Navin Fluorine lifts margin as revenue growth outpaces costs
Consolidated net profit rose 81.46% YoY, with a lower tax rate helping the increase while other income contributed only 4.43% of pre-tax profit.
Filed 30 Oct 2026, 14:50 IST · Navin Fluorine International Ltd (NAVINFLUOR)
Key takeaways
- Consolidated revenue grew 57.00% YoY while expenses rose 52.91%, lifting operating margin by 1.76 percentage points to 34.22%.
- Consolidated net profit increased 81.46% YoY, helped by a 1.46-percentage-point fall in the tax rate to 23.42%.
- Navin Fluorine’s 34.22% operating margin was 18.80 percentage points above the 15.42% median for 47 reported Commodities peers.
Price around the results
Volume and realisation drove Q2FY27 growth
Navin Fluorine’s consolidated revenue rose 57.00% YoY and 13.94% QoQ, while operating profit grew faster at 65.52% YoY and 14.11% QoQ. Management said HPP growth came from higher volumes and improved realisations, while HFC pricing remained firm with a sequential increase in realisation. The company also said its HFO supply contract with Solstice Advanced Materials US, Inc. was extended by four years beyond the original seven-year term.
Cost control widened the annual margin advantage
Expenses grew 52.91% YoY against 57.00% revenue growth, expanding operating margin by 1.76 percentage points; sequentially, expenses and revenue grew almost in line at 13.85% and 13.94%, leaving margin up 0.05 percentage points. Lower interest expense, down 10.59% QoQ, also supported pre-tax profit. Other income was 4.43% of pre-tax profit, so the profit increase was not chiefly driven by non-operating income, while the lower tax rate added to net profit growth.
Margin remains well above peers after a multi-quarter rise
Operating margin has risen from 28.51% in Q1FY26 to 34.22% in Q2FY27, though the pace has levelled after 34.47% in Q3FY26, 34.25% in Q4FY26 and 34.17% in Q1FY27. The current margin was 18.80 percentage points above the 15.42% median among 47 Commodities companies that had reported the same quarter. This keeps Navin Fluorine near the upper end of the reported peer set, at rank 45 from the bottom.
Management points to capacity and pipeline support
Management said Specialty Chemicals had strong order visibility in H2 and beyond, while CDMO momentum in FY27 was supported by positive developments on pipeline molecules and a qualification purchase order from a European CDMO major’s supply chain. The company said MPP capacity at Dahej was de-bottlenecked and commissioned in September 26. Management also said the Chemours project involves Rs 120 cr of capex, and that Rs 125 cr of Phase II cGMP4 capex was on track for operationalisation by the end of Q4 FY27.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,191 cr | ₹1,045 cr | +13.94% | +57.00% |
| Other income | ₹16 cr | ₹35 cr | -55.57% | -14.39% |
| Expenses | ₹783 cr | ₹688 cr | +13.85% | +52.91% |
| Operating profit | ₹407 cr | ₹357 cr | +14.11% | +65.52% |
| Operating margin (%) | 34.22% | 34.17% | — | — |
| Interest | ₹29 cr | ₹32 cr | -10.59% | -5.21% |
| Depreciation | ₹43 cr | ₹42 cr | +2.62% | +16.92% |
| Profit before tax | ₹352 cr | ₹318 cr | +10.43% | +78.00% |
| Tax | ₹82 cr | ₹75 cr | +9.69% | +67.56% |
| Net profit | ₹269 cr | ₹243 cr | +10.65% | +81.46% |
| EPS (₹) | ₹52.48 | ₹47.45 | +10.60% | +80.59% |
Operating margin of 34.22% compares with a Commodities sector median of 15.42% across 47 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- HPP revenue growth was led by higher volume and improved realisations.
- Pricing for HFC remained firm, with a quarter-on-quarter increase in realisation.
Guidance & outlook
- The company sees increasing visibility for upcoming HFC capacities.
- Specialty Chemicals has strong order visibility in H2 and beyond.
- CDMO momentum in FY27 is supported by positive developments on pipeline molecules.
Expansion
- MPP capacity at Dahej was de-bottlenecked and commissioned in September 26.
- The Chemours project involves Rs. 120 Crs of capex for initial commercial capacity for an innovative liquid cooling product.
- Phase II cGMP4 capex of Rs. 125 Crs is planned to be operational by the end of Q4 FY27.
- The company plans Rs. 90 Crs of capex for adoption capacities to commercialise its product pipeline.
New orders
- The HFO supply contract with Solstice Advanced Materials US, Inc. was extended by four years beyond the original seven-year term.
- The CDMO received a qualification purchase order while expanding its footprint in a European CDMO major's supply chain.
New initiatives
- The company is developing an Advanced Materials vertical focused on data centers, electronics, defence and semiconductors.
- The company is undertaking a DRDO TDF project for indigenous process development of a critical defence material.
What to watch
- Whether consolidated operating margin holds above 34.22% after the 1.76-percentage-point YoY expansion.
- Whether expenses continue to grow more slowly than revenue after the 52.91% versus 57.00% YoY increase in Q2FY27.
- Progress on management’s stated Rs 120 cr Chemours project and Rs 125 cr Phase II cGMP4 capex.