Summary
Stallion India Fluorochemicals Limited - Q3 FY 2026 Earnings Call Summary Tuesday, February 03, 2026, 04:00 PM
Event Participants
Executives 2 Govind Rao (Company Secretary), Shazad Rustomji (Managing Director & CEO)
Analysts 8 Aditya Sen (FinDoc), Arindum Dutta (Individual), Ashish Soni (Individual), CK Nathani (Individual), Jay Mehta (Elios), Parth (Investor Relations), Ramesh Shah (Individual), Shashank Jha (Individual)
Financials & KPIs (9M FY26)
| Metric | Reported | Commentary |
|---|---|---|
| Total Revenue | ₹321.18 crores | +41.7% YoY; Driven by strong operating momentum and expansion in refrigerants and specialty gases. |
| EBITDA | ₹43.69 crores | +48.6% YoY; Supported by better product mix and higher contribution from the aftermarket. |
| PAT | ₹32.90 crores | +72.8% YoY; Structurally stronger profitability due to operating leverage and value-added gases. |
| EPS | ₹4.15 | +33.8% YoY; Calculated on a nine-month basis compared to ₹3.10 in the previous period. |
| Revenue (Q3 FY26) | ₹104.87 crores | +23.2% YoY; Growth maintained despite quarterly volatility. |
| PAT (Q3 FY26) | ₹11.12 crores | Consistent performance reflecting the execution of an integrated business model. |
Geographic & Segment Commentary
- Refrigerants & Blends: The segment is pivoting from HFCs (priced at $5-7) to HFOs ($25-30) as market dynamics shift toward higher-value products. The upcoming Bhilwara facility will produce captive R-32, enabling a move into massive export markets and large-scale blending operations.
- Helium & Specialty Gases: Strategic focus on high-purity applications for semiconductor, space, and defense sectors. A technology tie-up with SYS Advanced (Portugal) and sourcing via Sharjah Oxygen (Qatar) ensures a globally connected supply chain.
- South India (Mambattu): A 5-acre facility in Andhra Pradesh is being re-engineered for higher volumes and integrated blending/rebulking. It will now include semiconductor-grade helium and hydrocarbon facilities to capture the high-growth southern market.
Company-Specific & Strategic Commentary
- Backward Integration (Bhilwara): Expanding the R-32 plant from 5,000 MT to 10,000 MT per annum for economies of scale, with commissioning expected by August 2026.
- Helium Logistics: Utilizing regional hubs (Khalapur for West, Mambattu for South, Ghilot for North) to stay within the critical 500km radius for profitable liquid helium distribution.
- Strategic Partnerships: Secured technical collaboration with Sharjah Oxygen for liquid helium supply originating from Qatar and technology for recovery/liquefaction systems from SYS Advanced.
- Project Financing: The company maintains a debt-free status; however, it has MoUs with the Government of Rajasthan for subsidized land and pre-tied project finance.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue | ₹430 crores (FY26) | Confident of achieving target based on 9M run rate. |
| PAT | ₹40 crores (FY26) | Expecting to meet projection; structurally stronger margins. |
| Revenue Growth | 30-35% CAGR | Targeted over the next three years (FY26-FY29) through expansion and new products. |
| PAT Margin | 16-24% (New Projects) | New manufacturing/helium business expected to lift current PAT margins from ~10% up to 24%. |
| Long-term (FY27) | ₹675 crores Revenue | Based on full business growth and 6 months of R-32 production. |
Risks & Constraints
| Risk | Context |
|---|---|
| Project Execution Delays | Re-engineering of Khalapur and Mambattu plants has moved commissioning to Q4 FY26 due to design scale-ups and overseas equipment arrival. |
| Market Volatility | High price volatility led to the cancellation of a planned preferential issue, forcing the MD to sell personal stake for interim project funding. |
| Logistics of Liquid Helium | High profitability is limited to a 500km radius from supply points, necessitating multiple regional facilities to gain significant market share. |
Q&A Highlights
Fundraising & Share Sales
- Question: Why did the MD sell shares recently, and where is the money going? (Shashank Jha)
- Answer: Volatility prevented a viable preferential issue. Sold 2% stake to provide interest-free funds to the company to kickstart the R-32 plant without delay. These will be converted back via a rights issue (Shazad Rustomji).
Plant Timeline & Delays
- Question: Why have the Mambattu and Khalapur plants been delayed from January to March/April? (Shashank Jha)
- Answer: Re-engineered original designs to double capacity and include helium/hydrocarbon facilities. Khalapur was upgraded from a 200 bar to a 300 bar system (Shazad Rustomji).
R-32 Production & Rights Issue
- Question: What is the total fundraise amount and the R-32 capacity? (Arindum Dutta)
- Answer: Raising ₹364 crores via rights issue for a 10,000 MT R-32 plant (up from 5,000 MT). Expect ₹275 crores revenue and ₹66 crores PAT from the first 6 months of production in FY27 (Shazad Rustomji).
Helium Strategy
- Question: What is the revenue potential for helium and specialty gases? (Jay Mehta)
- Answer: Long-term target of ₹200 crores within five years. Profitability is centered on liquid helium, requiring regional plants to service customers within 500km (Shazad Rustomji).
Key Takeaway
Stallion India delivered a robust nine-month performance with revenue growth of 41.7% and PAT surging 72.8% to ₹32.90 crores. The company is transitioning from a trading/blending model to a high-margin integrated manufacturer, doubling its R-32 capacity to 10,000 MT and expanding its helium presence via strategic global tie-ups. While project timelines for Mambattu and Khalapur have shifted slightly to Q4 FY26 due to strategic re-engineering and pressure-system upgrades, the core business remains debt-free with strong cash flows. Management remains confident in achieving a ₹430 crore revenue target for FY26 and expects significant margin expansion from ~10% to 24% as manufacturing and helium segments scale. The upcoming ₹364 crore rights issue will finalize the funding for the Bhilwara R-32 plant, positioning the company for a 35% CAGR over the next three years.
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