Gujarat Fluorochemicals Limited (GFL) has released its financial results for the second quarter and first half of fiscal year 2026, showcasing robust performance across its business segments.

Financial Highlights

For the six months ended September 30, 2025, GFL reported:

• Consolidated revenue from operations of Rs. 2,491.00 crores, up 5.37% from Rs. 2,364.00 crores in the same period last year
• EBITDA of Rs. 708.00 crores, representing a 27.07% increase from Rs. 557.00 crores in H1 FY2025
• Net profit of Rs. 363.00 crores, a significant 58.52% jump from Rs. 229.00 crores in the corresponding period

The company's net profit margin improved to 14.95% in H1 FY2026, compared to 10.00% in H1 FY2025, indicating enhanced operational efficiency.

Segment Performance

GFL operates in two main segments:

1. Chemicals: This segment, comprising bulk chemicals, fluorochemicals, and fluoropolymers, continues to be the primary revenue driver. For H1 FY2026, it generated:

   • Revenue of Rs. 2,502.00 crores
   • EBITDA of Rs. 735.00 crores

2. EV Products: This newer segment, focused on battery chemicals and allied activities, is still in its growth phase. For H1 FY2026, it reported:

   • Revenue of Rs. 4.00 crores
   • EBITDA loss of Rs. 27.00 crores

Balance Sheet Strength

As of September 30, 2025, GFL maintained a strong financial position:

• Total assets stood at Rs. 10,618.00 crores
• Shareholders' equity increased to Rs. 7,662.00 crores
• The debt-to-equity ratio improved to 0.23, down from 0.29 at the end of FY2025

Strategic Developments

The company has made progress on several strategic fronts:

1. EV Products Expansion: GFL continues to invest in its EV products segment, positioning itself for future growth in the battery materials market.

2. Investments: During Q2 FY2026, the group invested Rs. 8.00 crores in equity shares of Flurry Wind Energy Private Limited.

3. Corporate Restructuring: The company is in the process of implementing a Composite Scheme of Arrangement involving its holding company and other group entities, which is expected to streamline the corporate structure.

Management Commentary

Vivek Jain, Managing Director of Gujarat Fluorochemicals Limited, stated, "Our strong performance in the first half of FY2026 reflects the resilience of our core chemicals business and our strategic investments in future growth areas. While the EV products segment is still in its early stages, we are confident in its long-term potential. Our focus remains on operational excellence, innovation, and sustainable growth across all our business segments."

Outlook

With a solid financial foundation and strategic initiatives underway, Gujarat Fluorochemicals Limited appears well-positioned to capitalize on opportunities in both its established chemicals business and the emerging EV materials market. The company's improved profitability and strong balance sheet provide a robust platform for future growth and expansion.

Investors and stakeholders will be watching closely to see how GFL's investments in the EV products segment mature and contribute to overall performance in the coming quarters.

Gujarat Fluorochemicals Limited (GFL) has reported strong financial performance for both H1FY26 and Q2, with significant growth in revenue and profitability. The company has also announced important board changes.

Financial Highlights

GFL's financial results showcase robust growth:

• H1FY26 Revenue: ₹4,896 crores, an 18% year-on-year increase
• H1FY26 EBITDA: ₹1,534 crores, with a margin of 31%

Q2 consolidated financial results:

All financial figures in billion rupees, except for percentages

The company reported revenue from operations of ₹364.7 crores on a consolidated basis for the quarter.

Segment Performance

GFL operates in two reportable segments:

1. Chemicals (comprising Bulk Chemicals, Fluorochemicals & Fluoropolymers):

   • Revenue: ₹12.15 billion, up 2% year-on-year
   • EBITDA: ₹3.81 billion, grew by 26% YoY
   • EBITDA margin improved by 608 basis points YoY to 32%

2. EV Products (Battery Chemicals and allied activities):

   • Revenue: ₹30 million
   • EBITDA: -₹170 million

Board Changes

The company announced significant board changes in its meeting held on November 11:

• Mr. Niraj Kishore Agnihotri and Mr. Shesh Narayan Pandey were appointed as Additional and Whole-time Directors for a period of one year, subject to shareholder approval.
• Mr. Sunil Kumar Singh Chauhan resigned as Whole-time Director due to personal reasons.

Strategic Focus and Expansion

The company's focus areas include:

1. Expanding its fluoropolymer and specialty chemicals portfolio
2. Developing high-purity grades for semiconductors, aerospace, and automotive sectors
3. Ramping up production of R32 refrigerant
4. Progressing with its battery materials business, including LFP cathode active materials, electrolytes, and binders
5. Expanding capacity for PVDF, Li-Ion battery chemicals, and green hydrogen materials
6. Focusing on exports to EV and semiconductor sectors

Outlook

Gujarat Fluorochemicals appears well-positioned to capitalize on growing demand for its chemical products and emerging opportunities in the EV battery materials sector. The company expects strong growth in specialty chemicals and fluoropolymers, with margin expansion anticipated from value-added fluorine derivatives.

While the EV products segment is currently operating at a loss, it represents a strategic long-term investment for the company in a high-growth market.

Investors should note that market conditions and global economic factors may impact future performance, and are advised to conduct their own research before making investment decisions.