Navin Fluorine profit more than doubled, but margin slipped sequentially
Revenue growth outpaced costs sharply year on year, while a small sequential margin decline and higher other income shaped the quarter.
Filed 29 Apr 2026, 16:43 IST · after market close · Navin Fluorine International Ltd (NAVINFLUOR)
Key takeaways
- Consolidated net profit rose 123.90% year on year as revenue grew 33.78% while expenses increased 18.06%.
- Operating margin expanded 8.75 percentage points year on year to 34.25%, though it eased 0.22 percentage points sequentially as costs grew faster than revenue.
- Other income contributed 11.09% of pre-tax profit, making reported earnings partly dependent on non-operating income.
Price around the results
Operating profit drove the year-on-year earnings jump
Consolidated revenue increased 33.78% year on year, while expenses rose 18.06%, lifting operating profit 79.70%. Net profit grew faster at 123.90%, helped by other income rising 165.11% and a 0.55 percentage-point reduction in the tax rate. Sequentially, revenue grew 5.08% and operating profit 4.42%, but net profit rose 14.68% as pre-tax profit increased 18.48%.
Margin improvement paused after five quarters of expansion
Operating margin widened 8.75 percentage points year on year because revenue growth substantially exceeded expense growth. It narrowed 0.22 percentage points sequentially because expenses grew 5.43%, faster than revenue at 5.08%; the tax rate also rose 2.49 percentage points. Other income accounted for 11.09% of pre-tax profit, so the quality of reported profit was not entirely operating-led.
Navin remained well above the reported peer median
Navin Fluorine's operating margin was 15.48 percentage points above the 18.77% median for 51 Commodities peers that had reported the same quarter. The 34.25% margin followed five sequential quarters of expansion from 24.30% in Q3FY25 to 34.47% in Q3FY26, making the latest decline a modest pause rather than a reversal of the broader trend.
New capacity and commercial supplies were key management markers
Management said AHF capex had been commissioned and commercial supply had started, while the company said the European CDMO MSA had completed validation and begun commercial supplies from cGMP4. Management said the Chemours project was on track for completion in Q1FY27 and listed additional HFC capacity equivalent to up to 15,000 MTPA of R32. The presentation also said the HFC project had peak revenue potential of about Rs 600-825 cr per annum and that Specialty Chemicals had positive outlook supported by strong order visibility.
The initial market move was smaller than Navin's usual results reaction
After the results were filed after market close, the stock's next-session return was +0.92%, with a +4.31% opening gap and volume at 12.01 times the reference level. Its five-day return was +4.19%, but the immediate move was below the 3.53% median absolute move across the last eight results reactions. The reaction data overlaps with a corporate action, which limits how cleanly it can be attributed to the results.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹938 cr | ₹892 cr | +5.08% | +33.78% |
| Other income | ₹31 cr | ₹-5 cr | — | +165.11% |
| Expenses | ₹617 cr | ₹585 cr | +5.43% | +18.06% |
| Operating profit | ₹321 cr | ₹308 cr | +4.42% | +79.70% |
| Operating margin (%) | 34.25% | 34.47% | — | — |
| Interest | ₹29 cr | ₹28 cr | +2.41% | +2.41% |
| Depreciation | ₹41 cr | ₹36 cr | +13.99% | +16.90% |
| Profit before tax | ₹282 cr | ₹238 cr | +18.48% | +122.28% |
| Tax | ₹70 cr | ₹53 cr | +31.82% | +117.48% |
| Net profit | ₹213 cr | ₹185 cr | +14.68% | +123.90% |
| EPS (₹) | ₹41.49 | ₹36.18 | +14.68% | +116.66% |
Operating margin of 34.25% compares with a Commodities sector median of 18.77% across 51 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.92% | +1.67% |
| Next session | +0.56% | — |
| 5 sessions | +4.19% | +4.19% |
| 15 sessions | +5.42% | — |
| 30 sessions | +7.82% | — |
Volume on the results session was 12.01× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- AHF capex was commissioned and commercial supply started.
- The European CDMO MSA completed validation and started commercial supplies from cGMP4.
Guidance & outlook
- The HFC project has peak revenue potential of about Rs. 600-825 Crs per annum.
- Specialty Chemicals has a positive outlook supported by strong order visibility.
- The European CDMO MSA has a strong outlook into FY27 and beyond.
Expansion
- The company lists additional HFC capacity equivalent to up to 15,000 MTPA of R32.
- The Chemours project is on track for completion in Q1FY27.
What to watch
- Whether operating margin holds above 34.25% after the 0.22 percentage-point sequential decline.
- Whether expenses continue to grow faster than revenue, after the sequential gap of 5.43% versus 5.08%.
- Whether the company reports completion of the Chemours project in Q1FY27 and progress on the additional HFC capacity equivalent to 15,000 MTPA of R32.