Navin Fluorine International delivered impressive Q1FY27 results with revenue growing 44% year-on-year to ₹1,045 crore and EBITDA margin of 34%, significantly improved from 23% in FY25, as reported by Bloomberg. The high performance products (HPP) segment contributed almost 52% of Q1FY27 revenues and grew 33%, aided by higher volumes and better realizations. The specialty chemicals business grew 48%, with 31% of Q1FY27 revenue coming from this segment. The company's FY26 revenue grew 41% year-on-year to ₹3,314 crore, demonstrating sustained momentum across all business segments.
Navin Fluorine International faces contrasting analyst opinions following recent brokerage reports. While Prabhudas Lilladher maintains an 'Accumulate' rating with target price of Rs 8,812, Kotak Institutional Equities has issued a 'Sell' rating with target price of Rs 5,250, implying a downside potential of over 36% from Thursday's closing price. According to CNBC TV18, this represents one of the lowest street targets for the stock. Despite Kotak's bearish call, 23 of 29 analysts with coverage on the stock gave it a 'Buy' rating, while four gave 'Sell' recommendations and two said 'Hold'. Prabhudas Lilladher's latest report emphasizes the company's 'strong multi-year growth trajectory' supported by robust demand across businesses and multiple growth levers.
The company is adding hydrofluorocarbon (HFC) capacity of up to 15,000 tonnes of R32, to be commissioned in Q3FY27, with management indicating peak annual revenue potential of ₹600-825 crore from the additional R32 capacity. According to Prabhudas Lilladher, R32 is expected to contribute ~20–25% of revenue by FY28, with ~30–40% of the expanded capacity already contracted. The company's management has retained its guidance for 20%-25% revenue compound annual growth rate (CAGR) between FY25-2030 and expects revenue/EBITDA/PAT to register a CAGR of 22%/24%/29% over FY26–28E respectively. PL Capital estimates Navin's overall revenues at ₹4,219 crore and ₹4,933 crore in FY27 and FY28, respectively.
The CDMO business contributed ₹180 crore in Q1FY27, increasing by 82% year-on-year, with the management confident of CDMO revenue reaching $100 million in FY27, supported by deeper relationships with pharmaceutical customers. Nuvama Research expects CDMO revenues to rise by 74% in FY27. The company plans to invest ₹700 crore in FY27, with annual capex expected at ₹700-1,000 crore over the next 2-3 years across R32, CDMO and Advanced Materials. The company is also investing ₹90 crore in adoption capacity of advanced materials, currently included in HPP.
Shares of Navin Fluorine International have gained 38% so far in 2026 and nearly 65% over the last 12 months, as reported by Bloomberg. The stock currently trades at 48 times its FY27 estimated earnings, leaving less room for execution misses. The company's 'robust demand across businesses and multiple growth levers' continue to support its strong positioning for multi-year growth, with the management aiming for 25% revenue CAGR through FY30. The stock is currently trading at ₹8,196.15 with Prabhudas Lilladher valuing it at 41x FY28E EPS.
