Stallion India Fluorochemicals Limited — Q3 FY26 earnings call

Call held 6 Feb 2026

Management summary

Stallion India Fluorochemicals reported strong Q3 and 9M FY26 results, with revenue growing 23.2% and 41.7% YoY respectively, and 9M PAT surging 72.8%. The company achieved key milestones including environmental clearance for its 10,000 MT R-32 plant in Bhilwara and strategic partnerships for helium. However, commissioning of Khalapur and Mambattu facilities faced delays due to re-engineering and material imports, pushing timelines to Q4 FY26. Funding for the R32 plant was secured through a promoter share sale after a preferential issue failed due to market volatility.

Highlights

  • Q3 FY26 Revenue of INR 104.87 crores, up 23.2% YoY.

  • 9M FY26 Revenue of INR 321.18 crores, up 41.7% YoY.

  • 9M FY26 PAT of INR 32.9 crores, up 72.8% YoY.

  • Environmental clearance received for 10,000 MT R-32 manufacturing facility at Bhilwara, Rajasthan.

  • Strategic technology tie-up with SYS Advanced for advanced helium recovery and liquefaction systems.

  • Long-term strategic partnership with Sharjah Oxygen for liquid helium sourcing.

Concerns

  • Delays in Khalapur helium plant (originally Dec/Jan, now March end) and Mambattu facility (originally Dec/Jan, now March end/April) due to re-engineering and imported material delays.

  • Preferential issue for funding could not go through due to market volatility, leading to promoter share sale to kickstart R32 plant work.

Key financials

2 periods

Q3 FY26

  • Revenue
    ₹104.87 Cr
    YoY +23.2%
  • EBITDA
    ₹13.56 Cr
  • PAT
    ₹11.12 Cr

9M

  • FY26 Revenue
    ₹321.18 Cr
    YoY +41.7%
  • FY26 EBITDA
    ₹43.69 Cr
    YoY +48.6%
  • FY26 PAT
    ₹32.9 Cr
    YoY +72.8%
  • FY26 EPS
    ₹4.15

What they filed

Q1 FY27: revenue up 10.0%, net profit up 90.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue68 85 152 110 106 +56%105 +24%110 −28%121 +10%
EBITDA2 14 19 14 16 +700%12 −14%16 −16%22 +57%
Net profit1 10 13 10 11 +1000%11 +10%11 −15%19 +90%
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.

Capital allocation

high confidence
  • Capex Capex disclosed Rights issue for R32 plant; internal accruals for helium facilities. Promoter provided interest-free funds from share sale for R32 plant.
    • R-32 manufacturing facility at Bhilwara (10,000 MT) ₹364 Cr
    • Helium facilities in Khalapur and Mambattu ₹15 Cr
    CapEx amount, see, we are raising INR 364 crores we are raising for this, R32 plant... The helium facility in, Khalapur, that work has been concluded... We are also expanding to Mambattu with helium facility... all that comes from the internal accruals of the company... It would be, meaning it would end up being about INR 15-20 Crores... I sold two percent of my shares... That funds all were put into the company interest-free to kickstart the, uh, R32 plant work.
  • Debt Debt disclosed
    currently we are debt-free status. If we want to go for project loan under the MOU that we have signed, on auto basis, we would end up getting project finance also.
  • Liquidity Liquidity disclosed INR 26 crores from IPO proceeds remain unutilized. Management states no issues with funds, can raise project finance in 20-25 days if needed.
    We've got a total of about, I think INR 26 crores unutilized... If we wanted to raise project finance, meaning we absolutely have no issue on that, it would happen in 20-25 days.

Guidance & targets

Revenue

  • FY26 Revenue Revenue · FY26 · High confidence INR 430 crores
    We remain highly confident of achieving our FY twenty-six revenue guidance of INR 430 crores

    — Shazad Rustomji

  • Bhilwara R32 Plant Revenue (FY26) Revenue · FY26 (6 months production) · High confidence INR 275 Crores
    In the first year, we expect, 50 percent production. I've given a target of six months production, so October to March, we expect to have about INR 275 Crores.

