Q2 2026 Gujarat Fluorochemicals Ltd Earnings Call Transcript
Key Points
- Gujarat Fluorochemicals Ltd (BOM:542812) reported a 26% year-on-year increase in EBITDA for Q2 FY26, reaching INR381 crores.
- The company's EBITDA margin improved by 608 basis points to 32%, driven by a better product mix and cost optimizations.
- The chemicals segment's PAT grew by 51% year-on-year, reflecting strong profitability.
- The company is well-positioned to capitalize on the growing demand for battery materials, with commercial sales expected to commence in the second half of calendar year '26.
- Gujarat Fluorochemicals Ltd (BOM:542812) is expanding its capacity in the battery materials segment, with a focus on non-China integrated LiPF6 production, which has seen a price increase from USD 10 per kg to USD 17 per kg.
- The company's revenue for the chemicals segment only increased by 2% year-on-year, impacted by US tariffs.
- Fluoropolymer segment revenue declined by 4% quarter-on-quarter due to higher US tariffs.
- Fluorochemicals business revenue declined by 15% year-on-year, affected by reduced sales of R22 and R-125 due to market conditions and US tariffs.
- The company faces challenges in the US market due to tariffs, impacting new fluoropolymer sales.
- Working capital days have increased significantly from 120 days in FY22 to 182 days, affecting liquidity.
Ladies and gentlemen, good day, and welcome to 2Q FY26 Conference Call hosted by B&K Securities. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Rohit Nagraj from B&K Securities. Thank you, and over to you, sir.
Thanks, Manish. We thank the management of Gujarat Fluorochemicals Limited for providing us the opportunity to host the 2Q FY26 post-results conference call. Today from the management, we have with us Dr. Bir Kapoor, the CEO and Deputy Managing Director of Gujarat Fluorochemicals and along with him, (inaudible) members of the management team. Without taking further time, I would like to hand over the call to Dr.
Bir Kapoor for his initial remarks, post which we can proceed to Q&A session. Thanks, and over to you, sir.
Thank you, Rohit. Good afternoon, everyone, and a
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