Gujarat Fluorochemicals Limited (NSE: FLUOROCHEM) Q3 2026 Earnings Call dated Feb. 12, 2026
Corporate Participants:
Bir Kapoor — Deputy Managing Director and Chief Executive Officer
Kapil Malhotra — Business Head of Fluoropolymers
Rajiv Rao — Business Head of our Battery Materials
Analysts:
Arun Prasath — Analyst
Sanjesh Jain — Analyst
Rohit Nagraj — Analyst
Archit Joshi — Analyst
Ketan Gandhi — Analyst
Krishan Parwani — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Gujarat Fluorochemicals Ltd. Q3FY26 earnings conference call hosted by Avendus Park Institutional Equities. As a reminder, all participant lines will be in the listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star10Zero on your touchtone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Arun Prasad from Avender Spark Institutional Equities. Thank you. And over to you, sir.
Arun Prasath — Analyst
Thanks, Panak. Good evening everyone. On behalf of Avender Spark Institutional Equities I welcome everyone to this earnings call to discuss the three QFY26 results of Gujarat Fluorochemicals Ltd. The company is represented by its Deputy managing director and CEO Dr. P and the other senior members of the management team.
I’ll first request Dr. Bir Kapoor for the opening remarks. Over to you, sir.
Bir Kapoor — Deputy Managing Director and Chief Executive Officer
Thank you. Good afternoon everyone. A very warm welcome to all of you for GFL’s Quarter 3 FY26 earnings call. For this call, I have with me my colleagues. Mr. Akhil Jindal who is Group CFO. Mr. Manoj Agrawal who is CFO of GFL. Mr. Kapil Malhotra, Business Head of Fluoropolymers and Mr. Rajiv Rao who is the business head of our battery Materials. The company announced its Quarter 3 FY26 results at its board meeting today. The results along with earning presentations are already available on the Stock Exchange and on our website. I’ll briefly highlight the key financials and then give you an update on business operations and outlook.
This quarter was undoubtedly one of the most challenging for US. Performance was impacted by seasonal weakness in refrigerant segment, the holiday season in Europe and continued uncertainty around US Tariff situation. The elevated US tariffs not only affected the US market directly but given the complexity of global supply chain, it also had a spillover impact on other regions as well. This impacted on both volumes and realizations during this quarter. That said, the outlook going forward is meaningfully more constructive. The recent reduction in U.S. tariffs from 50% to 18% provides significant relief and restores competitiveness in one of the key export markets.
We believe this structural improvement will support a recovery in volumes, better pricing stability and margin expansion over the coming quarters. At the same time, demand in fluoropolymers remain encouraging particularly from the semicon sectors where global investments and capacity additions continue to be strong. This is expected to support volume growth and strengthen overall performance. We are also witnessing increasing momentum in the EV ESS segments globally. With improving order inflows and better visibility, we are confident that FY27 should see healthy revenue growth from this vertical. Overall, the combination of tariff rationalization, commencement of R32 production, faster EV ESS adoption provides a stronger foundation for recovery in both revenue and profitability.
Let me now briefly touch upon the financial performance. Revenue for the quarter stood at 1,136 crores, a marginal decline of 1% year on year. In Q3FY26 EBITDA stood at 283 crores reflecting a 7% decline from 304 crore in quarter 3 FY25. This decline was primarily attributable to the refrigerant portfolio which bore the brunt of multiple headwinds during the quarter. The most adverse pressure came from R22 where we faced a dual impact. First, the production quota reductions constrained volumes. Second, seasonally subdued demand affected offtake. Also, the delay in R32 production startup resulted in lower than expected profitability for us.
In addition, R125 prices remained weak during the quarter, further contributing to the softness in performance. Despite these near term challenges, the underlying fundamentals of the business remain intact. As seasonal demand normalizes and refrigerant volume picks up, we expect improved profitability in coming quarters. Let me now walk you through the performance of each business segment. The fluoropolymer segment delivered healthy growth of 14% year on year, though revenue declined 3% sequentially. The quarter on quarter moderation was primarily due to uncertainty around US Tariff policies which led to cautious ordering patterns and temporary deferment of demand in key export markets.
