Navin Fluorine Shares Surge 3% as Q3 Net Profit Soars 122% to Rs 185 Crore
Shares of Navin Fluorine International caught the market’s attention following a significant profit surge during the third quarter. The stock climbed 3% to reach Rs 6,682.4 after the company’s solid financial performance for the December quarter of FY2026.
Exceptional Financial Performance
– Net Profit: The net profit for the quarter rose to Rs 185.4 crore, representing an impressive 122% increase from Rs 83.6 crore during the same period last year.
– Revenue Growth: Revenue from operations also saw a substantial rise of 47.2% year-over-year, totaling Rs 892.3 crore, compared to Rs 606.2 crore in the previous year.
Operating Metrics Show Strong Upswing
– EBITDA: Earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped to Rs 307.4 crore, up from Rs 147.3 crore a year earlier.
– EBITDA Margin: The EBITDA margin expanded to 34.4%, compared to 24.3% in Q3FY25. This improvement reflects enhanced operational efficiency and a favorable product mix.
Revenue Breakdown
– High-Performance Products (HPP): This segment, which includes refrigerants and inorganic fluorides, reported a revenue increase of 35%, reaching Rs 412 crore in Q3FY26.
– Specialty Chemicals: The specialty chemicals division experienced a remarkable 60% revenue growth, totaling Rs 354 crore.
– Contract Development and Manufacturing Organization (CDMO): This arm saw a 61% increase in revenue, amounting to Rs 127 crore as per the company’s regulatory filing.
Strategic Developments in Specialty Chemicals
– HPP Segment: Continued revenue growth is attributed to higher pricing and increased product volumes.
– New Capex: The commissioning of capital expenditure (capex) for AHF is expected in Q4FY26, with dispatches already under way. The pricing environment for Hydrofluorocarbons (HFC) remains favorable.
– Product Pipeline: The specialty chemicals sector is robust, with ongoing scale-up efforts for existing products and plans for new molecule launches.
– Capacity Expansion: The de-bottlenecking of the Multi-Purpose Plant (MPP) at Dahej is on schedule, set to be operational by Q3FY27.
Outlook and Forward Momentum
The CDMO business maintains strong momentum with favorable order visibility. The company is progressing with its strategic goal of balancing its product portfolio between early-stage and commercial-stage molecules. Notable achievements include completing supplies for a major order to a prominent EU customer and progressing discussions for future collaborations.
Navin Fluorine, a leader in specialty fluorochemicals, serves a diverse global clientele across pharmaceuticals, agrochemicals, specialty chemicals, and high-performance materials.
Conclusion
Navin Fluorine’s impressive Q3 results reflect robust growth in the specialty chemicals and CDMO sectors, reinforcing its market position and strategic direction. As the company continues to innovate and expand, its shares remain a focus in the investment landscape.
(Disclaimer: The recommendations, suggestions, views, and opinions expressed in this article are those of the experts and do not reflect the views of The Economic Times.)