Gujarat Fluorochemicals Q2 FY27 Results Analysis: PAT Jumps 44%, Margin Compresses 270 bps

Cofacto Research Published November 03, 2026 4 min read

Positive

Gujarat Fluorochemicals Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 1,760.00 Cr (+45.45% YoY) and PAT growth of +43.79% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details

Results date	November 03, 2026
Revenue (Q2)	Rs. 1,760.00 Cr (+45.45% YoY)
PAT (Q2)	Rs. 243.00 Cr (+43.79% YoY)
EBITDA margin	26.87% (-270 bps YoY)
EPS (Q2)	Rs. 22.11 (+43.76% YoY)

Quarter Snapshot

Revenue grew 45.45% YoY to Rs.1,760 Cr with PAT to owners up 43.79% to Rs.243 Cr, and the EV Products battery ramp delivered its first meaningful revenue of Rs.41 Cr as management guided. The offset is a ~270 bps YoY EBITDA margin compression from input-cost absorption, a widening EV segment loss (Rs.50 Cr PBT) against the FY27 break-even commitment, and rising receivables and inventory. Capex execution is on track at 45.4% of the Rs.3,150 Cr FY27 plan with leverage modest at 0.92x annualized EBITDA.

Q2 FY27 Expectations vs Results

Driver	Expected before results	What happened	Verdict
Revenue/demand	"likely ahead" — mix growth, battery start, tariff relief	Revenue +45.45% YoY, +10.83% QoQ	Played out
First EV revenue in Q2	"some revenue reflecting in the next quarter due to CIF terms"	EV segment revenue Rs.41 Cr	Played out
EV loss trajectory	Narrowing vs (30)	Widened to (32) EBITDA / (50) PBT	Contradicted
Margins	Mixed — input costs compressing, mix/FX offsetting	Chemicals margin 28.97% (up QoQ, down YoY); management-style gross margin 64.77% vs 71.90% YoY; FX gain Rs.18 Cr	Partially
FX tailwind	Rupee ~95.8 aids realizations	Rs.18 Cr net FX gain in P&L	Played out
Tariff-relief volume/pricing evidence	Post-24 Jul expiry	Not disclosed by vertical	Not observable
PTFE ADD status	Investigation ongoing	Filing silent — remains open for the call	Not addressed in the filing
Lithium carbonate headwind to LiPF6	~25% September fall feeds formula pricing	Filing silent on realizations; EV loss widened — indirect only	Partially

Read our full results preview.

Management Guidance vs Delivery

What management said	Where	What happened	Verdict
Battery chemicals 3-digit revenue exit rate by Q4 FY27	Q1 FY27 call, 12 Aug 2026	EV segment revenue Rs.41 Cr vs nil external in Q1	On Track
Battery business EBIT break-even in FY27	Q2 FY26 call, 11 Nov 2025	EV PBT loss widened to (50) from (42) — adverse trajectory	Too Early
FY27 capex Rs.3,150 Cr (Rs.2,300 Cr EV + Rs.850 Cr Chemicals)	FY26 Integrated Annual Report, 27 Aug 2026	H1 PPE cash spend Rs.841 Cr + CWIP build Rs.589 Cr = 45.4% of plan at half-year	On Track
R134a by end-FY27; R32 full utilization CY27; PVDF H1 FY27; LFP qualification Q3 FY27	Q1 FY27 / Q4 FY26 calls	Not addressed in the filing	Too Early

Key Investment Insights

Key Positives

Consolidated revenue grew 45.45% YoY to Rs.1,760 Cr; H1 revenue Rs.3,348 Cr (+34.38% YoY)
PAT to owners grew 43.79% YoY to Rs.243 Cr; EPS Rs.22.11 vs Rs.15.38
EV Products revenue reached Rs.41 Cr vs Rs.3 Cr a year ago, confirming the guided Q2 battery dispatch ramp
Chemicals segment EBITDA grew 32.55% YoY to Rs.505 Cr with margin improving QoQ to 28.97% from 28.45%
H1 operating cash flow of Rs.738 Cr was 1.61x PAT; net debt broadly flat at Rs.1,654 Cr (0.92x annualized EBITDA)
Capex delivery at 45.4% of the Rs.3,150 Cr FY27 plan at half-year, on track
Standalone revenue grew 50.31% YoY with standalone PAT up 58.46% YoY

Risk Factors

EBITDA margin compressed ~270 bps YoY to 26.87% from 29.59%; management-style gross margin fell from 71.90% to 64.77% as input costs were absorbed rather than passed through
EV Products loss widened QoQ — EBITDA loss of Rs.32 Cr vs Rs.30 Cr and PBT loss of Rs.50 Cr vs Rs.42 Cr — against the FY27 EBIT break-even commitment
Cost of materials grew 54.77% YoY, rising to 38.69% of revenue from 31.82%
Trade receivables rose Rs.229 Cr since March and inventories Rs.55 Cr QoQ, moving against the 170-180 working-capital-days target
H1 free cash flow turned negative at Rs.(103) Cr as capex nearly doubled YoY