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Navin Fluorine International (NAVINFLUOR): Q2 FY27 results analysis (Quarter ended 30 Sep 2026)

Navin Fluorine International (NAVINFLUOR) No replies

Vishal @vishal #1

All figures consolidated, ₹ crore unless stated. Results approved on 30 Oct 2026. YoY/QoQ % and margins are my calculations; Q1 FY27 revenue and EBITDA are derived from H1 totals.

Metric Q2 FY27YoYQoQ
Revenue from ops1,190.7+57.0%+14.0%
Operating EBITDA407.5+65.6%+14.1%
EBITDA margin34.2%32.5%34.2%
PAT269.2+81.4%+10.7%
PAT margin22.6%19.6%23.3%
Other income~15.6––

For margin rows, the YoY and QoQ columns show the prior-period value.

Quality of earnings

Growth is operational and broad-based [4]:

  • High Performance Products (refrigerant gases): ₹604 cr, +49%.
  • Specialty Chemicals: ₹348 cr, +58%.
  • CDMO (contract manufacturing for pharma): ₹239 cr, +78%.

Other income is small, about ₹16 cr against PAT of ₹269 cr (my calculation from [3]).

Base effect: Q2 FY26 was not a weak base. It was itself a breakout quarter, with EBITDA up 129% YoY and a 32.5% margin [5]. So growing 57% on top of that is a genuine step-up (my view).

QoQ, revenue and EBITDA both rose 14%, but PAT rose only 11%. The gap points to higher depreciation and interest as new capacity comes in (interpretation; the line items weren't in the coverage I found).

Margins (Chart 3)

Operating EBITDA margin over five quarters: 32.5% → 34.5% → 34.2% → 34.2% → 34.2%. It has held at about 34% for four quarters. Management attributes the earlier expansion to new molecules and operating leverage [8].

Guidance: what changed

  • Margin: at Q4 FY26, management guided FY27 EBITDA margin at about 30%, plus or minus 1–2%. H1 is at 34.2% [4], well above. The guide looks conservative so far (my view).
  • Capacity: a ₹240 cr project adding 15 ktpa of R-32 refrigerant [8], and the Dahej multipurpose plant debottlenecking, are both targeted for Q3 FY27 [9].
  • Working capital: guided at 75–80 days.
  • Dividend: interim ₹8 per share (400%).

Market reaction

Navin Fluorine rose 5.1% on 30 Oct.

Positives

  • All three businesses growing 49–78%
  • Margins steady at ~34%, above guidance
  • CDMO scaling up fast (+78%)

Concerns

  • The stock already prices in a lot after a strong FY26 (my view)
  • PAT growing slower than EBITDA QoQ
  • Refrigerant gases (HPP, half of revenue) are exposed to global regulation and pricing cycles [11]

Things to track in Q3 FY27

  1. Commissioning of the R-32 and Dahej projects
  2. EBITDA margin vs the 30% guide
  3. CDMO order flow
  4. Working capital days

Not a buy/sell recommendation. I am not a SEBI-registered analyst. Facts are sourced; opinions are labelled.

Sources [1] Upstox, 30 Oct 2026 · [2] Sahi – EBITDA · [3] InvestyWise – results filing · [4] InvestyWise – Q2 FY27 presentation · [5] Business Standard/Capital Market – Q2 FY26 · [6] ICICI Direct – Q3 FY26 · [7] Business Standard – Q4 FY26 · [8] ICICI Securities – Q4 FY26 note · [9] AlphaSpread – Q4 FY26 call · [10] Evening market wrap, 30 Oct 2026 (this series) · [11] ScanX – Kigali/HFC context · [12] Quartr – FY24 · [13] ScanX – FY26

Charts: (1) last 5 quarters revenue & PAT ; (2) FY23–FY26 revenue & PAT; (3) operating EBITDA margin and PAT margin (own calc.).

Author's disclosure: Not invested

Posts are members’ own views and are not investment advice. Holdings shown are what each member disclosed when posting. Research notes are by SEBI-registered analysts under their own registration; Mudraa hosts them and does not endorse them.

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