Navin Fluorine International Limited — Q4 FY26 earnings call

Call held 29 Apr 2026

Management summary

Navin Fluorine International Limited reported strong Q4 and FY26 results, demonstrating resilient growth across all business verticals despite a challenging global environment. The company achieved significant revenue and EBITDA growth, improved operational efficiency, and maintained a healthy balance sheet. Strategic capex projects are on track, and management remains focused on disciplined growth and long-term value creation, supported by a robust order book and diversified product portfolio.

Highlights

  • Q4 FY26 Revenue of ₹938 crores, up 34% YoY, marking 6 consecutive quarters of growth.

  • Q4 FY26 Operating EBITDA of ₹321 crores, up 80% YoY, with margin expansion to 34.2%.

  • FY26 Net Operating Revenues of ₹3,314 crores, up 41%, driven by broad-based momentum across all segments.

  • Net working capital days improved to 74 days from 90 days, reflecting stronger operational efficiency.

  • Final dividend of ₹8.6 per equity share declared, representing 430% of face value.

Concerns

  • HPP segment saw a sequential revenue decline in Q4 FY26 due to planned shutdowns and opportunistic catalyst recharge, impacting ₹15-16 crores.

  • Agrochemical market is undergoing a slow reset, with volume recovery but pricing lagging.

  • Potential for increased competition in R32 capacity by 2027, though management emphasizes quota importance.

Key financials

2 periods

Q4 FY26

  • Revenue
    ₹938 Cr
    YoY +34%
  • Operating EBITDA
    ₹321 Cr
    YoY +80%
  • Operating EBITDA Margin
    34.2%

FY26

  • Net Operating Revenues
    ₹3,314 Cr
    YoY +41%
  • Operating EBITDA
    ₹1,082 Cr
    YoY +100%
  • Operating EBITDA Margin
    32.6%
  • PAT
    ₹664 Cr
    YoY +129.7%

What they filed

Q1 FY27: revenue up 44.1%, net profit up 107.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue519 606 701 725 758 +46%892 +47%938 +34%1,045 +44%
EBITDA107 147 179 207 246 +130%308 +110%321 +79%357 +72%
Net profit59 84 95 117 148 +151%185 +120%213 +124%243 +108%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Q4 FY26 Revenue
₹939 Cr Total
  • HPP Business ₹393 Cr 41.9%
  • Specialty Chemicals ₹360 Cr 38.3%
  • CDMO Business ₹186 Cr 19.8%

Capital allocation

high confidence
  • Capex Capex disclosed
    • Additional HFC capacity expansion (R32)
    • Dahej MPP debottlenecking
    • Chemours project
    • AHF plant commissioning
    As we look ahead to the new financial year, we see commissioning and ramping up of additional HFC capacities of 32 MPP and the upcoming Chemours project. These projects will transition from investment phase to revenue generation in this year.
  • Debt 0.0× EBITDA
    As of 31 March 2026, our net debt to equity stood at 0.01x negligible, while both ROE and ROCE improved at 20% and 21%, respectively.
  • Dividend ₹8.6/share (final)
    I am glad to inform you that the Board in today's meeting has declared a final dividend of INR8.6 per equity share, 430% of the face value of INR2 per share.
  • Liquidity Liquidity disclosed Company maintains a strong balance sheet with continued focus on capital allocation.
    We will maintain a strong balance sheet with continued focus on capital allocation to deliver long-term shareholder value.

Guidance & targets

Capacity

  • Additional HFC capacity (R32) Capacity · Q3 FY27 · High confidence 15,000 metric tons per annum
    Our additional HFC capacity expansion equivalent to 15,000 metric tons per annum of R32 remains on track for commissioning in quarter 3 FY27.

    — Nitin Kulkarni

Capex

  • Dahej MPP debottlenecking capex Capex · Q3 FY27 · High confidence Commissioning
    Our Dahej MPP debottlenecking capex is progressing well and is targeted for commissioning in quarter 3 FY27.

    — Nitin Kulkarni

Project Completion

  • Chemours project Project Completion · end June, early July · High confidence Completion
    The Chemours project is on track and expected to be completed by end June, early July.

    — Nitin Kulkarni

Working Capital

  • Net working capital days Working Capital · Going forward · High confidence 75-80 days

    Previously 90 days → 75-80 days

    Going forward, the net working capital is expected to be in the range of 75 to 80 days versus our previous indicative guidance of 90 days of sales.

