Navin Fluorine International Limited (NFIL) has reported a robust financial performance for the second quarter, with significant growth across all business segments. The company also announced strategic capex plans to strengthen its market position in the fluorochemicals industry.

Financial Highlights

NFIL reported a strong 46% year-on-year growth in quarterly revenue, reaching INR 758.00 crores. The company's operating EBITDA more than doubled to INR 246.00 crores, with margins expanding to 32.5% from 20.7% in the previous year. Profit after tax saw an impressive surge, more than doubling to INR 148.00 crores from INR 59.00 crores in the same quarter of the previous fiscal year.

For the first half of the current fiscal year, the company's performance remained solid:

Dividend Declaration

The Board of Directors has declared an interim dividend of INR 6.50 per share on a face value of INR 2.00 per share, reflecting the company's strong financial position and commitment to shareholder returns.

Strategic Capex Initiatives

NFIL announced two significant capex projects totaling INR 311.50 crores:

1. HFC Capacity Expansion: An investment of INR 236.50 crores to set up additional HFC capacity equivalent to 15,000 metric tonnes per annum of R32. This project is expected to generate peak annual revenue of INR 600.00-825.00 crores.

2. MPP Capacity Debottlenecking: A INR 75.00 crore investment to debottleneck the Multi-Purpose Plant (MPP) capacity, with potential revenue of INR 140.00-160.00 crores per annum.

Both projects will be funded through internal accruals, highlighting the company's strong cash flow generation.

Business Segment Performance

All three business divisions - High Performance Products (HPP), Specialty Chemicals, and Contract Development and Manufacturing Organization (CDMO) - reported good growth:

• HPP: Revenue crossed INR 400.00 crores, marking a 38% year-on-year increase, driven by higher realization and volumes in both domestic and international markets.
• Specialty Chemicals: Revenue grew by 39% year-on-year to INR 220.00 crores, with the new fluoro specialty plant contributing significantly.
• CDMO: Revenue surged by 98% year-on-year to INR 134.00 crores, with strong relationships with global partners driving growth.

Future Outlook

NFIL remains optimistic about sustained momentum across all business segments. The company is focusing on manufacturing excellence, controlling costs, and pursuing growth objectives. With a strong order book in place and strategic capex plans, NFIL is well-positioned for future growth in the fluorochemicals market.

The company's management expects to maintain EBITDA margins between 28% to 30% for the full fiscal year, driven by volume growth, operational efficiencies, and a balanced approach to product placement in global and domestic markets.

As Navin Fluorine International Limited continues to strengthen its position in the fluorochemicals industry, investors and stakeholders can anticipate further growth and value creation in the coming quarters.

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.

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.

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.