With the recent tariff reduction, we are seeing improved customer sentiment and better order visibility. We expect strong momentum in this segment going forward supported by structural demand drivers, particularly from the semicon industry. In the fluorochemical business, revenue declined by 33% year on year and 24% sequentially. The decline was largely due to refrigerant business. As explained earlier, the specialty chemical remains subdued reflecting near term demand softness on a year on year basis. Revenue in the bulk chemical segment declined mainly due to lower prices in chloromethanes and caustic soda. Let me now turn to our battery material business which is an important strategic focus area for us.
On 5th of December 2025, the International Finance Corporation has approved investment of Rs. 430 crores in our subsidiary GFCL EV Products Ltd. This investment supports the development of India’s first integrated battery materials manufacturing facility and strengthens the domestic EV supply chain ecosystem. IFC’s participation reflects confidence in our strategy and execution capabilities as endorsement of our business strategy and growth prospects in the battery material space. Another sovereign fund has approved investment of $82 million US dollars in battery materials business. The documentation is in process and likely to be executed shortly. When we entered the battery materials space, our approach was focused on building capabilities, securing customer validation and scaling in a disciplined manner.
Keeping that in mind, we are setting up a state of the art greenfield advanced battery materials project in Oman to produce battery materials for lithium ion batteries with an estimated investment of US$216million in LIPS 6. We have worked closely with the leading global electrolyte manufacturers and OEMs. Our products have been approved by many OEMs and our facility has been successfully audited by key customers. Commercial supplies commenced in December 25th and we have already received repeat orders in Q4FY26. As customer offtake increases, we expect volumes to scale up steadily in LFP cathode active material. Our plant has stabilized operations, we have begun sample dispatches to prospective customers and qualification process is progressing.
We expect approvals over the coming months following which commercial supply will commence in fluoropolymer binders. The qualification process is progressing as planned with commercial operation expected to begin in the first half of FY27. This further strengthens our integrated battery materials portfolio. Stepping back, we are building a comprehensive and integrated battery materials platform. With established capacities, ongoing qualifications, early commercial traction and IFCs and one more sovereign fund’s strategic investment, we believe we have created a solid foundation for the growth of this new business. The battery material segment is particularly promising given the recent surge in demand for battery energy storage system.
In addition to continued growth in EVs, structural drivers such as data centers, AI and machine learning infrastructure and the transition towards renewable energy are expected to drive significant growth in energy storage demand over the coming years. Overall, while the current quarter was challenging, we see improving conditions ahead. We remain focused on execution, cost discipline and scaling our new growth platforms responsibly. We remain confident in our ability to deliver sustained growth and create long term value for all our stakeholders.
Thank you and now I open the floor for questions.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may may please press STAR and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a Moment. While the question queue assembles. The first question is from the line of Sandesh Jain from ICICI Securities. Please go ahead.
Sanjesh Jain
Yeah, thank you. Good evening sir. Thanks for this opportunity. I got few questions. First on the refrigerant gas both on R32 and R22. R32. We said that we have commissioned the plant in month of February. Can you help us with what is the capacity we have started with and where are we now in the first fortnight of this commissioning? What is the utilization we are looking at and for the full year? What kind of capacity are we looking at and what is the final capacity? Are we intending by December 26 where the deadline end with this capacity already getting delayed? Are we looking at 30,000 or we are satisfied with whatever capacity we have today? That is number one.
Number two on the R22. The prices appear to be have further gone down as we speak in the month of Jan and Feb. In this background, how should we look at margin? Because a lot of founds on the margin has come up from the bulk chemical and R22 which appears to have remained either weak or has only got further weaker. So this is the first comment. Thank you.
Bir Kapoor
Yes, thanks, Sanjish. I had indicated earlier that our plan was to build capacity in phases in R32. I had indicated in the last call that target is to go for 20,000 ton in the first phase. Of course there was a setback due to the incident. And because of this our plan got a little bit delayed. However, that delay is not significant. Our plan is to still Commission going to 20,000 ton as I had indicated earlier. Of course at that time I had indicated it was going to be March end. Now I expect that to be slightly delayed by a quarter or maybe quarter and a half.
So our production has already started. Now of course it took time because we wanted to be absolutely sure with respect to the safety aspects. We got it audited by multiple agencies and make sure that when we start we start with on a solid foundation of having a very strong safety. So having said that so far everything is looking good. We have started it and going to be ramped up. This is and what you said December 26th. I think the number is December 27th. The capacity has to be can be added up to December 27th. Okay.
Of course in previous call also I had indicated that the long term plan is to go to 30,000 tonnes which is or take go up to our quota. That has been that we have today. So that plan still remains intact. But however in the first phase we will go up to 20,000 tonnes. Now coming back to R22.