    — Anish Ganatra

CDMO

  • CDMO revenue target CDMO · FY27 · High confidence $100 million
    So there's a very healthy balanced portfolio there. As we look into coming into our FY27 number that we've always said of $100 million, this number that we've delivered this year of INR541 crores is again a solid sort of journey to kind of get to where we want to get to by FY27.

    — Anish Ganatra

Capacity Utilization

  • Overall capacity utilization Capacity Utilization · coming year · Medium confidence 70-75%

    From 50-60% today

    And we've always said that our endeavor would be to be around 50%, 60% capacity utilization this year. That would go to about 70%, 75% in the coming year.

    — Anish Ganatra

Profitability

  • EBITDA margin Profitability · whole year · High confidence 30% plus/minus 1-2%
    So to answer your first question on the margin guidance, I mean, we've always maintained that we will endeavor to do 30%. Given what we know today of the business circumstances, plus/minus 1% to 2%, which we've always said, yes. So that we will hold for the whole year.

    — Anish Ganatra

HPP Business

  • R32 revenue potential HPP Business · Medium confidence INR 600-825 crores
    in our presentation we are talking of a revenue potential from R32 the tune of INR600 crores to INR825 crores.

    — Sanjesh Jain (quoting company presentation)

What to watch in Q1 FY27

HFC R32 capacity commissioning

Q3 FY27
Current On track
Target Commissioning in Q3 FY27

Why it matters

This new capacity is a key driver for future revenue generation and growth in the HPP segment.

Our additional HFC capacity expansion equivalent to 15,000 metric tons per annum of R32 remains on track for commissioning in quarter 3 FY27.

Risks & concerns

  • Geopolitical uncertainties and supply chain disruptions

    medium

    Challenging global environment and geopolitical uncertainties, with implications on energy prices, logistics, and supply chain disruptions.

    Management acknowledged

  • Raw material price inflation

    medium

    Inflation has gone through, but the company has been able to pass on costs to customers, maintaining 45 days inventory.

    Management mitigated

  • Agrochemical market reset and pricing lag

    medium

    Slow reset happening in the agrochemical market, with volume recovery but pricing lagging.

    Management acknowledged

  • Potential R32 overcapacity by 2027

    low

    Competition might add capacity, but management emphasizes that quota availability under Kigali rules is the key factor, not just capacity.

    Analyst downplayed

  • Global demand slowdown due to high oil prices

    low

    Concern that sustained $150 oil prices could lead to global demand slowdown, though not currently observed by management.

    Analyst not addressed

Q&A highlights

5 direct, 1 evasive
Raw Material Availability and Inflation Pass-through Direct
So far, we have not seen any disruption. We have seen inflation go through. But fortunately, we've also been able to pass on a lot of these back to the customers.

Addressed concerns about supply chain disruptions and the company's ability to pass on raw material inflation to customers, indicating resilience.

Asked by Sanjesh Jain

R32 Quota and Pricing Strategy Direct
And you should remember that quota is only going to be available as aligned with the Kigali protocol, which is '24, '25, '26 average production and 65% of your GWP or HCFC of 2009 and '10, right? So that doesn't change. And while we can bring in capacity, I think the key question is, is the quota available or not to anybody bringing in those capacities.

Clarified the company's understanding of R32 quota allocation under Kigali protocol, suggesting that capacity alone is not sufficient without the corresponding quota, which is a competitive advantage.

Asked by Sanjesh Jain

Agrochemical Market Outlook and CDMO Pipeline Direct
If you look at FY26, we have done in all, I believe, close to about 13 new molecules during the year. And that, along with the demand sort of resurfacing gives us enough confidence to say that as we look into FY27, we have visibility almost up to about 80% of our capacity utilization. ... we are working close to about 50, 55 molecules, half of them being in late-stage commercial and half of them being in early stages.

Provided insights into the company's strategy to mitigate agrochemical market weakness through new molecules and confirmed a robust CDMO pipeline with a balanced mix of early and late-stage molecules.

Asked by Sanjesh Jain

Future Capex for Chemours Project Partial
Premature to talk what it will be today. But I think it's fair to assume that we are the only manufacturing site for Chemours given the nature of the product that it is essential to support.

While not giving specific numbers, management indicated the strategic importance of their Chemours partnership and potential for future capex based on market adoption, highlighting their unique position.

Asked by Naushad Choudhary

Fermion Contract Pricing Revision Evasive
I will leave you to your judgment. These are commercial things we deal with it, but it's not something we can talk on any sort of forum outside the company.

Management declined to discuss specific commercial terms of the Fermion contract, indicating the sensitivity and proprietary nature of such agreements.

