Navin Fluorine International Limited Q3 FY26 Earnings Call Summary

Summary

Navin Fluorine International Limited - Q3 FY26 Earnings Call Summary Monday, February 09, 2026, 4:00 PM IST

Event Participants

Executives 3 Anish Ganatra (CFO), Nitin Kulkarni (MD), Vishad Mafatlal (Chairman)

Analysts 8 Abhijit (Kotak Securities), Archit Joshi (Nuvama), Arun (Avendus Spark), Jason (IDBI Capital), Nirav (Anvil Wealth), Nitesh (Anand Rathi), Sajan Kapoor (Antifragile Thinking), Sanjesh Jain (ICICI Securities), Surya (PhillipCapital), Vivek (Morgan Stanley)

Financials & KPIs

Geographic & Segment Commentary

• Specialty Chemicals: Achieved record quarterly revenue driven by the Nectar project reaching 50% utilization and the launch of one to two new molecules per quarter. The segment is shifting from a transactional model to a strategic technology partnership with global agchem majors.
• HPP (High Performance Products): Performance remains robust with R-32 capacity at 100% utilization. Recent commissioning of the AHF (Anhydrous Hydrogen Fluoride) “mother plant” provides a foundation for high-value downstream fluorinated chemistries.
• CDMO (Contract Development and Manufacturing): Strong momentum following the commissioning of the cGMP-4 Phase-1 facility for a European major. The segment maintains a balanced 50-50 split between early-stage and late-stage/commercial molecules, positioning it to hit the $100 million revenue aspiration.

Company-Specific & Strategic Commentary

• Wave-1 & Wave-2 Projects: Successfully concluded Wave-1 (AHF and cGMP-4). Wave-2 projects (Chemours, MPP debottlenecking, and R-32 expansion) remain on track for FY27 completions.
• Advanced Materials & Semiconductors: Evaluating entry into the electronic chemical value chain (including BF-3 and high-purity gases) to capitalize on India’s Semiconductor Mission 2.0.
• Vertical Integration: The new AHF capacity is strategic, intended to reduce external dependence while fueling niche, high-realization downstream applications rather than commodity trade.
• Manufacturing Excellence: Focus on the “lift, shift, adapt, embed” model to drive process improvements and yield optimization, which contributed to the current quarter’s 34.5% EBITDA margin.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Segmental Growth & Utilization

• Question: What is driving the sharp sequential growth in the subsidiary (NFASL)? (Sanjesh Jain)
• Answer: Growth is primarily from the Nectar ramp-up and the specialty pipeline. MPP-1 is at par, MPP-2 is at 70-80%, and Nectar is at 50% utilization (Anish Ganatra).

Margin Sustainability

• Question: How sustainable are the 34.5% margins? (Arun)
• Answer: Current margins reflect a beneficial product mix and operating leverage. On an annualized basis, investors should model 30% (+/- 200 bps) as different campaigns have varied margin profiles (Anish Ganatra).

Semiconductor Opportunity

• Question: Why is the company downplaying solar in favor of semiconductor grade? (Sanjesh Jain)
• Answer: The company is building capacity to access electronic-grade markets. Solar is not excluded, but the focus is on higher-purity, niche-value gases like BF-3 (Anish Ganatra).

Refrigerant Mix

• Question: Has the R-32 mix changed, and are export realizations better? (Nitesh/Abhijit)
• Answer: Export realizations for R-32 are currently superior to domestic. New capacity (15,000 MTPA) is being prepared for global market placement (Anish Ganatra).

Key Takeaway

Navin Fluorine delivered a record-breaking performance in Q3 FY26, with revenue growing 47% YoY to ₹892 crores and EBITDA margins expanding significantly to 34.5%. The quarter was marked by the successful completion of “Wave-1” CAPEX projects, including the AHF mother plant and cGMP-4 facility, which have already begun contributing to commercial supplies. The Specialty Chemicals vertical achieved its highest-ever quarterly revenue, signaling a successful shift toward strategic technology partnerships with global innovators. Management remains focused on “Wave-2” expansions, including the Chemours liquid cooling project and R-32 capacity additions, both slated for FY27. While raw material inflation in Fluorspar and Sulfur remains a watch point, the company is well-positioned to leverage the Indian Semiconductor Mission 2.0 and global AI-driven data center growth. Navin Fluorine continues to transition into a high-value fluorinated solutions provider with a sustainable long-term annual margin profile of approximately 30%.