Gujarat fluorochemicals has received a rating reaffirmation from CRISIL Ratings Limited, maintaining its strong credit profile in the chemicals sector. The company announced this development through a regulatory filing dated March 27, 2026, pursuant to Regulation 30 of SEBI listing regulations.

Rating Details and Facility Overview

CRISIL Ratings has reaffirmed Gujarat Fluorochemicals' credit ratings across its bank facilities while making specific changes to its debt instrument ratings.

The rating withdrawal on the Rs. 50 crore non-convertible debentures occurred following their redemption upon maturity, aligning with CRISIL's standard policy on rating withdrawals for redeemed instruments.

Financial Performance Highlights

The rating reaffirmation factors in Gujarat Fluorochemicals' sustained healthy operating performance across key financial metrics. The company demonstrated resilience with revenue of Rs. 3,628 crore for the first nine months of fiscal 2026, compared with Rs. 3,512 crore for the corresponding period of fiscal 2025.

The operating margin recovery represents a significant improvement, reaching 30% in the second quarter of fiscal 2026 before experiencing some moderation in the third quarter due to weak demand from elevated US tariffs and holiday seasons in the US and Europe.

Business Segment Analysis

Gujarat Fluorochemicals' performance was supported by strong growth in the fluoropolymers segment during the first half of 2026, while other business segments showed subdued performance. The company's third-quarter performance faced constraints from production quota restrictions in the fluorochemicals business, which limited R-22 production volume.

The company's battery chemical business has seen substantial investment of approximately Rs. 1,700 crore as of January 2026, forming part of planned capital expenditure of Rs. 6,000 crore over the next 2-3 fiscals. However, this segment contributed minimal revenue and profitability during the first nine months of fiscal 2026.

Financial Risk Profile and Debt Management

CRISIL noted the company's healthy financial risk profile, backed by robust debt protection metrics with debt of approximately Rs. 1,532 crore as of December 31, 2025. The interest coverage is expected to sustain over 8 times over the medium term.

The company plans significant capital expenditure of approximately Rs. 1,700 crore per annum for the next few fiscals, targeting growth opportunities in the new fluoropolymer segment, including battery chemicals. CRISIL noted the recent equity raise of approximately Rs. 430 crore in GFCL EV, a majority-owned subsidiary, for funding this expansion.

Market Position and Future Outlook

Gujarat Fluorochemicals maintains an established market position as the largest polytetrafluoroethylene manufacturer in India and among the top players globally. The company operates a diversified product portfolio comprising PTFE, new fluoropolymers, specialty chemicals, caustic soda, chloromethane, and refrigerant gases.

CRISIL expects the company's operating performance to recover over the next few quarters, driven by the fluoropolymer segment with bottoming out of the destocking phenomenon and tariff rationalization in the US leading to improved demand and realizations. The rating agency maintains a stable outlook, believing the business and financial risk profiles will remain healthy over the medium term supported by strong demand for the company's products.

Gujarat Fluorochemicals has successfully completed its postal ballot process for revising the remuneration terms of Deputy Managing Director Dr. Bir Kapoor. The company announced the voting results on 16th March, 2026, following the completion of the remote e-voting period that concluded on 15th March, 2026.

Voting Results and Shareholder Participation

The ordinary resolution received overwhelming support from shareholders across all categories. The voting results demonstrate strong confidence in the proposed remuneration revision:

Participation Details

The postal ballot process showed significant shareholder engagement with 78.34% of total shares participating in the voting. Key participation metrics include:

E-Voting Process Timeline

The company conducted the postal ballot through remote e-voting facilities provided by NSDL. The structured timeline ensured proper governance:

• Notice Date: 12th February, 2026
• E-voting Commencement: 14th February, 2026 at 9:00 AM IST
• E-voting Conclusion: 15th March, 2026 at 5:00 PM IST
• Results Declaration: 16th March, 2026

Resolution Details

The postal ballot addressed a single ordinary resolution concerning the revision in terms of remuneration of Dr. Bir Kapoor (DIN 01771510), who serves as the Deputy Managing Director of the company. The resolution was categorized as special business requiring shareholder approval under applicable regulations.

Regulatory Compliance

The postal ballot process was conducted in compliance with Regulation 44 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and relevant provisions of the Companies Act, 2013. TNT & Associates, Practicing Company Secretaries, served as the scrutinizer for the e-voting process, ensuring transparency and accuracy in vote counting.

The voting results and scrutinizer's report have been made available on the company's website at www.gfl.co.in , maintaining transparency for all stakeholders. The successful completion of this postal ballot demonstrates strong shareholder confidence in the company's leadership compensation decisions.