Capacity expansion, new launches to support Navin Fluorine’s growth

The optimism is driven by newly commissioned capacities, a strengthening specialty-chemicals pipeline and planned expansion of production facilities.

The management has guided for a strong operating margin before depreciation and amortisation (EBITDA margin) outlook for the current financial year.

The company’s business related to Contract Development and Manufacturing Organisation (CDMO), which contributed 14% to revenue in the December 2025 quarter, has been growing faster than its other verticals.

The CDMO division is expected to stay on growth track given the capacity addition. The recent commissioning of its cGMP-4 (current Good Manufacturing Practice) facility provides CDMO revenue visibility for nearly three years.

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The other vertical of specialty chemicals, which accounted for 40% of the December quarter revenue, has also shown traction.

As part of its expansion in this segment, NFI is in the process of constructing a facility to produce immersion cooling fluids in partnership with the US based Chemours. The project remains on track for completion in the first quarter of FY27 and is expected to enhance the company’s position in the global fluorochemical value chain.

Capacity expansion projects across other sites are also underway. The company is debottlenecking its multipurpose plant, which manufactures a range of specialty and agrochemical intermediates, at Dahej in Gujarat to increase throughput. This project is scheduled for commissioning in December quarter of FY27.

NFI is also scaling up its R-32 (one of the widely used hydrofluorocarbons refrigerants) capacity by 15,000 MTPA under its broader hydro fluorocarbons expansion programme, with completion targeted for the December 2026 quarter.

These investments are designed to meet rising domestic and export demand by catering to new applications and emerging regulatory shifts in the refrigerants market.

The company expects EBITDA margin to hold around the 30% level, supported by operating leverage from new assets, better realisations from higher value products, and the gradual ramp up of recently commissioned facilities. JM Financial Institutional Securities has raised the FY26-28E EBITDA estimates by 18-21% and EPS estimates by 18-24%.