Navin Fluorine expands margin YoY, but sequential margin slips again
Revenue growth outpaced costs sharply YoY, while the AHF ramp and CDMO order book supported the quarter.
Filed 05 Aug 2026, 16:13 IST · after market close · Navin Fluorine International Ltd (NAVINFLUOR)
Key takeaways
- Revenue grew +44.07% YoY while operating margin expanded 5.66 percentage points to 34.17%.
- Net profit rose +107.67% YoY, aided by a 0.89-percentage-point lower tax rate, while other income contributed 11.02% of pre-tax profit.
- Sequential momentum continued with revenue up +11.45%, but expenses grew faster at +11.59%, producing a second straight quarterly margin decline.
Price around the results
YoY scale-up drives a doubling of profit
Consolidated revenue grew +44.07% YoY, ahead of expense growth of +32.66%, lifting operating profit by +72.67%. Net profit increased +107.67%, faster than pre-tax profit growth of +105.26%, helped by a 0.89-percentage-point reduction in the tax rate. Other income accounted for 11.02% of pre-tax profit, so reported earnings were not entirely operating-led.
Sequential growth came with a small margin setback
Revenue rose +11.45% QoQ, but expenses grew slightly faster at +11.59%, narrowing operating margin by 0.08 percentage points. Interest expense also increased +10.99%, although the tax rate fell 1.11 percentage points and helped net profit grow +14.43%. Operating margin has now declined for two consecutive quarters after rising from 25.50% in Q4FY25 to 34.47% in Q3FY26.
AHF ramp and CDMO order book remain the operating markers
Management said the AHF facility, which began operations in Q4FY26, continued to ramp up during the quarter, while CDMO momentum was supported by its order book. The company said the Chemours project has received a purchase order and is targeted for completion by the end of Q2FY27. Management also said MPP capacity de-bottlenecking at Dahej is targeted for commissioning in Q3FY27, alongside work on Advanced Materials and a DRDO project for a critical defence material.
Margin remains above the Commodities peer median
Navin Fluorine's 34.17% operating margin was 14.90 percentage points above the 19.27% median for the 53 Commodities peers that had reported the same quarter. The results were filed after market close, so there is no immediate post-results stock reaction to assess. Across the last eight results, the stock rose after five and fell after three, with a median absolute move of 3.53%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,045 cr | ₹938 cr | +11.45% | +44.07% |
| Other income | ₹35 cr | ₹31 cr | +12.07% | +152.45% |
| Expenses | ₹688 cr | ₹617 cr | +11.59% | +32.66% |
| Operating profit | ₹357 cr | ₹321 cr | +11.18% | +72.67% |
| Operating margin (%) | 34.17% | 34.25% | — | — |
| Interest | ₹32 cr | ₹29 cr | +10.99% | +5.83% |
| Depreciation | ₹42 cr | ₹41 cr | +1.12% | +18.27% |
| Profit before tax | ₹318 cr | ₹282 cr | +12.77% | +105.26% |
| Tax | ₹75 cr | ₹70 cr | +7.71% | +97.81% |
| Net profit | ₹243 cr | ₹213 cr | +14.43% | +107.67% |
| EPS (₹) | ₹47.45 | ₹41.49 | +14.36% | +100.80% |
Operating margin of 34.17% compares with a Commodities sector median of 19.27% across 53 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The AHF facility commenced operations in Q4 FY26 and continued to ramp up during the quarter.
- CDMO momentum continued, supported by the order book.
Guidance & outlook
- The HFC pricing environment remains constructive, with increasing interest in contractual offtakes for new capacities.
- The Chemours project is targeted for completion by the end of Q2 FY27.
- MPP capacity de-bottlenecking at Dahej is targeted for commissioning in Q3 FY27.
New orders
- The Chemours project has received a purchase order.
New initiatives
- The company is developing an Advanced Materials vertical focused on Data Centers, Electronics, Defence and Semiconductors.
- The company is undertaking a DRDO project for indigenous process development of a critical defence material.
What to watch
- Whether operating margin holds above 34.17% after the second consecutive quarterly decline.
- Whether revenue growth moves ahead of expense growth after +11.45% and +11.59% QoQ, respectively.
- Whether other income remains near its 11.02% share of pre-tax profit as operating initiatives ramp up.