Stallion India

Stallion India Fluorochemicals reported a strong financial performance for Q3 and 9M FY26, reflecting continued execution of its integrated business model. For Q3 FY26, total revenue reached INR 104.87 crores, marking a 23.2% year-on-year growth, with EBITDA at INR 13.56 crores and PAT at INR 11.12 crores. The nine-month period saw total revenue increase to INR 321.18 crores, a 41.7% year-on-year growth, with EBITDA growing 48.6% to INR 43.69 crores and PAT surging 72.8% to INR 32.9 crores. Earnings per share for 9M FY26 stood at INR 4.15, up from INR 3.10 in the prior year.

The company made significant progress on its integration roadmap, securing environmental clearance for its 10,000 MT per annum R-32 manufacturing facility at Bhilwara, Rajasthan, with commissioning expected by August 2026 and production starting October 2026. This facility is projected to contribute INR 275 crores in revenue and INR 66 crores in PAT for FY26 (6 months production). Additionally, Stallion is expanding its industrial footprint with a new HFO/HFC blending and rebulking facility at Mambattu, Andhra Pradesh, expected to be operational by March end or April. The Khalapur helium plant, after re-engineering for a 300 bar system, is expected to be fully operational by March end.

Stallion India maintains a debt-free status and has outlined its funding strategy for the significant CapEx. The R32 plant in Bhilwara requires INR 364 crores, which will be funded through a forthcoming rights issue. Due to market volatility^🌐 impacting a planned preferential issue, the promoter sold a portion of their shares to provide interest-free funds to kickstart the R32 plant work, demonstrating commitment. The company also confirmed access to project finance through MOUs with the Rajasthan government, if needed, and stated that INR 26 crores from IPO proceeds remain unutilized, as payments are made upon work completion.

Management reaffirmed its FY26 revenue guidance of INR 430 crores and PAT guidance of INR 40 crores, expressing high confidence based on the strong nine-month performance. The company targets a 30-35% CAGR over the next three years, driven by backward integration, higher value products, and an expected 3-4% margin expansion over time. New products and businesses are anticipated to achieve a PAT margin ranging from 16% to 24%, significantly higher than the current 10%. The long-term target for helium and specialty gases revenue within five years is set at INR 200 crores, supported by multiple regional plants to achieve significant market share.

Management addressed concerns regarding delays in the Khalapur and Mambattu facilities, explaining that the Khalapur helium plant underwent a complete re-engineering from a 200 bar to a 300 bar system, pushing its operational timeline by over three months to March end. The Mambattu facility's scope was also significantly scaled up to cater to a larger export market and integrate R32 production, effectively making it almost two plants in one, leading to a revised operational timeline of March end or April. Management emphasized that these changes were strategic enhancements rather than simple delays.