FLUOROCHEM
Large CapGujarat Fluorochemicals Limited
Industrials
Gujarat Fluorochemicals Ltd. (GFCL) is a leading Indian chemicals company, India's largest integrated fluoropolymer producer, supplying fluoropolymers and fluorochemicals globally. It is developing products for new-age businesses like EVs, BESS, and green hydrogen, leveraging its 30 years of fluorine chemistry expertise.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend is neutral, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/4 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 0/100PAT -43% YoY · margin compression · Rev +12% YoY · +21% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,369 Cr | +11.8% | +20.5% |
| EBITDA | ₹307 Cr | +0.3% | +11.6% |
| Operating margin | 22.0% | -300 bps | -200 bps |
| PAT | ₹109 Cr | -42.9% | +6.9% |
| PAT margin | 8.0% | -763 bps | -102 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Q4FY26 consolidated revenue grew 12% YoY to Rs. 1,369 Cr, driven by the Chemical segment (up 11%). Consolidated EBITDA rose only 1% YoY to Rs. 308 Cr, while PAT declined 32% YoY to Rs. 112 Cr, impacted by losses in the new Battery Materials segment.
Consolidated PAT declined sharply due to significant losses in the nascent Battery Materials segment, which is still in its pre-commercialization phase. While the Chemical segment showed robust growth, the substantial capex in battery materials is yet to yield returns, impacting near-term profitability.
Revenue by Segment (Q4FY26)
Latest issuer-disclosed distribution across 2 reported categories.
Fluoropolymers Demand
Global fluoropolymer demand is expected to remain strong, driven by rising applications in semiconductors, EVs/BESS, and clean energy sectors.
R32 Production & Sales
R32 production and sales commenced from March 2026. Demand for refrigerants is expected to remain healthy, supported by increasing penetration of residential air-conditioning and cooling infrastructure for AI/Data centers.
Battery Materials
EV/BESS demand is growing rapidly, with ex-China LiB cell demand expected to grow from 500 GWh in CY26 to ~1.8 TWh by CY30. LiPF6 has orders in place for FY27 and beyond.
High-Performance Fluoropolymers
High-performance fluoropolymers like PFA and FKM are expected to grow faster, led by semiconductor fabs, AI-driven data center expansion, and advanced automotive applications.
R32 Production Commencement
R32 production and sales commenced from March 2026.
Battery Materials Phase I Commissioning
All the initial capacity planned in Phase I for battery materials has been commissioned and contracted for.
NGAAM Facility Setup
The company is setting up an NGAAM (Anode) facility, which will cover 70% value of LFP cell cost.
LFP CAM Commercial Sales
Samples from the LFP (CAM) plant have received initial approvals, with commercial sales expected to start in H2FY27.
Rapid EV/BESS Demand Growth
EV/BESS demand is growing at a rapid pace, with ex-China LiB cell demand expected to grow from 500 GWh in CY26 to ~1.8 TWh by CY30.
Firming Battery Materials Prices
Prices have firmed up for all battery materials over the last two quarters.
Strong Fluoropolymer Demand
Global fluoropolymer demand is expected to remain strong, driven by rising applications in semiconductors, EVs/BESS, and clean energy sectors.
Favorable HFC Pricing
The pricing environment for HFCs remains favorable, supported by disciplined global supply dynamics and healthy demand across key end markets.
Weakness in Middle East Market
The Fluorochemicals segment faced a challenging global environment and weakness in the Middle East market.
Domestic Caustic Soda Capacity Additions
Demand outlook for caustic soda is expected to remain stable in FY27, but pricing is likely to remain range-bound due to domestic capacity additions.
New Segment Profitability
The Battery Materials segment reported significant negative EBITDA of Rs. -45 Cr and PAT of Rs. -57 Cr in Q4FY26, impacting consolidated results.
Capex Realization Timeline
The full potential of the Rs. 6,000 Cr capex for battery materials is expected to be realized only in FY29, indicating a long gestation period.
Customer Qualification for New Products
LFP CAM and PVDF Binder are still in qualification/approval stages, with commercial sales expected in H2FY27 and H1FY27 respectively, posing execution risk.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is essential to account for potential seasonality in chemical demand and pricing. QoQ comparison is also relevant to assess sequential momentum, particularly for new product ramp-ups like R32 and the nascent Battery Materials segment.
Consolidated EBITDA Margin
Consolidated EBITDA Margin for Q4FY26 stood at 22%, a decrease of 248 bps compared to 25% in Q4FY25.
