Navin Fluorine International Ltd (NAVINFLUOR) Q2 FY27 Results Analysis: PAT Jumps 81%, EBITDA Margin Tops Guidance
Navin Fluorine International Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 1,190.74 Cr (+57.00% YoY) and PAT growth of +81.47% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 30, 2026 |
|---|---|
| Revenue (Q2) | Rs. 1,190.74 Cr (+57.00% YoY) |
| PAT (Q2) | Rs. 269.23 Cr (+81.47% YoY) |
| EBITDA margin | 34.22% (+176 bps YoY) |
| EPS (Q2) | Rs. 52.48 (+80.60% YoY) |
Quarter Snapshot
Q2 FY27 delivered 57% YoY revenue growth with Operating EBITDA margin of 34.22% running well above the FY27 guidance band of 30% ±1–2%, while PAT grew 81.47% YoY. H1 free cash flow of Rs.775.74 Cr and a net cash position of Rs.202.42 Cr underpin the capex build-out (CWIP up Rs.174.01 Cr) ahead of Q3 FY27 R32/HFC commissioning. Raw-material inflation lifted materials to 44.90% of revenue, but operating leverage and a Rs.31.03 Cr inventory-change swing absorbed the pressure at the EBITDA line.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue | "revenue likely ahead YoY, in-line-to-better sequentially" | +57.00% YoY, +13.94% QoQ | Played out |
| Margin | "compressing at the gross line, partially offset" by refrigerant prices and the weaker rupee | Gross-line pressure real (materials 44.90% of revenue vs 42.32%) but EBITDA margin flat at 34.22% (+5 bps QoQ) | Partially |
| Guidance path | "intact on revenue"; margin anchor test ahead | H1 margin 34.21% vs 30% ±1–2% guide; filing silent on re-basing | Played out on revenue; anchor question open |
| H2 dilution toward 30% anchor | "more likely narrative risk management flags" | Filing silent | Not observable |
| RM inflation absorbed via inventory carry | "may be absorbed as inventory carry rather than hitting COGS in full" | Inventory-change credit of Rs.25.39 Cr (build) in Q2 vs Rs.5.64 Cr charge in Q1 | Partially |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 consolidated EBITDA margin 30% ±1–2% (full-year, not quarterly) | Q4 FY26 earnings call, reaffirmed Q1 FY27 call | H1 FY27 locked at 34.21% (Q2: 34.22%) — running above band | On Track |
| FY27 revenue growth double-digit | Q4 FY26 earnings call | H1 +50.68% YoY | On Track |
| Employee costs ~7–8% of revenue | Q3 FY26 earnings call | 7.93% in Q2 FY27 | Met |
| R32/HFC (15,000 MTPA) commissioning by Q3 FY27 | Q4 FY26 / Q1 FY27 calls | Not addressed in the filing | Too Early |
| MPP debottlenecking by Q3 FY27 | Q4 FY26 / Q1 FY27 calls | Not addressed in the filing | Too Early |
| cGMP4 Phase II (Rs.125 Cr) by Q4 FY27 | Q1 FY27 call | CWIP +Rs.174.01 Cr over H1 — execution visible but not project-specific | Too Early |
| Chemours completion end-June/early-July 2026 | Q4 FY26 call | Not addressed in the filing | Too Early |
Key Investment Insights
Key Positives
- Consolidated revenue grew 57.00% YoY to Rs.1,190.74 Cr, accelerating from +44% YoY in Q1; H1 revenue up 50.68% YoY
- Operating EBITDA of Rs.407.45 Cr grew 65.52% YoY with margin at 34.22%, up ~176 bps YoY and flat QoQ despite input-cost pressure
- PAT grew 81.47% YoY to Rs.269.24 Cr; H1 PAT of Rs.512.55 Cr is up 93.02% YoY
- Basic EPS rose to Rs.52.48 from Rs.29.06 YoY (+80.6%)
- H1 free cash flow of Rs.775.74 Cr vs negative Rs.23.57 Cr in H1 FY26; CFO up 62.51% YoY to Rs.456.46 Cr
- Net cash position strengthened to Rs.202.42 Cr, up Rs.108.20 Cr over the half; gross borrowings down Rs.19.24 Cr
- Net working capital days improved to 65.1 from 81 in Q1; inventories drawn down and receivables grew slower than revenue
- Employee costs held at 7.93% of revenue, within the guided ~7–8% band
Risk Factors
- Cost of materials consumed rose to 44.90% of revenue from 42.32% in Q1 and 39.16% in Q2 FY26, reflecting raw-material inflation (fluorspar/HF/sulfur)
- Q2 EBITDA was flattered by a Rs.31.03 Cr favourable QoQ swing in the changes-in-inventories line (Rs.25.39 Cr credit vs Rs.5.64 Cr charge in Q1)
- Standalone EBITDA margin dipped QoQ to 32.26% from 35.27%, indicating part of consolidated strength sits in subsidiaries
- H1 CFO/PAT of 0.89x (standalone 0.76x) reflects working-capital absorption, with a Rs.37.77 Cr reduction in payables
- Other income of Rs.50.69 Cr in H1 includes Rs.39.42 Cr of non-operating content (Rs.30.74 Cr investment-sale gain, Rs.8.68 Cr FVTPL gains)
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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.