Asked by Naushad Choudhary

HPP Segment Q-o-Q Revenue Decline Direct
So these are things in terms of -- every of these plants have planned shutdowns, right? And we had taken a planned shutdown in our Q4, and we also took an opportunistic exercise to recharge the catalyst in one of our plants. This is ahead of the heat season to maximize the value in quarter 1 of this year. So that's just normal routine activity. Yes plus Middle East, obviously, as you know and I've said this before that we had no shipments in the Middle East, which was close to about INR15 crores to INR16-odd crores.

Provided a clear explanation for the sequential decline in HPP revenue, attributing it to temporary operational factors (planned shutdowns, catalyst recharge) and specific market conditions (no Middle East shipments), rather than underlying demand issues.

Asked by Arun Prasath

Nectar Project Utilization and Other Customers Direct
So on Nectar, you know that apart from the marquee customers, there are 2 to 3 other customers. So we are going through qualification campaigns. We are not figuring out. We are actually working on a plan and that plan is to get the qualification done and then the sales. We think it is slower than what we would have liked it to be. So therefore, we are talking of the 75% this year and then the balance next year.

Clarified the strategy for the Nectar project beyond the marquee customer, indicating ongoing efforts to qualify additional customers and a realistic timeline for achieving full utilization.

Asked by Keyur Pandya

Gross Margin Stability vs CDMO Ramp-up Partial
So margin expansion in a diversified business is linked, not just between business mixes, but also the portfolios that you play within each vertical. Specialty has different molecules. This has different molecules. So there's both an intra business play and an interbusiness play, yes. So you should factor in both. It's sort of a combination of both that results in that number.

Explained that gross margin dynamics are complex, influenced by both inter-segment and intra-segment product mix, rather than a simple correlation with CDMO ramp-up, providing a nuanced view of profitability.

Asked by Abhijit Akella

2 min read 6 chapters

Detailed narrative

Q4 and FY26 Performance Overview

Navin Fluorine International Limited delivered a strong performance in Q4 FY26 and for the full financial year. Q4 FY26 consolidated revenue stood at ₹938 crores, marking a 34% year-on-year growth. Operating EBITDA increased by 80% year-on-year to ₹321 crores, with margins expanding to 34.2%. For the full year FY26, net operating revenues grew by 41% to ₹3,314 crores, and Operating EBITDA more than doubled to ₹1,082 crores, with margins at 32.6%, an expansion of 992 basis points. Profit after tax for FY26 was ₹664 crores, up 129.7% from ₹289 crores in FY25.

Segmental Performance Highlights

All three business verticals contributed to the growth. The HPP business saw a 20% year-on-year revenue growth in Q4 FY26, reaching ₹393 crores, driven by improved realization and volume. The Specialty Chemicals vertical grew by 39% year-on-year to ₹360 crores in Q4 FY26, reflecting strong execution in both existing and new molecules. The CDMO business demonstrated robust growth, with Q4 FY26 revenue increasing by 61% year-on-year to ₹186 crores, supported by a balanced mix of early, late-stage, and commercial molecules.

Strategic Growth Initiatives & Capex Execution

The company is actively executing several strategic projects. The AHF plant was successfully commissioned and commercial supplies have commenced. Additional HFC capacity expansion (15,000 metric tons per annum of R32) is on track for commissioning in Q3 FY27. The Dahej MPP debottlenecking capex is also progressing well, targeting commissioning in Q3 FY27. The Chemours project is on track for completion by end June, early July, which is expected to accelerate market adoption.

Financial Health and Capital Allocation

Navin Fluorine maintains a strong financial position, with net working capital days improving to 74 days from 90 days, and an expected range of 75-80 days going forward. The net debt to equity ratio stood at a negligible 0.01x as of March 31, 2026. Both Return on Equity (ROE) and Return on Capital Employed (ROCE) improved to 20% and 21% respectively. The Board declared a final dividend of ₹8.6 per equity share, representing 430% of the face value.

Raw Material and Geopolitical Environment Impact

Management acknowledged the challenging global environment and geopolitical uncertainties, which have implications on energy prices, logistics, and supply chain disruptions. However, the company has not experienced any material disruptions and has been successful in passing on raw material inflation to customers. They maintain a 45-day inventory to mitigate risks and focus on agility in response to market changes.

Outlook and Future Growth Drivers

The company expects continued growth, with a focus on niche chemistries and value creation. They anticipate 70-75% capacity utilization in the coming year, up from 50-60% this year. The CDMO business aims for a $100 million revenue target by FY27. The HPP business is expected to benefit from increasing adoption of low GWP refrigerants and export opportunities, with R32 revenue potential estimated between ₹600-825 crores.

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