Gujarat Fluorochemicals’ H1FY27 EBITDA margin reaches 27%

Gujarat Fluorochemicals Ltd. (GFL) reported a 27% EBITDA margin in H1FY27, up from 25% in FY26, while working-capital days fell to 152 from 192. H1FY27 EBITDA was Rs 901 crore on operating revenue of Rs 3,348 crore, PAT margin was 14%, and GFL listed Rs 3,100 crore of planned FY27 capital expenditure.

How did GFL’s revenue and earnings change through H1FY27?

GFL’s operating revenue rose in each of the three full financial years presented, from Rs 4,281 crore in FY24 to Rs 4,737 crore in FY25 and Rs 4,996 crore in FY26. H1FY27 operating revenue was Rs 3,348 crore, including Rs 1,186 crore of domestic revenue and Rs 2,162 crore of export revenue. As H1FY27 covers six months and FY24 to FY26 are full years, the presentation does not provide a like-for-like annual comparison.

GFL’s EBITDA increased from Rs 955 crore in FY24 to Rs 1,157 crore in FY25 and Rs 1,269 crore in FY26, while its EBITDA margin rose from 22% to 24% and then 25%. H1FY27 EBITDA was Rs 901 crore and the margin reached 27%, 2 percentage points above FY26. PAT increased from Rs 435 crore in FY24 to Rs 534 crore in FY26, while H1FY27 PAT was Rs 459 crore and PAT margin was 14%, versus 11% in FY26. GFL says FY26 EBITDA and PAT were reinstated under Note No. 4 to its published results.

Which operating segments shaped GFL’s Q2FY27 performance?

GFL’s fluorochemicals revenue reached Rs 607 crore in Q2FY27, up 135% from Rs 258 crore in Q2FY26 and 33% from Rs 458 crore in Q1FY27. Management attributed the year-on-year and sequential increases primarily to higher R32 sales and healthy demand across the broader refrigerant portfolio. The presentation says refrigerant demand and pricing remain stable in the near term.

GFL’s bulk chemicals revenue moved in the opposite direction, declining 5% year on year to Rs 151 crore in Q2FY27 from Rs 158 crore in Q2FY26. It also fell 8% from Rs 164 crore in Q1FY27. Management attributed the movement to lower caustic soda prices and higher captive consumption of chloromethanes for R32 production, while stating that caustic soda demand is expected to remain stable during FY27.

Did GFL improve returns and working-capital days in H1FY27?

GFL reported return on capital employed, or ROCE, of 17.17% in H1FY27, compared with 14.05% in FY26 and 15.79% in FY25. Return on equity, or ROE, was 16.38% in H1FY27, above 12.17% in FY26 and 14.80% in FY25. The H1FY27 presentation therefore shows higher reported return measures than the preceding two full financial years.

GFL reduced working-capital days by 40 days to 152 in H1FY27 from 192 in FY26, reversing the increase from 167 days in FY24 to 188 days in FY25 and 192 days in FY26. The presentation does not provide a receivables, inventory or payables breakdown. Its FY25 and FY26 ROCE and ROE figures are marked as excluding capital employed in capacity expansions during the preceding two years and capital work in progress, including electric-vehicle (EV) investments, expected to generate revenue from the next financial year.

What capital expenditure and operating milestones has GFL planned for FY27?

GFL lists planned FY27 capital expenditure of Rs 800 crore for GFL and Rs 2,300 crore for EV, totalling Rs 3,100 crore. This compares with Rs 270 crore for GFL and Rs 787 crore for EV in FY26, a combined Rs 1,057 crore. The presentation identifies the FY27 figures as planned expenditure, rather than spending already reported.

The planned allocation makes EV the larger component of the FY27 capex plan, following Rs 669 crore of EV capex in FY24, Rs 519 crore in FY25 and Rs 787 crore in FY26. GFL notes that FY26 includes four days of the GFCL EV business. Management also expects full utilisation of R32 capacity to raise volumes and says R134a production is expected to commence in Q4FY27, which it expects to support fluorochemicals revenue and profitability.

Conclusion

GFL’s H1FY27 presentation shows a 27% EBITDA margin, a 14% PAT margin and 152 working-capital days, compared with 25%, 11% and 192 days respectively in FY26. The reported improvement in these indicators came alongside a Q2FY27 fluorochemicals revenue increase to Rs 607 crore, while bulk chemicals revenue declined to Rs 151 crore.

The next disclosed items to watch are execution of the Rs 3,100 crore FY27 capex plan, full utilisation of R32 capacity and the expected start of R134a production in Q4FY27. Management expects stable near-term refrigerant demand and pricing, while noting that caustic soda pricing will remain influenced by prevailing market dynamics.