Stallion India Fluorochemicals FY26: Profitability Improves as the Company Prepares for Backward Integration

Stallion India Fluorochemicals Limited closed FY25-26 with stronger profitability and a clear near-term focus on capacity expansion and backward integration. In FY26, the company reported total revenue of ₹434.12 crore, up 14.4 percent year-on-year. EBITDA grew faster than revenue, rising 23.34 percent to ₹61.35 crore, and PAT increased 35.61 percent to ₹43.84 crore.

The company’s commentary linked FY26 performance to operational agility across sourcing, inventory planning, and servicing capabilities amid volatility in energy markets and supply chains. Management also positioned FY26 as a transition year toward a broader integration roadmap, with a major R-32 manufacturing project and expansion into helium and specialty gases.

FY26 performance: margins expand faster than sales

The financial tables in the investor presentation show a steady improvement in operating profitability. EBITDA margin rose to 14.13 percent in FY26 from 13.11 percent in FY25, while PAT margin expanded to 10.10 percent from 8.52 percent.

A notable driver in the year-on-year profit bridge was the reduction in finance costs. Finance costs declined sharply to ₹0.89 crore in FY26 from ₹6.15 crore in FY25, while depreciation increased to ₹1.48 crore from ₹1.17 crore as the asset base expanded.

These numbers reflect reported figures in the presentation, where the company reports revenue and profits in ₹ lakhs and also summarises the same in ₹ crore terms in management commentary.

Business model and footprint: debulking, blending, and distribution

Stallion describes itself as a specialised provider of refrigerant and industrial gases, with capabilities spanning debulking, blending, processing, laboratory testing, and cylinder filling. The company operates across four facilities at Khalapur (Maharashtra), Ghiloth (Rajasthan), Manesar (Haryana), and Panvel (Maharashtra), and states that two additional facilities are under development.

The product portfolio is described across three broad categories.

First is refrigerants, including HFCs, HFC blends, HFOs, and hydrocarbons. Second is non-refrigerant specialty gases used across applications such as blowing agents, fire extinguishants, insulating gases, aerosols, and cleaning agents. Third is “others”, which includes aftermarket accessories and ancillary products for the allied air-conditioning and refrigeration fields. The presentation also highlights a strategic push into liquid helium and semiconductor or electronics-related gases.

The company repeatedly positions its distribution footprint as a competitive advantage, highlighting pan-India reach, decentralised operations, and customer servicing. Management also states that the company focuses on aftermarket customers, describing them as a higher-margin part of the market.

The integration roadmap: R-32 manufacturing as the defining near-term project

The largest near-term strategic initiative is the proposed R-32 manufacturing facility in Bhilwara, Rajasthan. The company states it has received Environmental Clearance from SEIAA, Rajasthan for a 10,000 MT per annum R-32 plant. The presentation notes that the clearance was granted on 28 December 2025 and is valid for 10 years.

Key project details in the presentation include R-32 capacity of 10,000 MT per annum, a by-product of hydrochloric acid (30 percent), and blended refrigerants capacity of 7,500 MT per annum in aggregate. The company states construction has commenced, with an expected commissioning in October 2026, and mentions a target completion period of around eight months.

The presentation also puts forward estimated revenue potential. It mentions topline potential of ₹250 crore in FY26-27 and ₹500 to ₹600 crore in FY27-28, along with an expected PAT margin of 22 to 24 percent. These are projections and are explicitly forward-looking.

In the earnings call, management described the project as a major milestone in the company’s backward integration journey. Management also responded to questions on capex progress and indicated that capex recognition may appear low in work-in-progress because of the company’s stated conservative payment practices, with payments linked to delivery and commissioning.

Quota policy remains a dependency. When asked about quota allocation for R-32, management stated that the government will release details in FY27 and expressed an expectation of receiving a quota aligned with the 10,000 ton capacity, while not providing confirmation of the mechanics.

Expansion in helium and specialty gases: high-value diversification with supply risks

Alongside refrigerants, the company is pushing into high-purity helium and specialty gases used in semiconductors and electronics manufacturing. The presentation mentions investment in liquid helium processing capacity of 1,200 MT per annum at Khalapur, and the concall states the helium facility is near completion with final testing underway.

Stallion also disclosed a long-term strategic sourcing partnership with Sharjah Oxygen Company L.L.C. The presentation states that liquid helium is sourced from RAS Gases and Oilfields, Qatar, and positions the partnership as a framework for improved supply security, quality assurance, and sourcing economics.

However, management also noted in the concall that helium production and transport can be affected by disruptions in the Qatar region. This highlights a key risk for the helium initiative, even as management frames the current environment as supportive for pricing.

Mambattu facility: South India expansion and HFO and HFC blending

The company is also building a new debulking and blending facility at Mambattu in Andhra Pradesh. The presentation states a planned capacity of 7,200 MT per annum and a targeted completion by end of Q1 FY26-27. Management said on the call that Mambattu should be operational by August and that the scope was scaled up versus initial plans, including a larger set of tanks and added capability for hydrocarbons and helium or specialty gases.

The Mambattu facility is positioned as a way to strengthen the company’s South India presence, shorten delivery timelines, and support growth in next-generation refrigerants, including HFO-related blends.

Management guidance and what to track

Management reiterated a forward-looking growth ambition, stating a target revenue CAGR of 30 to 35 percent over the next three years and an expected margin improvement of 3 to 4 percent, linked to backward integration and higher value products.

The call also included a longer-term plan statement, with management stating a target to reach ₹3,000 crore revenue and ₹500 crore PAT by 2030. These are management aspirations and depend heavily on execution, commissioning timelines, quota frameworks, and market conditions.

Investors tracking execution will likely focus on three measurable items disclosed in the documents.

First is commissioning progress for Bhilwara R-32, where the company has communicated October 2026 as the expected start. Second is stabilisation and ramp-up of helium handling at Khalapur and progress on Mambattu. Third is whether the company can sustain and improve margins as it moves from a largely processing and distribution model to manufacturing.

Bottom line

FY26 marks a year of improved profitability for Stallion India Fluorochemicals, with PAT growing faster than revenue and reported margins expanding. The strategic roadmap is anchored on backward integration through an R-32 manufacturing facility, alongside expansion into helium and specialty gases and a new South India facility.

The near-term opportunity is clear in the company’s own disclosures: a manufacturing project with projected commissioning in October 2026 and projected profitability that is materially higher than the current base business. At the same time, dependencies such as execution timelines, quota policy for R-32, and supply chain volatility for helium remain key variables that investors will need to watch closely.