The company announced that its material subsidiary, GFCL EV Products Limited, has established GFCL EV New Age Materials SAOC as a Closed Joint Stock Company. This strategic move aims to bolster the group's presence in the battery chemicals sector, a key growth area for the organization.

The newly formed entity, GFCL EV New Age Materials SAOC, is based in Oman and has yet to commence its operations. Its primary business focus will be the manufacturing and trading of battery chemicals. This initiative aligns with the parent company's broader objectives to diversify and strengthen its material business verticals globally.

The shareholding structure of the new subsidiary has been finalized with specific contributions from key stakeholders. GFCL EV Products Limited holds the majority stake, ensuring control over the new venture. The incorporation was executed via a cash consideration model, with initial subscriptions made by the parent entity and other investors.

The following table outlines the shareholding distribution and the initial subscription amounts for the step-down subsidiary:

The disclosure was made to the stock exchanges pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Bhavin Desai, Company Secretary of Gujarat Fluorochemicals Limited, signed the filing on June 3, 2026. The company confirmed that no specific regulatory approvals were required for this incorporation, as the entity is newly formed for business development.

Gujarat Fluorochemicals Limited has earmarked a capital expenditure of ₹3,150 crore for FY27, comprising ₹2,300 crore for its battery materials business and ₹850 crore for its core chemicals segment. The announcement was made during a conference call held on May 26, 2026, to discuss the financial results for Q4FY26. The company reported a 32% decline in consolidated profit after tax (PAT) to ₹112 crore for the quarter, compared to ₹162 crore in the corresponding period of the previous year. Revenue from operations increased by 12% year-on-year to ₹1,369 crore, while EBITDA remained flat at ₹308 crore.

The financial performance was impacted by exceptional items related to the implementation of the new labour code and prior-year tax adjustments. Consolidated EBITDA margins contracted by 248 basis points to 22.43% in Q4FY26. The company noted that Q4FY26 PAT was calculated before an exceptional item of ₹3 crore (net of tax) related to the new labour code implementation at the consolidated level. In the prior year, Q4FY25 PAT included a gain of ₹29 crore due to the utilisation of brought forward capital losses and a lower tax rate on capital gains from slump-sale.

Business Vertical Performance

The Chemical Segment remained the primary growth driver, recording revenue of ₹1,358 crore for the quarter, an 11% increase from ₹1,225 crore in Q4FY25. The segment's EBITDA rose 13% to ₹353 crore, with margins expanding by 52 basis points to 26%. PAT for the segment stood at ₹169 crore, a 5% increase over the previous year. However, the Battery Materials vertical continued to face challenges, reporting an EBITDA loss of ₹45 crore and a net loss of ₹57 crore for the quarter. The Chemical Segment's robust performance was offset by the losses in the Battery Materials business, as the company continues to focus on its integrated operations and strategic foray into high-growth battery materials, leveraging its decades of fluorine chemistry expertise.

Capital Expenditure Plans

Management outlined that of the ₹850 crore capex for the chemicals business, approximately ₹150 crore will be spent on expanding refrigerant gas and related infrastructure capacities. ₹222 crore will be allocated to new high-purity electronic specialty chemicals for the semiconductor sector, while another ₹250 crore will be used for adding new fluoropolymer capacities. The remaining ₹230 crore will be spent on increasing capacities for backward integration, including regular annual maintenance capex. The company stated that the Fluoropolymers segment is reaching optimum utilization levels, necessitating further investment.

For the battery materials business, the ₹2,300 crore capex will be spent on increasing capacities across existing products, including natural graphite anode active material. This investment is part of the overall capex of ₹6,000 crore earmarked for GFCL EV. The company reported that initial capacities planned under phase one have been commissioned and contracted for, with marquee anchor customers secured across all battery material products. Commercial sales for LiPF6 salt are scaling up, and revenue for this product is expected for all of FY27. The company targets asset turns of nearly 2x and EBITDA margins of over 25% for the battery materials portfolio.

Sustainability and Certifications

The company highlighted its sustainability performance, noting an improvement in its S&P Global Corporate Sustainability Assessment (CSA) score to 69 from 44 in the previous year, placing it in the 95th percentile. Additionally, EcoVadis rated Gujarat Fluorochemicals in the Bronze category, positioning it among the top 35% of companies assessed with a score of 66 out of 100. The manufacturing facilities are certified under ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 standards.