According to The Economic Times, Gujarat Fluorochemicals shares have gained nearly 34% in the past three months, with the stock now trading at a record high of ₹4,958.90 and 53% gains in just six months. The company reported 24% year-on-year growth in revenue and 20% growth in net profit in the June quarter, with fluoropolymers and fluorochemicals businesses accounting for 58% and 29% of total revenue respectively. The stock currently trades at a price-to-earnings (P/E) multiple of 87, significantly above the industry average of 37.5, reflecting expectations of higher future earnings growth. As per Uniresearch, the highest verified price target stands at ₹4,800, with multiple brokerages maintaining positive ratings despite rich valuations. The stock has turned ₹1 lakh into roughly ₹1.53 lakh in just six months, with shares climbing from around ₹3,122 in early March 2026 to approximately ₹4,786 on 10 September 2026. With a market value of approximately ₹52,220 crore, the fluoropolymer stock ranks 27th out of 101 large-cap and mid-cap NSE stocks on 6-month returns.
As reported by The Economic Times, the company plans to spend ₹2,300 crore on EV-related projects and around ₹800 crore on the chemical business in FY27 as part of a larger ₹6,000 crore capex programme over two years. The expansion will focus on capacity in higher-end fluoropolymers used in semiconductors, data centres, electronics, automotive and green hydrogen applications. The company's existing R32 capacity operates at peak utilisation, with additional capacity expected to be commissioned by the end of September quarter. R134a capacity is due by the end of FY27, and management expects full use of R32 capacity during calendar 2027. The company expects the fluoropolymers business to grow by 17%-20% annually in future, driven by greater contribution from high-value products. On 29 June 2026, the company announced it would expand refrigerant capacity using its entitlements under the Montreal Protocol and the Kigali Amendment.
According to Uniresearch, Q1 FY27 consolidated revenue rose approximately 24% year-on-year to ₹1,588 crore, with EBITDA growing 24% to ₹428 crore at a margin near 27%. Net profit rose approximately 20% to ₹219 crore, more than doubling from ₹100 crore in the March quarter. The chemicals business segment led the performance with revenue rising 23% to ₹1,574 crore and EBITDA growing 29% to ₹458 crore with margins expanding 146 basis points to 29%. Fluoropolymers revenue reached ₹914 crore, up about 15% year-on-year, while refrigerant gas sales climbed 52% year-on-year and 44% quarter-on-quarter to ₹458 crore, led by R32 refrigerant used in air conditioning systems. By the end of FY27, the company expects to offer a broader range of refrigerants across global markets.
According to Uniresearch, the battery materials segment represents the long-term growth story, with LiPF6 electrolyte salt approved by major electrolyte makers with orders secured from FY27. PVDF binder qualification is complete with commercial sales expected in H1 FY27, while LFP cathode material has received initial approvals. Subsidiary GFCL EV raised USD 80 million from a global investor on 27 March 2026, adding to USD 50 million from IFC, taking the total funding round to USD 130 million. Management expects battery materials could post three-digit crore quarterly revenue by Q4 FY27, with meaningful scale from FY28, addressing roughly 70% of the cost of an LFP battery cell. These products could make the fluoropolymer stock a key supplier to India's cell makers, with the earnings opportunity expected to grow over the coming years, although the benefits are likely to emerge with a lag.
As reported by The Economic Times, the company's existing R32 capacity operates at peak utilisation, with additional capacity expected to be commissioned by the end of September quarter. R134a capacity is due by the end of FY27, and management expects full use of R32 capacity during calendar 2027. The company's chemicals business is expected to continue generating healthy growth and cash flows, while the battery materials segment represents a significant expansion into new high-value markets. According to Uniresearch, the company's integration advantage lies in owning a captive fluorspar mine in Morocco and making its own hydrofluoric acid and chloromethanes, giving it better margin control than pure converters. The company's debt-to-equity ratio stands at 0.29, a comfortable level given the substantial capex plans. The integration is the main edge, as the company owns the chain from mineral to polymer, which matters when Chinese prices swing, allowing it to hold margins better than a pure converter.
According to The Economic Times, PL Capital expects the company's earnings per share (EPS) to rise to ₹86.5 in FY28 from ₹52.5 in FY26 and return on equity (ROE) to improve to 10.4% from 7.6% by similar comparison. As per Uniresearch, trailing ROE stands at approximately 7.1%, pulled down by battery business losses and a large capital base that is not yet earning. The brokerage notes that investors are paying today for FY28 and FY29 profits, with the stock's valuation leaving little room for disappointment. Domestic institutions have steadily raised their stake from 11.47% to 13.33% over the year, while foreign ownership remains small at about 4.4%, leaving room for fresh FII buying if earnings momentum holds. The rally in the fluoropolymer stock rests on several assumptions that could break, with investors advised to weigh these before chasing the stock near record levels.
