Gujarat Fluorochemicals Limited: Latest Quarterly Results, Analysis, and Investment Outlook
Gujarat Fluorochemicals Limited (GFL), a prominent player in the specialty chemicals sector, has recently delivered strong quarterly performance, underscoring its strategic positioning in the growing electric vehicle (EV) and fluoropolymer markets. This blog explores GFL’s latest financial results, technical and fundamental aspects, and investment opportunities.
Latest Quarterly Performance
In the first quarter of FY 2026, GFL reported a robust consolidated net profit of ₹184 crore, marking a striking 71% year-on-year increase. The revenue for the same quarter rose 9% YoY to ₹1,281 crore, supported by better operational efficiencies and margin expansion. EBITDA surged by 31%, reaching ₹344 crore, with an improved margin of 27%, up from 22.3% the previous year. This profitability reflects strong cost control, product mix optimization, and growing demand in core segments like fluoropolymers and refrigerants.
For Q2 FY 2025, the company posted revenue of ₹1,304 crore (a 4.24% growth from the prior quarter) and EBITDA of ₹367 crore (up 10.54%). However, net profit saw a slight dip of 3.66% QoQ to ₹184 crore. Despite this minor decline, the overall trend remains positive, with steady growth in operating profit and EBIT margins.
Strategic investment plans announced alongside earnings include a ₹1,600 crore capital expenditure for the fiscal year. Notably, ₹1,200 crore of this is earmarked for advancing the EV vertical, with targeted capacity to produce 20,000 MT of R32 refrigerant by year-end. GFL is also preparing to generate revenue from battery materials starting next fiscal year, aligning with the global push towards sustainable energy solutions.
Technical Analysis Overview
The stock price of GFL has been trading around ₹3,400 to ₹3,430 on NSE. Key technical indicators such as the stochastic oscillator suggest potential for bullish momentum, signaling opportunities for medium-term gains. The stock’s trading volumes and price action highlight resilience, with critical support levels maintaining stability amidst market fluctuations. Investors can watch for breakout patterns or consolidations to time entry points effectively, using technical tools for precision in short to mid-term trades.
Fundamental Analysis Highlights
GFL’s core business in specialty chemicals, particularly fluoropolymers and refrigerants, benefits from high barriers to entry, technical expertise, and growing end-market demand. The company reported consistent revenue growth and expanding margins: EBIT margin stands at over 21%, and net profit margins hover around 14%. The company’s proactive investments in EV-related chemicals such as refrigerants and battery materials offer differentiated growth pathways.
Financially, GFL demonstrates a healthy operating cash flow generation, though it faces some challenges with a declining debtor’s turnover ratio, suggesting slower receivables collection that investors should monitor. The balance sheet remains solid, with increasing capital expenditure aimed at capacity enhancement and product ecosystem expansion.
Here is a detailed table of key fundamental indicators for Gujarat Fluorochemicals Limited based on the latest consolidated financial data up to FY 2025:
| Fundamental Indicator | Value (FY 2025) | Description/Remarks |
| Basic EPS (₹) | 52.38 | Earnings per share, showing profitability |
| Diluted EPS (₹) | 52.38 | Same as basic EPS |
| Cash EPS (₹) | 78.82 | Cash Earnings per share |
| Book Value per Share (₹) | 587.64 | Shareholder equity per share |
| Dividend per Share (₹) | 3.00 | Dividend payout per share |
| Revenue from Operations per Share (₹) | 415.00 | Operating revenue per share |
| PBDIT Margin (%) | 26.06 | Earnings before interest, depreciation, taxes margin |
| PBIT Margin (%) | 19.67 | Operating profit margin |
| PBT Margin (%) | 16.21 | Profit before tax margin |
| Net Profit Margin (%) | 12.59 | Net profit as a percentage of revenue |
| Return on Net Worth (ROE) (%) | 8.89 | Return on shareholders’ equity |
| Return on Capital Employed (ROCE) (%) | 12.47 | Efficiency of capital use |
| Return on Assets (ROA) (%) | 5.96 | Profitability relative to total assets |
| Total Debt to Equity (X) | 0.31 | Leverage ratio, low indicating moderate debt |
| Current Ratio (X) | 1.62 | Liquidity measure, above 1 indicates good liquidity |
| Quick Ratio (X) | 1.11 | More stringent liquidity ratio |
| Inventory Turnover Ratio (X) | 1.28 | Frequency of inventory turnover |
| Price to Earnings (P/E) Ratio | ~60 | Valuation indicator based on current market price |
| Price to Book (P/B) Ratio | 5.15 | Market valuation relative to book value |
| Enterprise Value/EBITDA (X) | 38.68 | Valuation multiple |
These metrics reflect a financially strong company with improving profitability, moderate leverage, good liquidity, and a premium market valuation consistent with its growth prospects and sector positioning.
Investment Opportunities
Gujarat Fluorochemicals presents a compelling investment case underpinned by several factors:
Market leadership in fluoropolymer chemicals with long-term growth potential.
Aggressive ₹1,600 crore investment focused on the EV sector, which is poised for exponential growth.
Expansion in refrigerant product capacities addressing rising cooling demands globally.
Entry into battery materials positions GFL at the forefront of next-generation energy storage solutions.
Strong quarterly earnings performance with improving profit margins and operational efficiencies.
Potential investors should consider GFL’s growth prospects within specialty chemicals and EV domains, balanced against sectoral cyclicality and working capital risks. The company’s strategic shift to future-oriented technologies and product lines offers attractive medium to long-term returns in a rapidly evolving industry landscape.
In conclusion, Gujarat Fluorochemicals Limited combines solid financial health, innovative investments, and market leadership, making it a noteworthy option for investors seeking exposure to specialty chemicals and the burgeoning electric vehicle ecosystem in India.
References: MoneyControl , SmartInvsting , IndiaInfoline.
Disclaimer: Any views and investment tips expressed by any author, investment experts or agencies here on MSTimes are their own and not those of mine or website. I advises users to consult/check with certified Financial experts / advisors before taking any investment decisions.
