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.

M/s Patankar & Associates has resigned as the statutory auditor of GFCL EV Products Limited, a material subsidiary of Gujarat Fluorochemicals Limited , effective from the conclusion of the forthcoming Fifth Annual General Meeting. The resignation enables the subsidiary to comply with a Shareholders Agreement with International Finance Corporation, which mandates the appointment of a Big Five Accounting Firm. The subsidiary proposes to appoint Walker Chandiok & Co LLP as the new statutory auditor subject to requisite approvals.

The resignation was intimated to the stock exchanges on May 29, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. M/s Patankar & Associates was appointed on September 26, 2022, for a term of five years concluding with the Sixth Annual General Meeting to be held in 2027. The firm confirmed that it has completed the statutory audit for FY 2025-26 and submitted an unmodified audit report dated May 25, 2026.

Reason for Resignation

The primary reason for the resignation is to facilitate a transition to a Big Four auditor as required by the Shareholders Agreement between GFCL EV Products Limited and International Finance Corporation. The auditor confirmed there are no other reasons for the resignation and stated that no concerns were raised prior to the decision.

Auditor Details

The table below outlines the details of the outgoing auditor and their association with the company.

The subsidiary has stated that the change is intended to ensure a smooth transition process and adherence to the terms agreed upon with its investor. The resignation letter and requisite disclosures have been attached to the regulatory filing.