Now Reading: Navin Fluorine to add R32 capacity as CDMO revenue accelerates
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Navin Fluorine to add R32 capacity as CDMO revenue accelerates
Navin Fluorine International is adding hydrofluorocarbon (HFC) capacity of up to 15,000 tonnes of R32, to be commissioned in Q3FY27, as the company looks to sustain its growth momentum. The management indicated…
Navin Fluorine International is adding hydrofluorocarbon (HFC) capacity of up to 15,000 tonnes of R32, to be commissioned in Q3FY27, as the company looks to sustain its growth momentum. The management indicated a peak annual revenue potential of Rs 600-825 crore from the additional R32 capacity. Revenue grew 41% year-on-year in FY26 to Rs 3,314 crore, with Ebitda margin at about 33%.
The CDMO business contributed Rs 180 crore in Q1FY27, up 82% year-on-year, and the management is confident of CDMO revenue reaching $100 million in FY27. Navin plans to invest Rs 700 crore in FY27, with annual capex expected at Rs 700-1,000 crore over the next 2-3 years. The company trades at 48 times its FY27 estimated earnings, leaving little room for execution misses.
Indian Opinion Analysis
Navin Fluorine's R32 bet comes as India remains oversupplied in that refrigerant, meaning the additional output must win export orders without eroding realizations. The CDMO target of $100 million in revenue this year is ambitious: the business delivered Rs 180 crore in the June quarter, implying a sharp ramp-up in the remaining three quarters. With the stock already pricing in 48 times FY27 earnings, any slippage in the R32 commissioning timeline or CDMO customer wins could trigger a re-rating. The market will watch quarterly export volumes and the Q3 commissioning date for signs of delivery.
The company faces pricing pressure in Latin American agrochemicals, which it aims to offset by shifting focus to global innovators and differentiated molecules.
Source: livemint.com
This brief was synthesised by AI from the source linked above.
