Key Financial Figures (Q2 FY27 vs Q2 FY26)

  • Revenue from Operations: ₹230 crore (vs ₹169 crore), growth of 37% YoY
  • Sequential Revenue Growth: 23% from Q1 FY27 (₹187 crore)
  • H1 FY27 Revenue: ₹418 crore (vs ₹345 crore), growth of 21% YoY
  • Gross Profit: ₹75 crore (vs ₹66 crore)
  • Gross Margin: 32.5% (vs 39% in Q2 FY26 and 37% in Q1 FY27)
  • Profit After Tax (PAT): ₹19 crore (vs ₹17 crore), growth of 11% YoY
  • H1 FY27 PAT: ₹36 crore (in line with H1 FY26)

Key Financial Ratios (H1 FY27)

  • Adjusted Return on Equity (ROE): 18%
  • Adjusted Return on Capital Employed (ROCE): 19%
  • Fixed Asset Turnover Ratio: 3.5x (annualized)

Operational Highlights

  • Achieved highest ever quarterly revenue of ₹230 crore
  • Increased solar grade DHF manufacturing capacity from 20,000 MTPA to 25,000 MTPA through debottlenecking (25% capacity increase)
  • Added new products to fluorinated inorganic fluorides portfolio
  • AHF capacity utilization in H1 FY27 was approximately 78%
  • Solar grade DHF capacity utilization reached 90-95% in Q2
  • Bulk procurement of fluorspar led to inventory covering 6-7 months (vs normal 3-4 months)
  • Working capital days increased from 91 to 104 days primarily due to receivables (72 days from 57 days)

Capital Raising & Financial Position

  • Successfully completed preferential issue of approximately ₹100 crore in September 2026
  • Includes approximately ₹61 crore investment from promoter Anupam Rasayan
  • Combined with ₹250 crore QIP completed in June 2026, total fund raise of ₹350 crore in H1 FY27
  • Significant strengthening of capital base and financial flexibility

HFC-32 Refrigerant Gas Project Update

  • Project 90% complete with ₹360 crore already committed (90% of total project cost)
  • Target commissioning in Q3 FY27 (December 2026/January 2027)
  • Expected utilization: 20% in Q4 FY27, 85-90% in FY28
  • Expected volume: 2,000-3,000 tons in FY27
  • Contractual pricing: ~$7/kg (formula-based)
  • Sales mix: 60-65% contracted, 35-40% spot
  • MDC sourcing secured domestically and internationally with no significant challenges

Management Guidance

  • FY27 Revenue Growth: Revised upward to 35-40% (from previous 30% guidance)
  • FY28 Revenue Growth: Expected 55-60% growth over FY27
  • EBITDA Margin Outlook:
  • Q3 FY27: 15-17%
  • H2 FY27: ~18%
  • Full Year FY27: ~16%
  • FY28: 24-26%
  • Raw Material Outlook: Sulphur prices showing signs of moderation after significant increase

Future Expansion Plans

  • Immediate Priority: Expand AHF capacity from 30,000 to 45,000 MTPA
  • Second Priority: Double solar grade DHF capacity from 25,000 to 50,000 MTPA
  • Medium Term: Entry into electronic chemicals, fluoropolymers, and next-generation gases
  • FY28 Capex Guidance: Minimum ₹250 crore for AHF and solar grade expansion
  • R&D Focus: 10 products under development in refrigerants, fluoropolymers, fluoromonomers, and electronic chemicals

Market Dynamics

  • Solar grade DHF demand robust with Indian solar cell manufacturing capacity expected to grow from 30GW to 100GW in 3 years
  • Solar grade DHF demand expected to grow from 25,000 MT to 100,000 MT
  • No significant competition anticipated in solar grade due to substantial capex requirements and technology barriers
  • Chinese refrigerant prices elevated, Indian prices lower, limiting import benefits
  • US market advantage due to anti-dumping duties on Chinese manufacturers

Geopolitical Impact

  • Precautionary bulk procurement of fluorspar due to Middle East geopolitical risks
  • Increased lead times for fluorspar procurement due to container availability challenges
  • Currently favoring Indian manufacturers in export markets

Customer & Contract Updates

  • MOU for 5,000 metric tons of R-32 expected to convert to contract within 1-1.5 months
  • Customer qualification process for new products underway with 2-3 month evaluation period
  • Trade market sales for R-32 to begin from December 2026, OEM sales from January 2027

Cost Structure Analysis

  • Sulphur price increased 5x from ₹25/kg (Nov 2025) to ₹120/kg (Sep 2026)
  • Cost pass-through lag of approximately 45 days in solar grade contracts
  • Fluorspar contributes 70% of total raw material value
  • Other expense increase attributed to higher freight costs, bank charges, and foreign exchange impact