    — Shazad Rustomji

  • Bhilwara R32 Plant Revenue (FY27) Revenue · FY27 · High confidence INR 550 Crores
    In the next year, '27, it would be, INR 550 Crores revenue

    — Shazad Rustomji

  • Helium & Specialty Gases Revenue Revenue · within five years (long-term) · High confidence INR 200 Crores
    Our long-term target is, meaning, long term means within five years, our target is INR 200 Crores for helium.

    — Shazad Rustomji

Profitability

  • FY26 PAT Profitability · FY26 · High confidence INR 40 Crores
    and PAT guidance of INR 40 Crores

    — Shazad Rustomji

  • Margin Expansion Profitability · over time · High confidence 3-4%
    margin expansion of three to four percent over time

    — Shazad Rustomji

  • New Products/Business PAT Margin Profitability · High confidence 16-24%
    All the, all the new products that we are getting into and all the new business that we are getting into, all will be having a margin ranging from 16% to 24% PAT. It will enhance our PAT. Currently, that is at 10%. We're looking at enhancing it to 24% percent.

    — Shazad Rustomji

  • Bhilwara R32 Plant PAT (FY26) Profitability · FY26 (6 months production) · High confidence INR 66 Crores
    And the PAT, is at the least expected, meaning 24 percent, so it would be INR 66 Crores PAT.

    — Shazad Rustomji

  • Bhilwara R32 Plant PAT (FY27) Profitability · FY27 · High confidence INR 132 Crore
    and INR 132 Crore PAT, combined with our current, business and the new two facilities starting up.

    — Shazad Rustomji

Growth

  • CAGR Growth · next three years · High confidence 30-35%
    sustaining our targeted thirty to 30-35 percent CAGR over the next three years

    — Shazad Rustomji

Capacity

  • Bhilwara R32 Plant Commissioning Capacity · High confidence August 2026
    expected commissioning by August 2026

    — Shazad Rustomji

  • Bhilwara R32 Plant Production Start Capacity · 2026 · High confidence 1st October
    I have given you a production cycle starting 1st October, not August... timeline provided is for 6 months production in 2026.

    — Shazad Rustomji

  • Mambattu Facility Operational Capacity · High confidence March end or April
    So that also, it should become operational by, March end or April.

    — Shazad Rustomji

  • Khalapur Helium Plant Operational Capacity · March 2026 · High confidence this month end
    I think the plant should be fully operational and ready by this month end.

    — Shazad Rustomji

What to watch in Q4 FY26

Khalapur Helium Plant Operational Status

Next quarter
Current expected by this month end, critical items arriving March first week
Target Fully operational

Why it matters

Confirms the successful commissioning of a key new facility for helium and specialty gases.

In terms of, uh, the helium plant, everything is completed. Every plant and machinery is at site, and, I think the plant should be fully operational and ready by this month end. The last few items, critical items that are not manufactured here and are coming from US, they have already been shipped out. They should be coming by, I think, March first week, they should arrive.

Risks & concerns

  • Market volatility impacting fundraising

    medium

    Market volatility prevented a planned preferential issue, necessitating promoter share sale to fund the R32 plant.

    Management acknowledged

  • Project commissioning delays

    medium

    Khalapur and Mambattu facilities faced delays due to re-engineering, expanded scope, and imported material, pushing operational timelines from Dec/Jan to March/April.

    Analyst acknowledged

Q&A highlights

8 direct
Promoter share sale and funding for R32 plant Direct
So basically, it, it bound us, on, the fundraising. So in the short run, what we did was, uh, I sold two percent of my shares, uh, two, two percent of my shares, and, uh, we raised the funds. That funds all were put into the company interest-free to kickstart the, uh, R32 plant work. It's a time-bound project. We couldn't wait.

Explains the reason behind the promoter's share sale, linking it directly to funding the critical R32 plant due to market volatility impacting a preferential issue.

