The sharp rally in the stock of Gujarat Fluorochemicals continued on Thursday, a day after the Noida-based company revealed strong earnings in the first quarter of the financial year ending March 2027. MetricQ1 AmountGrowth Revenue₹1,588 crore+24%EBITDA₹428 crore+24.4%Operating Margin26.9%+10 bpsProfit After Tax₹219 crore+20%In a conference call with the analysts following the earnings report, the management of the $5.5 billion company, which is one of the largest producers of chloromethane, refrigerants and polytetrafluoroethylene, projected a strong year ahead.
Segmental Performance & Volume GuidanceFluoropolymers: Growth during the quarter was anchored by value-added products alongside robust volumes across core product lines. Management expects 15%–20% volume growth in this segment going forward. Fluorochemicals: Existing R32 capacity operated at peak utilisation during Q1 FY27.
Management highlighted strong market demand for R134a, which reinforces confidence in planned capacity expansions. The revenue from the chemicals segment was up 16.6% in Q1 at ₹1,610 crore. Strategic Growth Drivers & New ApplicationsNear-Term vs. Medium-Term: Fluoropolymers and Fluorochemicals will remain the primary earnings drivers in the near term, while Advanced Battery Materials are slated to become the core growth engine over the medium term.
The revenue from electric vehicles vertical surged to ₹29 crore, nearly double from the ₹15 crore a year earlier. New-Age Opportunities: Emerging demand across semiconductors, data centers, green hydrogen, and advanced industrial applications is opening up strong incremental growth avenues.
Battery Chemicals Target: Management is targeting triple-digit revenue by Q4 FY27. Brokerage Stance & Valuation SummaryBrokerageRating / Stance Key HighlightsTarget Price / Multiple360 ONEBullish: Upgraded valuation multiple by ~10% to reflect strengthening growth visibility across core and new-age segments.
TP: ₹5,370 Target Multiple: 39x Prabhudas Lilladher Cautious / Neutral: Expects Fluoropolymers to remain the chief top-line driver, noting that Battery Chemicals may take longer to deliver a material top-line impact. Target Multiple: 52x FY28E EPS Read more : ICICI Bank threatens to dislodge HDFC Bank as India’s most valuable private bank