Chemical Segment EBITDA Margin
Chemical segment EBITDA Margin for Q4FY26 stood at 26%, an increase of 52 bps compared to 25% in Q4FY25.
Working Capital Days
Working Capital Days remained stable at 100 days in FY26, consistent with FY25.
Capex Plan FY27
Planned Rs. 2,300 Cr capex for FY27 across the battery material portfolio, largely growth capex including for NGAAM.
Battery Materials Commercialization
LFP CAM samples received initial approvals, commercial sales expected in H2FY27. PVDF Binder qualification complete, commercial business expected in H1FY27.
Battery Materials Capex & Returns
Planned Rs. 2,300 Cr capex for FY27. Overall capex Rs. 6,000 Cr by FY28, targeting 2x Asset turnover and 25%+ EBITDA margin by FY29.
Fluorochemicals Strategy
Continued focus on optimizing HFC production and incremental capacity expansion to utilize entitlements under the Kigali Amendment.
Integrated Battery Complex Vision
To be the global leader in battery materials, garnering the largest share of the EV/ESS battery wallet, with a fully integrated complex in Jolva.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Battery Materials Commercial Sales | LFP CAM samples approved, PVDF Binder qualification complete. | Commencement and ramp-up of commercial sales for LFP CAM (H2FY27) and PVDF Binder (H1FY27). |
| Battery Materials Capex Utilization & Returns | Rs. 2,300 Cr capex planned for FY27, Rs. 6,000 Cr by FY28. | Progress on capex deployment and achievement of 2x asset turnover and 25%+ EBITDA margin by FY29. |
| Consolidated Profitability | Q4FY26 Consolidated PAT down 32% YoY. | Improvement in consolidated PAT as the Battery Materials segment scales up and turns profitable. |
| Fluoropolymers Growth | Revenue up 19% YoY and 14% QoQ. | Sustained strong growth in fluoropolymers, especially high-performance grades, driven by new applications. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
Gujarat Fluorochemicals Limited plans to invest approximately Rs 6,000 crore over the next 4-5 years to build large-scale battery materials manufacturing capacity.
"Investing ~ Rs 6,000 crs over the next 4-5 years"
The company is further expanding its LiPF6 capacities to meet growing demand.
"are further expanding our capacities to meet growing demand"
LiPF6 sales are expected to commence soon.
"In LiPF₆ sales to commence soon"
Sales of fluoropolymer binders are expected to commence from first half of CY26.
"expecting sales to commence from first half of CY26"
Trend score and candlestick chart
56NeutralSMA20 +8.1% / mo
Technical chart
FLUOROCHEMweekly · 1Y-4.0%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 50. Wait for confirmation.
- SMA20 rising (~7.5% over last month) — short-term momentum positive.
- RSI(14) at 50 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 8% off 52W high · 23% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Growth contributes 18/25 to the score.
- Balance sheet contributes 10/15 to the score.
Main drags
- Fair-value margin of safety is negative at -52.2%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 1/30; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 64th percentile of the scored universe and 61st percentile within Industrials. Main check: financial discipline is weak at 52/100.
Healthy Trust Lite: Promoter holding is 61.4%. Key concern: Promoter holding fell 1.2%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Industrials: 61st pctile, median 68 · Large: 39th pctile, median 74
106 documents indexed, but claim history is not strong enough yet.
4 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 61.4%.
- ▸Promoter pledge is zero.
- ▸5 years of positive FCF.
- ▸3/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸Promoter holding fell 1.2%.
- ▸ROE is low at 7.8%.
- ▸1 of the latest 4 quarters had PAT decline worse than 25% YoY.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 65.20
- P/B
- 4.88
- EV/EBITDA
- 24.54
- Market Cap
- 38366.00Cr
Profitability
- ROE
- 7.78%
- ROCE
- 9.86%
- ROA
- 4.83%
- Dividend Y
- 0.09%
Growth (CAGR)
- Revenue 5Y
- 14.00%
- EPS 5Y
- 36.00%
- Revenue 3Y
- -4.00%
- EPS 3Y
- -24.00%
Balance Sheet
- Debt/Equity
- 0.29
- Interest Coverage
- 9.35×
- Altman Z
- 7.67
- Book Value
- 716.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 5/5
- OCF
- 961.00 Cr
- EPS TTM
- 52.25
Shareholding
- Promoter Hold
- 61.39%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 57%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.