Gujarat Fluorochemicals Q2 FY27 Results Analysis: PAT Jumps 44%, Margin Compresses 270 bps
Gujarat Fluorochemicals Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 1,760.00 Cr (+45.45% YoY) and PAT growth of +43.79% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 03, 2026 |
|---|---|
| Revenue (Q2) | Rs. 1,760.00 Cr (+45.45% YoY) |
| PAT (Q2) | Rs. 243.00 Cr (+43.79% YoY) |
| EBITDA margin | 26.87% (-270 bps YoY) |
| EPS (Q2) | Rs. 22.11 (+43.76% YoY) |
Quarter Snapshot
Revenue grew 45.45% YoY to Rs.1,760 Cr with PAT to owners up 43.79% to Rs.243 Cr, and the EV Products battery ramp delivered its first meaningful revenue of Rs.41 Cr as management guided. The offset is a ~270 bps YoY EBITDA margin compression from input-cost absorption, a widening EV segment loss (Rs.50 Cr PBT) against the FY27 break-even commitment, and rising receivables and inventory. Capex execution is on track at 45.4% of the Rs.3,150 Cr FY27 plan with leverage modest at 0.92x annualized EBITDA.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue/demand | "likely ahead" — mix growth, battery start, tariff relief | Revenue +45.45% YoY, +10.83% QoQ | Played out |
| First EV revenue in Q2 | "some revenue reflecting in the next quarter due to CIF terms" | EV segment revenue Rs.41 Cr | Played out |
| EV loss trajectory | Narrowing vs (30) | Widened to (32) EBITDA / (50) PBT | Contradicted |
| Margins | Mixed — input costs compressing, mix/FX offsetting | Chemicals margin 28.97% (up QoQ, down YoY); management-style gross margin 64.77% vs 71.90% YoY; FX gain Rs.18 Cr | Partially |
| FX tailwind | Rupee ~95.8 aids realizations | Rs.18 Cr net FX gain in P&L | Played out |
| Tariff-relief volume/pricing evidence | Post-24 Jul expiry | Not disclosed by vertical | Not observable |
| PTFE ADD status | Investigation ongoing | Filing silent — remains open for the call | Not addressed in the filing |
| Lithium carbonate headwind to LiPF6 | ~25% September fall feeds formula pricing | Filing silent on realizations; EV loss widened — indirect only | Partially |
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Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Battery chemicals 3-digit revenue exit rate by Q4 FY27 | Q1 FY27 call, 12 Aug 2026 | EV segment revenue Rs.41 Cr vs nil external in Q1 | On Track |
| Battery business EBIT break-even in FY27 | Q2 FY26 call, 11 Nov 2025 | EV PBT loss widened to (50) from (42) — adverse trajectory | Too Early |
| FY27 capex Rs.3,150 Cr (Rs.2,300 Cr EV + Rs.850 Cr Chemicals) | FY26 Integrated Annual Report, 27 Aug 2026 | H1 PPE cash spend Rs.841 Cr + CWIP build Rs.589 Cr = 45.4% of plan at half-year | On Track |
| R134a by end-FY27; R32 full utilization CY27; PVDF H1 FY27; LFP qualification Q3 FY27 | Q1 FY27 / Q4 FY26 calls | Not addressed in the filing | Too Early |
Key Investment Insights
Key Positives
- Consolidated revenue grew 45.45% YoY to Rs.1,760 Cr; H1 revenue Rs.3,348 Cr (+34.38% YoY)
- PAT to owners grew 43.79% YoY to Rs.243 Cr; EPS Rs.22.11 vs Rs.15.38
- EV Products revenue reached Rs.41 Cr vs Rs.3 Cr a year ago, confirming the guided Q2 battery dispatch ramp
- Chemicals segment EBITDA grew 32.55% YoY to Rs.505 Cr with margin improving QoQ to 28.97% from 28.45%
- H1 operating cash flow of Rs.738 Cr was 1.61x PAT; net debt broadly flat at Rs.1,654 Cr (0.92x annualized EBITDA)
- Capex delivery at 45.4% of the Rs.3,150 Cr FY27 plan at half-year, on track
- Standalone revenue grew 50.31% YoY with standalone PAT up 58.46% YoY
Risk Factors
- EBITDA margin compressed ~270 bps YoY to 26.87% from 29.59%; management-style gross margin fell from 71.90% to 64.77% as input costs were absorbed rather than passed through
- EV Products loss widened QoQ — EBITDA loss of Rs.32 Cr vs Rs.30 Cr and PBT loss of Rs.50 Cr vs Rs.42 Cr — against the FY27 EBIT break-even commitment
- Cost of materials grew 54.77% YoY, rising to 38.69% of revenue from 31.82%
- Trade receivables rose Rs.229 Cr since March and inventories Rs.55 Cr QoQ, moving against the 170-180 working-capital-days target
- H1 free cash flow turned negative at Rs.(103) Cr as capex nearly doubled YoY
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.