Navin Fluorine International Ltd has emerged as one of the strongest performers in the chemical space, consistently delivering higher returns than many peers despite industry volatility. While many players struggled, Navin Fluorine expanded its high-value chemical business, improved capacity, and secured strong orders, helping it stand out and perform better than the overall chemical sector.
Navin Fluorine International Ltd, with a market capitalization of Rs. 29,401 crore, closed at Rs. 5,738 per equity share, down by 0.44 percent from its previous day’s close price of Rs. 5,763 per equity share.
In the past one year, Navin Fluorine International Ltd has delivered an impressive return of 60 percent, making it the top performer in the entire chemical sector. This outperformance stands out even more when compared to the Nifty Chemical Index, which has recorded a negative return of 4.1 percent, with most chemical stocks trading in the red during the same period.
About the Company
Navin Fluorine International Limited, founded in 1967 and headquartered in Mumbai, is a leading manufacturer of specialty fluorochemicals serving both Indian and global markets. The company produces refrigerants under the Mafron brand for air conditioners, refrigeration systems and industrial cooling applications. It also offers a broad range of inorganic fluoride products used in oil and gas, pharmaceuticals, agrochemicals, electronics, stainless steel, abrasives and solar energy industries.
In the value-added segment, Navin Fluorine manufactures specialty fluoro-intermediates, including boron trifluoride-based products, which are widely used in pharmaceutical, crop protection, fragrance and hydrocarbon applications. Along with its product portfolio, the company provides contract research, development and manufacturing services, supporting customers with custom fluorinated chemical synthesis across pharma, agro and specialty chemical segments.
Financial Outlook
The company reported revenue of Rs. 758 crore in Q2 FY26, reflecting a 46 percent growth year-on-year from Rs. 519 crore in Q2 FY25 and a 4.5 percent increase quarter-on-quarter from Rs. 725 crore in Q1 FY26. EBITDA also strengthened sharply, coming in at Rs. 246 crore in Q2 FY26, which represents a 129.5 percent increase year-on-year compared to Rs. 107 crore and a 18.8 percent rise quarter-on-quarter over Rs. 207 crore in the previous quarter.
Profit after tax stood at Rs. 148 crore in Q2 FY26, marking a 150.8 percent jump year-on-year from Rs. 59 crore and a 26.5 percent increase quarter-on-quarter from Rs. 117 crore in Q1 FY26. Overall, the company demonstrated strong momentum across revenue, operating performance, and profitability on both yearly and sequential bases.
Over the past three years, the company has demonstrated strong growth, achieving a revenue CAGR of 17 percent, a profit CAGR of 3 percent, and stock price CAGR of 9 percent, reflecting both its operational performance and market confidence.
A return on equity (ROE) of about 11.5 percent, a return on capital employed (ROCE) of about 11.7 percent and debt to equity ratio of 0.33 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 66.2 higher as compared to its industry P/E 29.2.
CDMO Segment
Navin Fluorine’s CDMO business is gaining strong traction, backed by a healthy project pipeline and rising global demand. A key growth driver is its agreement with Fermion Oy of Finland, the manufacturer of Darolutamide, a prostate cancer drug expected to generate $4 billion in global sales by CY29. Analysts estimate Navin’s intermediate supplies for this molecule could contribute nearly $60 million at peak revenue.
To support this scale-up, Navin has commissioned the first phase of its fourth cGMP facility in September, primarily for Fermion-related demand, and it is currently under validation with commercial production targeted to begin by January. The site has already undergone audits from three major global firms, highlighting a strong business runway. As market demand continues to rise, the company also plans a second phase expansion of cGMP-4 once capacity utilization reaches 60–70 percent, further strengthening long-term visibility for its CDMO segment.
Capex Plans
The company has announced two major capex plans under HFC and MPP segments. In the HFC division, it will add new HFC capacity equivalent to up to 15,000 MTPA of R32, supported by a favourable global demand–supply environment and rising demand for low-GWP gases in both domestic and export markets. This project involves an investment of around Rs. 236.5 crore, funded through internal accruals, and is expected to be commissioned by Q3 FY27, with a peak revenue potential of about Rs. 600-825 crore per year.
In the MPP segment, the company will de-bottleneck capacity at Dahej to support the launch of a new molecule for a global innovator. The decision is based on strong growth projections from the client, supported by a purchase order received for CY26. This capex will require Rs. 75 crore, also funded internally, and is targeted for completion by Q3 FY27. Once operational, it is expected to generate peak annual revenue of approximately Rs. 140-160 crore.
Future Outlook
During its recent analyst interaction, the company reaffirmed its long-term growth roadmap, setting an ambitious target of achieving $100 million (approximately Rs. 900 crore) in CDMO revenue by FY28. The guidance appears well-supported by current momentum, as the CDMO segment nearly doubled its revenue year-on-year to Rs. 134 crore in Q2FY26, driven predominantly by export demand, which accounted for over 95 percent of the segment’s contribution. This reflects strong order visibility, increasing global traction, and confidence in scaling capabilities over the coming years.
Conclusion
Navin Fluorine has performed much better than most chemical companies mainly because it focused on high-value products, expanded capacity, and secured strong orders. Its revenue, profit, and margins have grown sharply, and new projects in the CDMO and HFC segments are expected to boost future earnings even further. With increasing demand, solid financial progress, and clear growth plans, Navin Fluorine looks well-positioned to keep performing strongly going forward.
Written by Akshay Sanghavi
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