Navin Fluorine International Shines Bright in Q2 & H1 FY26 with Robust Growth and Strategic Expansion

Navin Fluorine International Limited has delivered an exceptional performance in the second quarter and first half of the financial year 2025-26, showcasing significant growth across all its business verticals. The company's consolidated revenue surged by 46% year-on-year in Q2 FY26, reaching INR 758.4 crores. For the first half of the fiscal year, revenue grew by 42% to INR 1,483.8 crores. This impressive top-line expansion translated into even stronger profitability, with Operating EBITDA and Profit After Tax more than doubling compared to the same periods last year. The management attributes this stellar performance to higher realizations, increased volumes in both domestic and international markets, and optimal capacity utilization across its manufacturing facilities.

The growth was broad-based, with all three core business segments contributing significantly. The High Performance Products (HPP) segment recorded a 38% year-on-year revenue increase, reaching INR 404 crores in Q2 FY26. The Specialty Chemicals business grew by 39% to INR 220 crores, benefiting from the meaningful contribution of the Fluoro specialty plant, which commenced operations in December 2024 and is now running at optimum capacity. The Contract Development and Manufacturing Organization (CDMO) segment emerged as a star performer, registering a remarkable 98% year-on-year growth to INR 134 crores. This strong showing underscores Navin Fluorine's ability to leverage its diversified portfolio and operational efficiencies.

Strategic Investments Fueling Future Growth

Navin Fluorine's management demonstrated a clear vision for sustained growth by approving two significant capital expenditure projects. The Board sanctioned a capex of INR 236.5 crores for setting up additional HFC capacity, equivalent to 15,000 metric tonnes per annum of R32. This strategic move aims to capitalize on the tight global demand-supply balance for R32, driven by the transition to low GWP gases and increasing demand in RAC and blend applications. This project is projected to generate a peak annual revenue of INR 600-825 crores and is expected to be commissioned by Q3 FY27.

In parallel, a capex of INR 75 crores was approved for debottlenecking the Multi-Purpose Plant (MPP) capacity at Dahej. This initiative is designed to support the launch of new molecules for a global innovator, with an expected contribution of INR 140-160 crores in peak annual revenue. The targeted commissioning for this project is also Q3 FY27. Both projects will be funded through internal accruals, underscoring the company's disciplined capital allocation and strong balance sheet, which maintains a net debt-to-equity ratio of 0.9x.

Operational Excellence and R&D Focus

The company's commitment to operational excellence is evident in its continuous efforts to drive efficiencies. The AHF project is progressing well, with mechanical trials underway and commissioning expected by Q3 FY26. In the CDMO segment, the relationship with a European CDMO partner continues to strengthen, with supplies from the cGMP4 plant targeted to commence from January 2026. Furthermore, the successful deliveries of late-stage pipeline molecules have led to audits by three global major innovators, validating Navin Fluorine's capabilities and quality standards.

Navin Fluorine also emphasizes its robust R&D capabilities, with dedicated centers in Surat, Madhya Pradesh, and Manchester. These centers focus on developing fluorinated specialty chemicals, contract development, and technology transfer, ensuring a strong pipeline of new products and solutions. The company's proactive approach to R&D, coupled with its deep customer relationships, positions it well to anticipate and respond to evolving market needs.

Outlook and Sustainability Commitment

Looking ahead, Navin Fluorine's management is confident about maintaining its growth momentum. The company has revised its Operating EBITDA margin guidance for FY26 to 28-30%, reflecting the strong performance in the first half and the positive outlook for the second half. Cash outflow for capex in FY26 is projected to be between INR 600-700 crores, with a broader frame of INR 1,000 crores for the next couple of years to support ongoing and new strategic projects.

Beyond financial performance, Navin Fluorine remains deeply committed to sustainable operations. The company released its third sustainability report, highlighting initiatives such as a 14.4% to 21.1% increase in renewable electricity share at its Dewas facility, 100% compliance with Plastic Waste Management requirements, and the planting of over 14,000 trees. These efforts underscore Navin Fluorine's dedication to environmental protection, water/energy conservation, and responsible business practices, reinforcing investor trust and long-term value creation.