GFL Q4FY26: Chemicals grow, battery materials set up for FY27 scale-up
GFL Q4FY26: Chemicals hold steady while battery materials moves toward a scale-up year
Gujarat Fluorochemicals Limited (GFL) ended Q4FY26 with a familiar pattern that has defined the year. The core chemicals business delivered growth and healthy margins, while the battery materials vertical remained loss-making as it transitioned from a project phase into an operating phase.
For Q4FY26, consolidated revenue from operations rose 12 percent year on year to INR 1,369 crore (vs INR 1,225 crore in Q4FY25). Consolidated EBITDA was largely flat at INR 308 crore (vs INR 306 crore), but margins compressed to 22 percent from 25 percent. Consolidated PAT fell to INR 112 crore from INR 162 crore.
The company highlighted two comparability factors. In Q4FY26, PAT is before an exceptional item linked to implementation of the new labour code (INR 3 crore net of tax in consolidated numbers). In Q4FY25, PAT included INR 29 crore of tax related benefits.
Segment snapshot: chemicals growth, EV losses
The chemical segment remained the earnings anchor. Chemical segment revenue from operations increased to INR 1,358 crore from INR 1,225 crore, while EBITDA rose to INR 353 crore from INR 312 crore. Chemical EBITDA margin improved to 26 percent.
Battery materials, reported separately, generated INR 11 crore of revenue in Q4FY26. The segment posted EBITDA of negative INR 45 crore and PAT of negative INR 57 crore. Management clarified on the call that once operations start and assets are capitalized, pre-operative expenses and trial losses can no longer be capitalized and must flow through the P&L, even before sales ramp up meaningfully.
Fluoropolymers leads, R-32 begins contributing
Within chemicals, fluoropolymers stood out. The fluoropolymers vertical reported Q4FY26 revenue of INR 848 crore, up 19 percent year on year and 14 percent quarter on quarter. Management attributed performance to higher volumes and price increases across key products, supported by a continued push into value-added grades.
On the call, management emphasized that specialty fluoropolymers such as PFA and FKM are expected to grow faster, supported by end markets like semiconductors, EVs and battery energy storage systems (BESS), and clean energy applications. The company also stated that earlier fluoropolymer capex should reach optimum utilization in the current financial year.
Fluorochemicals posted INR 319 crore of revenue in Q4FY26, down 2 percent year on year but up 63 percent sequentially from INR 195 crore in Q3FY26. The key milestone was the start of R-32 production and sales in March 2026. Management highlighted that demand for refrigerants should remain healthy, supported by residential air-conditioning penetration, commercial refrigeration and cold chain infrastructure, and increased cooling needs linked to data centers.
Bulk chemicals remained stable with revenue of INR 163 crore versus INR 161 crore in Q4FY25. Management expects caustic soda pricing to remain range-bound in FY27 due to domestic capacity additions.
Capex and execution priorities for FY27
GFL used the concall to outline a detailed FY27 capex plan. Total capex earmarked is INR 3,150 crore for FY27, of which INR 2,300 crore is planned for GFCL EV and INR 850 crore for GFL.
Within the INR 850 crore planned for GFL, management provided a break-up: around INR 150 crore for expanding refrigerant gas and related infrastructure capacities, INR 222 crore for new high-purity electronic specialty chemicals for the semiconductor sector, INR 250 crore for adding new fluoropolymer capacities, and the balance for backward integration and annual maintenance capex.
For battery materials, management reiterated the broader roadmap of INR 6,000 crore cumulative capex by FY28, targeted asset turnover of about 2x and EBITDA margin over 25 percent, with full potential expected to be realized in FY29.
Progress updates were specific by product.
LiPF6: Management stated the product is approved by most major global electrolyte players, commercial sales are scaling up, and orders are in place for FY27 and beyond. A quarter-on-quarter ramp-up in production was indicated.
LFP cathode active material: Samples have received initial approvals, and management expects final qualification by the end of Q3FY27. Commercial supply is expected to start thereafter, with the plant stated as fully contracted.
PVDF binder: The presentation stated the qualification process is complete, with commencement of commercial business expected in the first half of FY27.
Natural graphite anode active material: GFL stated it is setting up an NGAAM facility. With this addition, the company expects its EV platform to cover around 70 percent of the value of an LFP cell cost.
Working capital and near-term watch items
Working capital days increased to 192 in FY26 from 188 in FY25. Management explained the structural drivers: inventory held across plants and warehouses in Germany and the US, sea transit time of 30 to 60 days, and customer credit terms of 60 to 90 days. The company also cited just-in-time requirements from marquee customers that require maintaining two to three months of insurance stock.
For the battery materials segment, management also pointed to near-term P&L pressure as assets are capitalized and operating expenses shift from capitalization to the income statement. The CFO cited a one time mark-to-market loss from foreign currency buyers credit during a period of sharp USD-INR moves, and stated the exposure has now been fully covered.
Takeaways
GFL’s Q4FY26 message was consistent. Fluoropolymers remains the primary growth driver within chemicals, and the start of R-32 production adds a new lever for the refrigerants portfolio. At the same time, the battery materials business is still in the qualification and utilization ramp stage, with losses reflecting the accounting transition from project to operations.
FY27 becomes a key execution year. The capex plan is large, the timelines for LiPF6 scaling and LFP commercialization are defined, and the company is adding anode active material to broaden its battery wallet. Investors will likely track two variables most closely: the pace of battery revenue ramp-up through FY27, and whether core chemical margins stay resilient amid global volatility and logistics and energy cost swings.
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