Gujarat Fluorochemicals Announces Refrigerant Capacity Expansion to Include R134A Gas

Synopsis: Gujarat Fluorochemicals Limited (GFL) has announced its strategic intent to expand its refrigerant manufacturing capacity, including the addition of R134A, to fully utilise its refrigerant gas entitlement under the Montreal Protocol and the Kigali Amendment. 

GFL has already secured all necessary statutory approvals, safety certifications, process engineering blueprints, and environmental compliance mechanisms required to support the newly expanded chemical manufacturing lines.

Gujarat Fluorochemicals Limited currently trades at Rs 3,875, down from yesterday’s closing price of Rs 3,909.2. The stock opened at Rs 3,900 and struck a day high of Rs 3,906.8; the day’s low so far is Rs 3,830.4. The current market capitalisation of the company is Rs 42,619 crore, with a price-to-earnings ratio of 72.4 times, which is higher than the peer median industry ratio of 28.99 times.

Understanding the Expansion

Refrigerants are special gases used to cool air conditioners, refrigerators, commercial cooling equipment and industrial equipment. Gujarat Fluorochemicals is increasing its production capacity and including a new refrigerant, R134A, in its existing product portfolio. 

The goal is to meet the rising demand for cooling solutions worldwide while making use of the company’s entire production allocation under international environmental regulations.

By increasing refrigerant capacity, GFL can maximise its Kigali Amendment quota and production capacity. This can increase product mix, market share and revenue in the long term. GFL has successfully established an expansive international marketing and logistics network, supported by wholly owned overseas subsidiaries, including Gujarat Fluorochemicals GmbH in Hamburg, Germany, and GFL Americas in Texas, USA.

The announcement also reinforces GFL’s long-term strategy of focusing on high-value fluorochemical products serving industries such as automotive, electronics, renewable energy and advanced cooling technologies.

Financials

Gujarat Fluorochemicals Limited reported revenue from operations of Rs. 1,369 crore in Q4 FY26, compared to Rs. 1,136 crore in Q3 FY26 and Rs. 1,225 crore in Q4 FY25. This reflects an increase of 20.51 percent quarter-on-quarter and a growth of 11.75 percent year-on-year. 

Net profit for Q4 FY26 increased to Rs 109 crore, compared to Rs 102 crore in Q3 FY26, but decreased from Rs 191 crore in Q4 FY25. This represents a subtle increase of 6.86 percent quarter-on-quarter and a decrease of 42.93 percent year on year. Earnings per share (EPS) remained nearly stable at Rs. 9.92 from Rs. 9.29 in the previous quarter. In terms of return ratios, the company’s ROCE and ROE stand at 9.86 percent and 7.78 per cent, respectively, and its debt-to-equity ratio is at 0.29 times.

Bottom Line

Dr Bir Kapoor, Deputy Managing Director & CEO, said the company’s integrated manufacturing, global marketing network, and long-standing customer relationships position it to meet rising refrigerant demand in India and abroad.

Gujarat Fluorochemicals Limited is a part of INOXGFL Group and is one of the world’s largest producers of fluoropolymers, speciality chemicals, refrigerants and bulk fluorochemicals. It has more than three decades of experience in fluorine chemistry and serves industries such as EVs, semiconductors, data centres, renewable energy, hydrogen and advanced industrial applications through its manufacturing facilities in India and an international distribution network.

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