Gujarat Fluorochemicals shares surge nearly 7.5% after profit surges 70% in June quarter

Shares of the country's leading refrigerant gas maker, Gujarat Fluorochemicals, rose as much as 7.47% to hit an intraday high of ₹3,757.75 on the BSE a day after it reported June quarter earnings. On the National Stock Exchange, Gujarat Fluorochemicals shares rose as much as 7.5%.

Gujarat Fluorochemicals on Tuesday reported a consolidated net profit of ₹184 crore in the first quarter of current financial year (Q1FY26), marking an upside of 70% from ₹108 crore in the same period last year.

Its revenue from operations in April-June period rose 9% to ₹1,281 crore from ₹1,176 crore in the year-ago period.

The company reported strong operational performance as its operating profit also known as earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 31% to ₹344 crore and its operating profit margin improved by 460 basis points (bps) to 26.85%.

During the quarter, chemical segment was the key growth driver, with EBITDA surging 33% year-on-year (YoY) to ₹354 crore. Margins improved by 495 bps YoY to 28%. Chemical segment net profit came in at ₹196 crore, a 69% YoY increase.

Its fluoropolymer business recorded its highest-ever quarterly revenue at ₹798 crore, up 16% YoY. Growth was fuelled by higher volumes and an improved product mix. New fluoropolymer volumes continued to rise, with the company securing commercial orders and approvals for high-purity grades used in semiconductors, aerospace and automotive sectors, marking a significant milestone in diversification and market penetration, Gujarat Fluorochemicals said.

The company commenced commercial production of R32 gas during first quarter, several quarters ahead of schedule, through retrofitting existing infrastructure with minimal capital expenditure. With this launch, the company now offers a complete portfolio of refrigerants including R22, R32, R125 and R410A, Gujarat Fluorochemicals added.

While R-22 prices saw an uptick during the quarter and are expected to rise further with global cuts in production quotas, the fluorochemical vertical experienced a decline in the US due to reduced sales of R410A and R125, the company said.

As of 1:48 pm, Gujarat Fluorochemicals shares traded 5.07% higher at ₹3,673, outperforming the NIFTY50 index which was down 0.17%.