GFL Q2 revenue rises 45% as fluorochemicals jump 135%

Gujarat Fluorochemicals Limited reported consolidated revenue of Rs 1,760 crore in Q2FY27, up 45% year on year, as fluorochemicals revenue rose 135% to Rs 607 crore on higher R32 sales. Consolidated profit after tax rose 42% to Rs 240 crore, while EBITDA margin declined to 27% from 30%.

Why did GFL's Q2FY27 revenue rise 45%?

GFL's consolidated revenue increased by Rs 550 crore to Rs 1,760 crore in Q2FY27 from Rs 1,210 crore in Q2FY26. Revenue was also 11% higher than Rs 1,588 crore in Q1FY27. Fluorochemicals delivered the largest reported year-on-year increase among the three disclosed business verticals.

Fluorochemicals revenue reached Rs 607 crore in Q2FY27, compared with Rs 258 crore a year earlier, an increase of Rs 349 crore or 135%. It also rose 33% from Rs 458 crore in Q1FY27. GFL attributed the growth primarily to higher R32 sales, supported by demand across its wider refrigerant portfolio.

Fluoropolymers remained GFL's largest disclosed revenue vertical, at Rs 931 crore in Q2FY27, up 22% from Rs 764 crore in Q2FY26 and 2% from Rs 914 crore in Q1FY27. GFL cited sustained demand, healthy volumes and focus on high-value products. Bulk chemicals revenue, by contrast, declined 5% year on year to Rs 151 crore and fell 8% sequentially from Rs 164 crore.

How did GFL's Q2FY27 profit and margins change?

GFL's consolidated profit after tax, or PAT, increased 42% to Rs 240 crore in Q2FY27 from Rs 169 crore in Q2FY26. PAT was also 10% above Rs 219 crore in Q1FY27. Consolidated PAT margin was unchanged at 14% from both the year-earlier and preceding quarters.

Consolidated earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 32% to Rs 473 crore from Rs 358 crore in Q2FY26. EBITDA margin declined by 271 basis points to 27% from 30%; one basis point equals one-hundredth of a percentage point. Sequential EBITDA increased 11% from Rs 428 crore, while margin remained at 27%.

The chemical segment recorded revenue of Rs 1,723 crore, up 42% from Rs 1,210 crore, and EBITDA of Rs 505 crore, up 33% from Rs 381 crore. Its EBITDA margin declined by 218 basis points to 29% from 31%. Chemical-segment PAT increased 46% to Rs 290 crore, while PAT margin rose to 17% from 16%.

Battery materials generated Rs 37 crore of revenue in Q2FY27, with no comparable Q2FY26 revenue disclosed. The business recorded an EBITDA loss of Rs 32 crore and a PAT loss of Rs 50 crore, compared with losses of Rs 23 crore and Rs 30 crore, respectively, in Q2FY26. This contrasts with the profitable chemical segment during the quarter.

What changed across GFL's chemical businesses?

GFL's fluorochemicals business added Rs 349 crore of revenue year on year in Q2FY27, compared with a Rs 167 crore increase in fluoropolymers and a Rs 7 crore decline in bulk chemicals. Higher R32 sales were the stated driver in fluorochemicals. Bulk chemicals faced lower caustic soda prices and higher captive consumption of chloromethanes for R32 production.

For fluoropolymers, GFL said use of FKM in automotive applications, and PFA and modified PTFE in semiconductors and data centres, is expected to support product-mix improvement and realisations. These are management expectations rather than reported sales commitments. The reported fluoropolymers revenue base was Rs 931 crore in Q2FY27.

GFL said refrigerant demand and pricing remained stable in the near term, and management expects full utilisation of R32 capacity to increase volumes. R134a production is expected to commence by Q4FY27, which management says should further support fluorochemicals revenue and profitability. For FY27, management expects caustic soda demand to remain stable and chloromethanes performance to remain range-bound.

What is GFL doing in battery materials?

GFL said it is progressively ramping LiPF₆ production and adding plants, with sales to five major global electrolyte players and multi-year order visibility. LiPF₆ is lithium hexafluorophosphate, an electrolyte salt used in lithium-ion batteries. The presentation provides no value or volume for these orders, while Q2FY27 battery-materials revenue was Rs 37 crore.

Lithium iron phosphate, or LFP, plant samples are progressing through customer qualification programmes globally, including India, and GFL is moving towards higher-end LFP grades. The company said further substantial LFP capacity expansions are under way in response to market demand. The business reported a Rs 32 crore EBITDA loss in Q2FY27 while these qualification and expansion activities continued.

Multiple polyvinylidene fluoride, or PVDF, and polytetrafluoroethylene, or PTFE, grades are in advanced customer qualification for wet and dry electrode applications. GFL expects commercial supplies under long-term supply agreements to begin from Q4FY27. It is also supplying customer-specific electrolyte formulations for evaluation by domestic electric-vehicle and battery-energy-storage-system manufacturers, with management expecting domestic electrolyte demand to pick up towards the end of the next financial year.

Conclusion

GFL's Q2FY27 results combined 45% consolidated revenue growth and 42% PAT growth with a 271-basis-point decline in consolidated EBITDA margin. Fluorochemicals supplied the principal acceleration, as revenue rose 135% to Rs 607 crore on higher R32 sales. Fluoropolymers remained the largest disclosed vertical at Rs 931 crore, while bulk chemicals revenue declined 5% year on year.

The next disclosed milestones are R134a production and the expected start of battery-material commercial supplies under long-term agreements, both by Q4FY27. GFL's planned FY27 capital expenditure is Rs 800 crore, while the presentation also identifies R32 capacity utilisation, battery-material qualification progress and the Rs 32 crore quarterly battery-material EBITDA loss as matters to watch.