Financial Performance

  • Revenue from operations: INR187 crores in Q1 FY27, up 6.3% YoY from INR176 crores in Q1 FY26
  • Sequential revenue decline: ~3% from previous quarter
  • Operating EBITDA: INR28.6 crores with EBITDA margin of 15.3%
  • Profit After Tax (PAT): INR16.8 crores compared to INR19.4 crores in Q1 FY26
  • Margin pressure attributed to elevated sulphur prices (increased from INR30 to INR105), higher power and fuel costs due to geopolitical situation in West Asia, and one-time deferred tax adjustment
  • Capacity utilization: HF plant 73%, sulfuric acid plant 85-88%, specialty fluorides 50%
  • Effective tax rate expected to normalize to historical levels

Capital Structure & Fundraising

  • Successfully completed INR250 crores Qualified Institutional Placement (QIP)
  • Board approved preferential issue of approximately INR100 crores (subject to approvals)
  • INR61 crores investment by promoters Anupam Rasayan planned
  • Company became net debt-free with strengthened balance sheet
  • Committed INR315 crores against HFC-32 project cost of INR395 crores

Strategic Initiatives & Growth Projects

HFC-32 Refrigerant Gas Project:

  • 20,000 metric tons per annum capacity
  • Execution progressing well, on schedule for commissioning by end of Q3 FY27 (November-December 2026)
  • 65% of capacity covered by long-term commercial agreements
  • Expected margin: ~30% for the project, ~25% for overall business
  • Volume guidance: 65-70% utilization in Q4 FY27, 80-85% in FY28
  • Expected revenue: INR900-1,000 crores from R-32

Solar Grade DHF Business:

  • Both phases commissioned, focus shifted to production ramp-up
  • Long-term customer contracts extending through FY2029
  • 80-85% of capacity contracted
  • India's first and only domestic supplier of solar grade DHF
  • Planning to almost double capacity (INR30-40 crores capex)

Future Expansion Plans:

  • AHF expansion: ~INR120 crores capex (20,000-30,000 tons capacity)
  • Electronic grade chemicals: ~INR150 crores capex for semiconductor applications
  • Evaluating technology tie-ups for electronic grade products
  • HFOs and high-performing fluoropolymers planned for FY28-29
  • Total planned capex: INR1,500-1,700 crores over next 4 years

Operational Updates

  • Welcome Mr. Yogesh Mittal as President - Technical and Operations with over three decades of experience
  • Board approved seeking NSE listing subject to regulatory approvals
  • R&D investment: INR7-8 crores capex in last 1.5 years, INR5-6 crores revenue expense
  • R&D focus: hydrofluoroolefins, fluoropolymers, electronic chemicals, inorganic fluorides
  • Domestic/export revenue mix: Currently 90%/10%, expected to become 50%/50% post R-32 commissioning

Raw Materials & Supply Chain

  • Sulphur availability not an issue despite price volatility
  • Cost pass-through mechanism with 30-45 day lag
  • Fluorspar sourcing from South Africa, Vietnam, Thailand - logistic challenges but no pricing issues
  • No significant Chinese import competition for AHF due to regulatory complexity and logistics

Market & Demand Environment

  • Indian HF demand: 30,000-35,000 metric tons per annum
  • Solar capacity expansion: From 35GW to 210GW planned by FY29
  • Solar grade DHF demand expected to grow from 30KT to 210KT
  • No anticipated changes in US anti-dumping duties on Chinese R-32

Management Guidance

  • FY27 revenue growth target: 30% over FY26
  • FY28 revenue growth target: 60% over FY27
  • EBITDA margin outlook: 16-19% in near term, improving to 21-22% for full FY27, 25% in FY28
  • R-32 project expected to contribute from Q4 FY27

Contract Details

  • R-32 contracts: 65% of capacity covered (5-7 year terms, 75% for exports)
  • Contracts include take-or-pay clauses and cost pass-through mechanisms
  • Solar grade DHF: 80-85% contracted with volume commitments
  • Pricing varies based on raw material costs with pass-through mechanism

Customer Base

Major customers include Jindal, Piramal, Cohizon, Tata, Adani, Premier Energies across segments:

  • Solar grade segment (one-third of capacity)
  • Pharma, agro, and refrigerant gas segment (one-third of capacity)
  • Surface treatment, steel, glass segments, and captive production (remaining one-third)