Navin Fluorine Sales Jump 57% to 1,190.7 Crore Rupees in Second Quarter
Key Facts
Navin Fluorine’s consolidated sales were about 1,190.7 crore rupees in the second quarter of fiscal 2027, up 57% year on year and 14% from the previous quarter, according to a Reuters report published via Investing.com. Operating EBITDA rose to 407.5 crore rupees, up 66% year on year. The operating EBITDA margin widened to 34.2%, an increase of 176 basis points from the corresponding quarter of fiscal 2026. Operating profit before tax also rose 87% to 336 crore rupees. Sales and profit growth showed that improvement broadened across the company’s operations, with the pace of increase varying among its segments.
The largest segment revenue came from high-performance products (HPP), where sales rose 49% year on year to 604 crore rupees. The company attributed the increase to higher sales volumes and improved realized prices. Specialty chemicals grew faster, with revenue up 58% to 348 crore rupees. International markets accounted for 67% of the segment’s revenue during the quarter. Contract development and manufacturing (CDMO) recorded the fastest growth among the three segments, with revenue jumping 78% to 239 crore rupees.
Revenue growth was underpinned by segment performance, while profitability grew faster than sales during the quarter. The chief financial officer said pricing measures and foreign-exchange tailwinds largely offset the impact of sourcing costs. He added that operating leverage and operational efficiency supported EBITDA. On the earnings call, he cited higher costs for raw materials including sulfur, gas and fluorspar. He said the 34% EBITDA margin "cannot result from pricing alone" and requires sustained efficiency and operational improvements. These factors put margin performance in the context of a mix of pricing, operational gains and input cost pressures.
In the first half of fiscal 2027, consolidated sales reached 2,235.8 crore rupees, up 51% year on year. Operating EBITDA came to 764.5 crore rupees, up 69%. The operating EBITDA margin was 34.2%, an increase of 367 basis points from the corresponding period. Net profit after tax also reached 513 crore rupees, up 93% year on year, according to the earnings-call transcript. The chairman said first-half earnings per share were 100 rupees. On October 30, 2026, the board declared an interim dividend of 8 rupees per share, with a face value of two rupees.
On future revenue, the company extended its HFO supply contract with Solstice Advanced Materials US by four years. The extension adds about 180 million dollars to potential revenue, taking the contract’s approximate total value to 590 million dollars over 11 years. The chief financial officer said the company was close to its fiscal 2027 target of seeing a CDMO order book of 100 million dollars. In specialty chemicals, the managing director said the company saw strong demand and order visibility for the second half of fiscal 2027 and beyond. He also said the company was working on five new molecules and aimed to reach a 350 crore rupee revenue run rate in the segment.
In September 2026, the company commissioned a debottlenecking expansion at its multipurpose plant in Dahej. It aims to complete the Chemours project by the end of the third quarter of fiscal 2027, with purchase orders for delivery in the fourth quarter. Management said the fiscal 2027 EBITDA margin was expected to remain near the first-half level of 34.2%, while maintaining its long-term target at 30%. The chief financial officer also set an annual capital expenditure range of 700 to 1,000 crore rupees and said the company expected to spend 700 crore rupees in fiscal 2027. Project timelines, purchase orders, spending and margin expectations are the key milestones management identified for coming periods.