6% growth masks profit slide; cost recovery path clear for FY28

₹187.2 Cr, +6.3% YoY; driven by solar grade DHF and AHF volumes

OPM 15.3% aligns with prior 15-18% range; PAT down 12.9% shows cost impact not yet recovered

PAT ₹16.8 Cr (-12.9% YoY vs ₹19.4 Cr Q1 FY26); cost explanation consistent with delivered result

Solar grade driving revenue growth; capacity utilization disclosed; revenue growth consistent with ramp narrative

Project tracking on schedule; capex ₹395 Cr (vs prior ₹495 Cr); ₹100 Cr cash outflow Q1 consistent with commitment

New: 30% FY27 growth, 60% FY28 growth. Prior call only mentioned ₹3,000-3,500 Cr long-term vision. Specificity adds credibility.

Project capex ₹395 Cr vs prior ₹495 Cr (₹100 Cr improvement via execution optimization). ₹315 Cr committed as of Q1; no cost overrun expected.

4-year capex ₹1,500-1,700 Cr: solar DHF (₹30-40 Cr), AHF (₹120 Cr), electronic grade (₹150 Cr), later HFOs & fluoropolymers. Prior call vague on future capex.

New: 25% blended EBITDA margin FY28 (existing business 16-20%, R-32 ~30%). Prior call only hinted at long-term margin potential.

Existing business 16-19% from Q2 onwards (prior 15-18%); R-32 ~30%. Core range maintained; Q4 FY27 blended 21-22%.

FY27 30% growth, FY28 60%+ growth. Q2-Q3 margins 16-19%, full year FY27 blended 21-22%; FY28 ~25% once R-32 operational.

No formal hedging disclosed. Sulphur ₹30→₹105; pass-through mechanism 30-45 day lag; availability not an issue; multiple supplier geographies.

HFC-32 margin ~30%; blended business ~25%. No change from prior call guidance.

Mix own + licensed tech; 10 PPB impurity spec a high barrier; 4-5 month learning curve; customer approvals lengthy. Only producer today; approved by all majors.

~15% pricing growth + 6-8% volume growth = 6% net. Blended from product mix.

Solar grade ₹30-40 Cr, AHF ₹120 Cr, e-chem ₹150 Cr (~₹300 Cr total). Start after R-32 commissioning (Dec); 12-15 month horizon.

FY27 Q4: 65-70% utilization (startup phase). FY28: 80-85% conservative. Management confident of 90%+ utilization.

30,000 MT HF total; R-32 takes 15,000 MT internal; ~7,000-8,000 MT AHF external sales remain. Yes, interim AHF revenue decline; expansion capex 12-15 month lag.

$5.5/kg contracted (formula-based, cost pass-through included); 5-7 year terms; speed-to-market priority. 65% fixed EBITDA/ton margin; 30% spot play.

Evaluating multiple tech tie-ups; immediate priority solar grade. E-chem capex ₹150 Cr broad ±10%. Capex starts post-R-32 commissioning.

60% complete; 30-35% remaining by Nov; commissioning Nov-end. Machines arriving Sept 10, erection 20-25 days. Product approved (lab → pilot → third-party tested); no cost overruns expected.

1/3 solar grade, 1/3 pharma/agro/refrigerant, 1/3 surface treatment/steel/glass/inorganic fluorides. Named: Jindal, Piramal, Cohizon, Tata, Adani, Premier Energies.

Plan to almost double; 85% currently contracted; new solar players driving demand. Capex details forthcoming.

Confidential; 2-3 options under development; will not pursue commodity fluoropolymers. Contract-led, high-niche products only.

Domestic HF demand 30,000-35,000 MT/year. Peer HF capacity additions pose no threat: 1/3 for solar (uncontested), 1/3 captive R-32, 1/3 dispersed applications.

AHF controlled, dual-use chemical; stringent regulatory approvals, end-use docs, license requirements; logistic challenges (ISO tanks return empty). No pricing pressure observed.

Head: Dr. L.R. Ravichandran (40+ years); 10+ professionals, 3-4 PhDs; 5-8 products pipeline. R&D capex ₹7-8 Cr last 1.5 years; revenue expense ₹5-6 Cr.

Strict <10 PPB impurity spec; capex required; 4-5 month learning curve. Doesn't come day 1. E-chem 1,000x harder; will need tech tie-up.

Approval cycle primary (1-1.5 years semicon); will tie up with tech suppliers to reduce time. Own capex investment; customer-led model.

FY27 assumes R-32 Q4 launch (3 months contribution) + solar DHF ramp. FY28 assumes full-year R-32 at 80-85% utilization. Dependent on execution.

Implies 16-19x growth, ~65-75% CAGR. Hinges on R-32 (₹900-1,000 Cr potential), solar DHF expansion, AHF, e-chem, HFOs, fluoropolymers.

Existing business 16-19% achievable once cost pass-through completes (30-45 day lag). R-32 Q4 will be higher margin but limited 3-month ramp.

Assumes R-32 80-85% utilization. HFC-32 project margin ~30%, existing business ~18-20%. Blended ~25%.

60% construction done; ₹100 Cr cash outflow Q1. Machines arriving Sept 10; erection 20-25 days. Commissioning Nov-end. No overruns expected.

Starts post-R-32 commissioning (Dec). Phased over 12-15 months. Broad estimates ±10%.

Covers solar expansion, AHF expansion, e-chem, HFOs, high-performing fluoropolymers. Phased 2027-2031.

₹395 Cr HFC-32 project 60% done; commissioning targeted Nov-end. Machines arrive Sept 10, erection 20-25 days. Any delay would push ramp-up timeline and FY28 revenue/margin targets.

Sulphur price spiked ₹30→₹105 in Q1; power/fuel costs elevated (captive plant downtime for maintenance). While pass-through mechanism exists (30-45 days), Q1 PAT fell 12.9% YoY despite revenue growth. Geopolitical risk ongoing.

65% of R-32 capacity pre-contracted: 2 firm (1 Japanese, 1 domestic OEM) + 1 MoU (5,000 MT). If demand weakens or prices fall sharply below contract midpoint (currently $5.5/kg vs spot $9-10), renegotiation risk exists.

TANFAC claims India monopoly in solar grade DHF. Barriers: 10 PPB impurity spec, capex, 4-5 month learning curve. If larger players (Ghcl, Solvay) enter, market dynamics shift. 6x-8x solar capacity growth provides room, but margin pressure possible.

E-chem AHF requires 100 PPT impurity (1,000x harder than solar grade). Management targeting tech tie-up to accelerate. 1-1.5 year approval cycle post-launch adds delay. Capex ₹150 Cr broad ±10% estimate; customer qualification uncertain.