Gujarat Fluorochemicals Ltd Q1 FY27 Earnings Analysis

- EBITDA growth is expected alongside volume growth, driven by higher margin products. (Page 15) - Significant quarter-on-quarter revenue growth anticipated in battery chemicals, reaching a 3-digit crore exit rate by Q4 FY '27. (Page 15) - Refrigerant (R-32) capacity ramp-up to 20,000 tons expected, with contracted sales and no selling challenges. Revenue growth to follow capacity scaling. (Page 14) - Fluoropolymers business will see volume and EBITDA growth as capacity utilization approaches optimum and new higher-value polymers are added. (Page 14) - Battery materials business ramping up with commercial sales starting for LiPF6 salt and cathode active materials; revenues to grow quarter-on-quarter. (Pages 12-13) - Expected 15-20% growth in fluoropolymers volumes in FY '27, with pricing and volumes both increasing. (Page 9) - Full earnings potential from battery materials investments expected by FY '29 with optimum utilization. (Page 5)

- EBITDA growth is expected alongside volume growth due to higher-margin products (Page 15). - Significant quarter-on-quarter revenue growth anticipated in the battery chemicals segment, reaching a three-digit crore exit rate by Q4 FY '27 (Page 15). - Short to medium-term growth driven by refrigerant and fluoropolymer segments (Page 15). - Medium to long-term growth driven by advanced battery materials business scaling up (Page 15). - Fluoropolymers segment expected to continue volume and EBITDA growth with capacity ramp-up and addition of high-value polymers (Pages 13-14). - Battery materials business to realize full earnings potential by FY '29 as facilities ramp up and optimize utilization (Page 5). - Capex of ~INR2,300 crores planned for FY '27 in battery materials with targeted EBITDA margins above 25% and asset turns of ~2x (Page 5). - Chemicals business (excluding EV) shows steady-state EBITDA margins in line with prior expectations, with planned capex to support growth (Pages 9-10).

- INR 850 crores capex planned for FY '27 on chemical side: - INR 150 crores for expanding refrigerant gas (R-32) capacity to 20,000 tons. - INR 222 crores for new high-purity electronic specialty chemicals (semiconductor sector). - INR 250 crores for new fluoropolymer capacities (focusing on new fluoropolymers). - INR 230 crores on backward integration and maintenance. - INR 2,300 crores capex planned for FY '27 on EV battery materials: - Capacity expansions across existing battery material products including LiPF6 salt and LFP cathode active material. - New natural graphite anode active material facility. - This is part of a cumulative INR 6,000 crores capex planned for battery materials by FY '28. - Oman project capex proceeding as planned, unaffected by Middle East geopolitical issues. - Further fluoropolymer investments planned as existing capacities near full utilization. - Capex aims to achieve asset turns close to 2x and EBITDA margins above 25%, with full earnings potential by FY '29.

- No explicit mention of any current or planned new fundraising through debt or equity in the transcript. - The company discussed ongoing and planned capex, including INR2,300 crores for FY '27 on battery materials and around INR800 crores for the standalone chemical business. - The cumulative capex guidance remains at INR6,000 crores over 4-5 years for the EV segment. - Management highlighted capitalization of assets and funding ongoing expansions but did not specify raising fresh capital via equity or new debt. - Existing projects appear funded through internal accruals or prior arrangements; no clear indications of upcoming fundraising events.

- All initial capacities under Phase One of the battery materials business have been commissioned and contracted for. - Marquee anchor customers secured across all battery material products, providing confidence on utilization ramp-up. - LiPF6 salt has approvals from most major global electrolyte players; commercial sales scaling in line with plans. - Orders are in place for FY '27 and beyond, with production expected to ramp up quarter-on-quarter. - Cathode active material samples received initial approval; final qualification expected by Q3 FY '27, with off-take agreements for entire capacity. - The natural graphite anode active material facility is planned, further expanding product portfolio and order potential. - For R-32 refrigerant, the current 10,000-ton capacity is commissioned and operating at optimal levels with contracts in place. - The fluoropolymers business has contracts in some cases, both domestic and export, with confident volume ramp-up. - Overall, orderbook visibility is strong across battery chemicals, refrigerants, and fluoropolymers segments.