Gujarat Fluorochemicals (FLUOROCH IN) – Q4FY26 Result Update – Strong fluoropolymer performance supports Q4 growth – Downgrade to ‘REDUCE’
Published on 27 May 2026
FLUOROCHEM reported consolidated revenue from operations of Rs13.6bn in Q4FY26, up 11.8% YoY and 20.5% QoQ. The Fluoropolymers segment grew 19% YoY, driven by higher volumes and improved realizations across key products. Existing capacities are operating at optimal utilization levels, the company had announced a Rs2.5bn capex for expanding its new fluoropolymer portfolio. Near-term growth is expected to be supported by increasing applications in semiconductors, EVs/BESS, and clean energy sectors. The Fluorochemicals segment declined by 2% YoY but grew 63% QoQ, aided by a favourable pricing environment. The company also commenced production and sales of R32 in March’26. The Bulk Chemicals segment recorded 1% YoY growth, though revenue declined 3% sequentially. The Battery Chemicals segment contributed Rs150mn to revenue during the quarter, with management indicating FY27 and FY28 as key growth years. We believe that the Fluoropolymers business is expected to remain the primary growth driver, the Battery Chemicals segment may take longer than anticipated to make a meaningful contribution to the topline, with LiPF₆ likely to be the only significant revenue contributor in FY27. The stock is currently trading at 53x FY28E EPS. We value the company at 49x FY28E EPS and arrive at a target price of Rs3,478. We downgrade to REDUCE rating on the stock.
