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Informist, Friday, Mar. 27, 2026

 

AHMEDABAD – Crisil Ratings has reaffirmed the "Crisil AA+" and "Crisil A1+" ratings, respectively, on the long-term and short-term bank loan facilities of Gujarat Fluorochemicals Ltd., the Vadodara-headquartered company said in its filing with the stock exchanges Friday. The outlook on both loan facilities, which collectively amount to INR 30 billion, remains "stable".

 

The rating agency reaffirmed the ratings citing the company's sustained healthy operational performance and strong financial risk profile. It also withdrew its rating on the company's non-convertible debentures worth INR 500 million following their redemption.

 

Crisil said the rating reaffirmation factors in Gujarat Fluorochemicals' healthy operating performance as reflected in a revenue of INR 36.28 billion for the first nine months of the financial year 2025-26 (Apr-Mar), up from INR 35.12 billion a year earlier. This, it said, was supported by "strong growth" in the fluoropolymers segment, while other segments remained subdued. The company's operating margin has improved to 27%, from 23%, though it moderated sequentially in the December quarter owing to weak demand after the US imposed tariffs on goods imported from India, the holiday season in key markets, and production quota restrictions affecting volumes of the R-22 refrigerant.

 

The agency expects the company's operating performance to recover over the next few quarters. Gujarat Fluorochemicals has invested around INR 17 billion in its battery chemicals segment, part of a planned capital expenditure of INR 60 billion over the next 2-3 years. However, the segment is yet to contribute meaningfully to revenue or profitability.

 

Over the medium term, products such as lithium hexafluorophosphate salts, polyvinylidene fluoride binders, and electrolytes are expected to drive growth, supported by demand from electric vehicles and the hydrogen and semiconductor sectors. The exit of some legacy players and commercialisation of advanced products from early FY27 are also likely to support growth, the rating agency said.

 

Crisil sees the financial profile of Gujarat Fluorochemicals remaining strong, with debt of about INR 15.32 billion at the end of Dec. 31 and interest coverage seen above eight times.

 

For the December quarter, on a consolidated basis, Gujarat Fluorochemicals had reported a net profit of INR 1.03 billion on a revenue from operations of INR 11.36 billion. At 1136 IST, its shares were down nearly 3% at INR 3,167.80 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Sunil Raghu

Edited by Rajeev Pai

 

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