Navin Fluorine Q3 Profit Doubles, JM Financial Hikes TP 24%

Introduction

Navin Fluorine International announced a remarkable performance for the third quarter of fiscal year 2026, with its consolidated net profit more than doubling. The strong financial results triggered a volatile trading session on February 10, 2026, where the stock initially surged before paring its gains. The performance also prompted brokerage firm JM Financial to reiterate its positive outlook, raising the target price for the specialty chemicals company by a significant margin.

A Volatile Trading Session

The market's reaction to the earnings report was initially strong. Navin Fluorine's share price jumped 5.6% to reach an intra-day high of ₹6,965 on the National Stock Exchange (NSE). However, the early enthusiasm did not sustain throughout the session. The stock later reversed its course, slipping into negative territory to trade at ₹6,551.5, a decrease of 0.7% from its previous close. The session saw significant activity, with approximately 0.12 million shares changing hands on the NSE by mid-day.

Decoding the Q3 Financial Performance

The primary driver behind the market's attention was the company's exceptional financial results for the quarter ending December 2025. Navin Fluorine reported a consolidated net profit of ₹185.40 crore, marking a substantial 122% increase from the ₹83.60 crore posted in the same quarter of the previous year. This growth was supported by a robust top-line performance. The company's revenue from operations grew by 47% year-on-year, rising to ₹892.37 crore from ₹606.20 crore. According to the company, this increase was attributable to higher volumes and better price realisation.

Surge in Operational Efficiency

The company's operational metrics also showed significant improvement. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the third quarter stood at ₹307.6 crore, a 109% increase compared to ₹147.31 crore in the corresponding period a year ago. This sharp rise in EBITDA highlights improved operational efficiency and cost management, contributing directly to the bottom-line growth.

Financial Performance Summary

Analyst Perspective: JM Financial's Upgraded Outlook

Following the results, JM Financial, a domestic brokerage firm, reinforced its confidence in Navin Fluorine, designating it as a top pick within the chemical sector. The firm noted that the company's Q3 EBITDA and profit after tax (PAT) surpassed its estimates by 19%. Consequently, JM Financial raised its earnings-per-share (EPS) estimates for the financial years 2026, 2027, and 2028 to a range of 18-24%. In a significant move, the brokerage increased its target price for the stock to ₹8,270 from the earlier ₹6,685, implying a potential upside of approximately 24% from previous levels.

Key Growth Drivers Identified

JM Financial's optimistic forecast is underpinned by several strategic initiatives and operational strengths. The brokerage expects Navin Fluorine to register a compound annual growth rate (CAGR) of 23% in sales, 21% in EBITDA, and 26% in EPS over the FY26-FY28 period. Key growth drivers include the ramp-up of its cGMP4 facility, full utilisation of its Project Nectar, and the scaling up of its contract with Chemours. Further expansion of its R32 capacity and the de-bottlenecking of its multi-purpose plant, expected to be completed by Q3 FY27, are also projected to boost operational performance. A healthy order book in the contract development and manufacturing (CDMO) segment adds to the robust growth visibility.

Long-Term Stock Performance in Context

Despite the single-day volatility, Navin Fluorine's stock has delivered strong returns to investors over a longer horizon. In the last 12 months, the share price has appreciated by 56%, significantly outperforming the Nifty 50 index, which advanced by 11% during the same period. This performance reflects the market's confidence in the company's business model and growth prospects in the specialty chemicals space.

Conclusion

Navin Fluorine International's third-quarter results demonstrate strong financial health and operational excellence, with significant year-on-year growth in both revenue and profitability. While the stock experienced short-term volatility, the underlying fundamentals appear solid. The positive outlook from analysts, backed by a clear pipeline of growth projects and capacity expansions, suggests a continued positive trajectory for the company. Investors will be watching closely to see how these strategic initiatives translate into sustained performance in the upcoming quarters.