Navin Fluorine Boosts EBITDA Margin Outlook, Plans ₹1,000 Crore Capex

Navin Fluorine International Limited (NFIL) has announced an upward revision in its EBITDA margin expectations and outlined significant capital expenditure plans, signaling a robust outlook for the company's future growth.

Improved EBITDA Margin Guidance

NFIL has raised its EBITDA margin guidance for FY26 to 28-30%, surpassing its initial projection of 25%. This upward revision reflects the company's confidence in its operational efficiency and market positioning.

Substantial Capital Expenditure Plans

The company has unveiled a comprehensive capital expenditure framework of approximately ₹1,000 crore for the coming years. This substantial investment is aimed at enhancing NFIL's production capabilities and maintaining its competitive edge in the fluorochemicals market.

Expansion of HFC Capacity

As part of its growth strategy, NFIL's Board of Directors has approved a capital expenditure of ₹236.50 crore for setting up an additional Hydrofluorocarbon (HFC) capacity. This expansion will add up to 15,000 MTPA of R32 equivalent quantity at the company's Surat unit.

Particulars	Details
Existing capacity	9,000 MTPA
Existing capacity utilization	~95%
Proposed capacity addition	HFC capacity up to 15K MTPA R32 equivalent
Expected completion	Q3 of FY27
Investment required	₹236.50 Crores
Mode of financing	Internal accruals

The rationale behind this expansion is to cater to the growing demand from both domestic and export markets.

Debottlenecking of Multi-Purpose Plant

In addition to the HFC capacity expansion, NFIL has approved funding of ₹75 crore for debottlenecking its Multi-Purpose Plant (MPP) facility at Dahej. This project will be undertaken by the company's wholly-owned subsidiary, Navin Fluorine Advanced Sciences Limited.

Particulars	Details
Proposed capacity addition	Debottlenecking to accommodate additional product
Expected completion	Q3 of FY27
Investment required	₹75 Crores
Mode of financing	Internal accruals to fund the subsidiary's capex

The rationale for this investment is to manufacture and supply a fluoro intermediate for a novel agrochemical product, which will expand the company's product basket and strengthen its relationship with a global innovator.

Financial Performance

For the quarter ended September 30, 2025, NFIL reported consolidated revenue from operations of ₹758.42 crore, marking a 46.26% increase year-on-year. The company's profit after tax for the same period stood at ₹148.37 crore, representing a 152.24% growth compared to the previous year.

Dividend Declaration

The Board of Directors has declared an interim dividend of ₹6.50 per share (325%) on equity shares with a face value of ₹2 each for the financial year 2025-26.

These strategic initiatives and financial results underscore NFIL's commitment to growth and value creation for its shareholders. The company's focus on expanding its production capabilities and improving operational efficiency positions it well to capitalize on the growing demand for fluorochemicals in both domestic and international markets.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+14.28%	+12.48%	+23.06%	+25.78%	+70.80%	+161.06%

Navin Fluorine International Limited (NFIL), a leading player in the fluorochemicals industry, has unveiled growth projections and significant capacity expansion plans, signaling a robust outlook for the company's future.

Growth Projections

NFIL has projected a 42% sales growth for the fiscal year 2026 (FY26), alongside a 118% increase in EBITDA. These projections underscore the company's confidence in its market position and growth strategies.

Capacity Expansion and Capital Expenditure

The company's Board of Directors has approved two major capital expenditure initiatives:

An investment of ₹236.50 crores for setting up an additional HFC (Hydrofluorocarbon) capacity of up to 15,000 MTPA R32 equivalent at its Surat unit. This expansion aims to cater to the growing demand from both domestic and export markets.
A ₹75 crore investment for debottlenecking the Multi Purpose Plant (MPP) facility at Dahej, to be undertaken by NFIL's wholly-owned subsidiary, Navin Fluorine Advanced Sciences Limited.

Financial Performance

NFIL's Q2 FY26 results reflect growth:

Metric	Q2 FY26	YoY Growth
Revenue	₹758.42 crores	46%
Operating EBITDA	₹246.17 crores	129%
Operating EBITDA Margin	32.5%	1176 bps
Operating PBT	₹179.29 crores	173%

The company's performance was driven by growth across its business verticals, with the Specialty Chemicals segment growing by 39% and the CDMO (Contract Development and Manufacturing Organization) segment showing a 98% growth year-on-year.

Strategic Initiatives

NFIL plans to invest ₹310 crore in capital expenditure for HFC and MPP debottlenecking activities, targeting global innovators. The company expects margins above 30%, driven by specialty chemicals and CDMO scale-up operations.

Dividend Announcement

The Board of Directors has declared an interim dividend of ₹6.50 per share (325% of face value) for the financial year 2025-2026.

Future Outlook

NFIL maintains a positive outlook, with order book visibility extending through FY27. The company's focus on expanding its product portfolio and deepening relationships with global innovators positions it well for growth in the fluorochemicals market.

As Navin Fluorine International continues to invest in capacity expansion and innovation, it aims to strengthen its position as a partner for diverse fluorochemical solutions globally. The company's strategic initiatives and financial performance indicate a promising trajectory for the coming years.