NAVINFLUOR - Navin Fluorine International Limited Share Price

In the earnings call for Q1 FY '26, Navin Fluorine International Limited provided an optimistic outlook for the year ahead, citing strong growth and strategic advancements. Management highlighted a successful INR750 crores Qualified Institutional Placement (QIP) which bolstered their capital for future growth initiatives.

Key highlights include:

• Revenue surged by 39% to INR725 crores.
• Operating EBITDA more than doubled to INR207 crores, reflecting a growth of 106%.
• Net profit rose by 129% to INR117 crores compared to the previous year.

Management indicated robust performance across all business divisions and expressed confidence in sustained momentum. The HPP segment reported successful commercialization of the R32 project, which began operations in March 2025. The company plans to engage with international partners to leverage growing global demand for R32.

In the Specialty Chemicals segment, the company is set to launch three new molecules in Q2 FY '26 and anticipates a significant contribution from its fluoro specialty project. A strategic partnership with Chemours for proprietary products further emphasizes their focus on high-margin opportunities.

For the Contract Development and Manufacturing Organization (CDMO) division, strong revenue visibility is assured, with ongoing expansion efforts set to commercialize the cGMP4 Phase 1 facility in Q3 FY '26. The management confirmed a capex guidance increase to INR700 crores to INR1,000 crores, emphasizing disciplined spending on high-value projects.

Overall, management remains focused on operational excellence, customer relationship enhancement, and strategic growth in emerging sectors, positioning the company well for continued robust performance throughout FY '26.

1. Sanjesh Jain's Question on R32 Capacity: "Are we looking to harness the entire opportunity given that there is a strong demand for R32 and pricing looks much firmer than expected?"

   Anish Ganatra's Answer:
   Yes, we will stake our right to the entitlement for R32. We will proceed when discussions with large customers are more firmed up, ensuring favorable product realization aligns with our interests and those of our shareholders.

2. Sanjesh Jain's Question on Nectar Performance: "Is it the INR300 crores we expected from the anchor customer that will deliver?"

   Anish Ganatra's Answer:
   Yes, we have a firm order for the remainder of the year, which should align with the INR300 crores. Our focus is to prioritize the new molecule, with deliveries commencing in Q2 FY '26.

3. Sanjesh Jain's Question on Capex Plans: "Can you share more on the capex plan for FY '26 and '27, especially considering the recent cash raise?"

   Anish Ganatra's Answer:
   Our capex frame is set to expand from INR500-600 crores to INR700-1000 crores for FY '26. This increased capex will only be deployed on projects that provide significant value.

4. Jason Soans' Question on Agchem Recovery: "What are you hearing from customers regarding inventory rationalization?"

   Anish Ganatra's Answer:
   Inventory issues are resolved, and while there is slight volume recovery, pricing remains competitive due to Chinese market pressures. We have solid order visibility for specialty agchem products.

5. Krishan Parwani's Question on cGMP4 Phase 2 Capex: "When will Phase 2 of cGMP4 begin and which customer is it for?"

   Anish Ganatra's Answer:
   Phase 2 of cGMP4 will start once capacity utilization exceeds 60%. Initially, it's likely for an EU major product, ensuring we have the needed flexibility for future expansions.

6. Ankur Periwal's Question on Capex Guidance: "Are we including pharma in the capex guidance or focusing only on specialty chemicals?"

   Anish Ganatra's Answer:
   The capex allocation is agnostic, aligning with our strategic priorities across all verticals, including advanced materials and pharma as opportunities arise.

7. Arun Prasath's Question on Nectar Capacity Utilization: "What kind of capacity utilization should we expect for the Nectar project?"

   Anish Ganatra's Answer:
   The dedicated capacity for Nectar will represent 100% utilization this year, with plans for full capacity to ramp up next year, which is aligned with our overall strategy.

8. Surya Narayan Patra's Question about HF Project Service Angle: "What is the service angle in the HF project?"

   Anish Ganatra's Answer:
   The service angle will focus on partnerships with major companies to leverage our capabilities, ensuring alignment with high-value applications rather than commoditization.

9. Bhaskar Chakraborty's Question on Tariffs: "How does the new U.S. tariff impact our exports, especially to Honeywell?"

   Anish Ganatra's Answer:
   Our exposure to U.S. sales is limited. Existing long-term contract supplies help mitigate tariff impacts. It's early to assess long-term changes resulting from these tariffs.

10. Nilesh Ghuge's Question on Chemours Project Revenue Potential: "What stage is the Chemours project at currently?"

Anish Ganatra's Answer:
The project is on track with detailed engineering underway. We expect to initiate commercial production by the first quarter of FY '27, although specific revenue projections can't be disclosed.