Asked by Shashank Jha

Delays in Khalapur and Mambattu plant commissioning Direct
Uh, there are multiple reasons for it. Uh, in terms of helium, like I said, the helium plant at Khalapur, uh, operationally, we completely changed in, uh, August, September. We completely changed it from a 200 bar system to a 300 bar system... So the whole, whole thing, uh, got moved back by over 3 months... For Mambattu, when we started the R32 facility, suddenly, number one, it changed a lot of dynamics... The plant itself is scaled up... So that also, it should become operational by, March end or April.

Clarifies the reasons for delays (re-engineering, expanded scope, imported material) and provides revised commissioning timelines for key projects.

Asked by Shashank Jha

Bhilwara plant commissioning timeline Direct
First, the first thing is, we have provided a projection of 6 months of production. That means technically, I have given you a production cycle starting 1st October, not August. So whether I do it in September, whether I do it in July, whether I do it in June, it makes no difference because our projections, uh, confirmation, and, uh, uh, timeline provided is for 6 months production in 2026.

Addresses perceived discrepancy in commissioning dates, clarifying that while completion is by August, the production cycle for financial projections starts October, providing a buffer.

Asked by Aditya Sen

R32 plant capacity and location Direct
Uh- No, no, we are expanding into 10,000 metric tons. Ukhalia is in Bhilwara... It's the same, it's the same- Bhilwara ... It's, it's the same plant only. Ukhalia is the, uh, industrial area. Ukhalia is the name of the village- Okay and Bhilwara is the district.

Clarifies that the 10,000 MT R32 plant is a single facility in Bhilwara (Ukhalia being the village name), correcting analyst's confusion about two separate 10,000 MT plants.

Asked by Arindum Dutta

Funding sufficiency for Bhilwara plant and overall financial strength Direct
We don't have any issues with funds or anything, meaning, basically, see, how, what we are looking at is currently we are debt-free status. If we want to go for project loan under the MOU that we have signed, on auto basis, we would end up getting project finance also. The banks are already tied up into the MOUs, with the government of Rajasthan. So number one. Secondly, it's a greenfield manufacturing facility. The company is listed, so if we wanted to raise project finance, meaning we absolutely have no issue on that, it would happen in 20-25 days.

Reassures investors about the company's strong financial position and ability to fund its projects despite the earlier preferential issue challenge, highlighting debt-free status and access to project finance.

Asked by Ashish Soni

R32 plant CapEx and revenue potential Direct
CapEx amount, see, we are raising INR 364 crores we are raising for this, R32 plant. In the first year, we expect, 50 percent production. I've given a target of six months production, so October to March, we expect to have about INR 275 Crores. And the PAT, is at the least expected, meaning 24 percent, so it would be INR 66 Crores PAT. In the next year, '27, it would be, INR 550 Crores revenue, and INR 132 Crore PAT, combined with our current, business and the new two facilities starting up.

Provides detailed financial projections for the R32 plant's first two years of operation, including CapEx, revenue, and PAT, giving investors a clear picture of its expected contribution.

Asked by Sanchita Sood

Unutilized IPO proceeds and CapEx for helium plants Direct
We have on, See, we've got a total of about, I think INR 26 crores unutilized... The helium facility in, Khalapur, that work has been concluded, meaning that work is getting concluded. We are also expanding to Mambattu with helium facility to give us reach in the south. Now, all that comes from the internal accruals of the company... It would be, meaning it would end up being about INR 15-20 Crores.

Explains the reason for unutilized IPO proceeds (payment upon completion) and quantifies the CapEx for helium facilities, clarifying funding sources (internal accruals).

Asked by Jay Mehta

Long-term helium revenue target Direct
Our long-term target is, meaning, long term means within five years, our target is INR 200 Crores for helium.

Provides a specific long-term revenue target for the helium and specialty gases segment, indicating strategic focus and growth ambition.

Asked by Jay Mehta

3 min read 5 chapters

Detailed narrative

Q3 & 9M FY26 Performance Overview

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.

Strategic Expansion & Project Updates

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.

Funding Strategy & Capital Allocation

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.

Growth Outlook & Margin Expansion

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.

Addressing Project Delays

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.

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