Sanjesh Jain
Capacity we started right now with.
Bir Kapoor
It will be ramped up to 20,000 ton. It’s starting in phases. It’s going up right now.
Sanjesh Jain
Okay, got it.
Bir Kapoor
So coming back to R22, of course the prices have been, you know, low realization has been low and also it’s a double whammy in a way. However, going forward we are looking at in this sector now positive because of not only R32 but also 125 which prices are also subdued. And partly because of the US tariff and partly, you know, once we have an R32 it takes us to 410 as well.
So I think we are. Our outlook on refuge and section going forward is positive from here. Sanjish.
Sanjesh Jain
Got it, sir. My second question is on the fluoropolymer side of the business. You rightfully said that PFA is picking up for the semicon. How about the other fluoropolymer? Because we are still after all this effort and there were legacy players who went out and all those factors, we are still at 14% growth. We aspired for 20. We are still short of it. How should we look at this year and the next year?
Bir Kapoor
I will add first part here and then I’ll let Kapil take over from there. The first part is, you know. Yes. When we have looked at the growth and given you the number, there were multiple factors in, you know, which we were counting on. Of course one of them was anti dumping duty. Where of course as you know DGTR had recommended antidumping duty which was eventually not approved by the finance ministry. That of course has created eroded few percentage point from the growth that we are looking at. And of course the tariff situation has created deferred quite a few of the buying decisions.
So combined effect of these two in a way has taken more than a quarter off from what we were targeting earlier.
Kapil Malhotra
Hi Sanjay. So just continuing with what Dr. Kapoor has mentioned. First was the fact that we were counting some growth coming from the domestic market itself due to the anti dumping duty recommendations which were actually not accepted by Ministry of Finance coming to the other fluoropolymers in other parts of the world. So we have done well in some of the elastomer categories. We have grown there taking some market share from our erstwhile legacy players who are going out. Secondly, the other thing which I had also mentioned last time is that in these applications there are always qualification times also from the customers.
So they always keep some stocks from the legacy players in check and then slowly, slowly start approving and then once the stock reduces, they start onboarding us. So that particular process is on. So we are seeing that very steady growth coming in every quarter from the exit of these legacy players. And in elastomers or in other fluoropolymers we continue to gain market share as and when we are getting the approval from the customers.
Sanjesh Jain
Got it, got it. And particularly which fluoropolymer are we seeing a better offtake? And we may see more capacity coming in say this year and next year.
Kapil Malhotra
Sanjesh first of all rightly mentioned semiconductor industry. You must have also seen that we were mentioning that semiconductor industry is poised to grow from start of this year which has started happening. You must have been seeing the news in the media that chip shortages already started happening. Memory chip shortages are going high in prices. So the first green shoots we already started seeing in terms of increased demand coming from our customers. So PFA is one product where I am seeing that the demand will keep on increasing as and when we keep on getting a rapid ramp up approval from the customers.
Yeah and, and also we have invested our a lot of, you know, money in terms of getting to the clean class required by the semicon industry. So there also entire investments have been, you know, utilized, commissionings have taken place, audit from the customers have taken place, some of the audits are going on. So this is one place where we really see the business growing up. The second business is obviously the fluor elastomer business. There also we are seeing that the increased vehicle growth sales in India due to GST reduction and also income tax debate which government gave.
So we are seeing that demand in the market also converting to demands of our products also same way we are also seeing that with the tariff reductions in US further automobile industry they are also doing well. So there also we expect the demand to keep on, you know, growing and giving us more business as we are getting qualifications in some of the other exotic applications. And then we are also, you know, since it’s an engineered product. So we are also getting some requirements of the new applications. That’s where we have also developed some of the newer grades which are under qualifications or get or they have got qualified. So there also we see a growth coming in next year from these particular products and they are high value added products for us.
Sanjesh Jain
Got it, Got it. One last on the inventory side we were aspiring 120 and we are exactly on the other side of it at 200 1. What’s driving such a sharp increase in inventory. And why are we carrying so much of an inventory? Any particular reason for it?
Bir Kapoor
Yes, Sanjay. Let Kapil answer that.
Kapil Malhotra
So Sanjay, here we were actually building up the markets and we expected some of the stocks were built up in expectation of some of the orders coming in. However, last year we saw that in the last quarter also as it was a holiday period in usa Europe. And also some of these slowdowns happened due to tariffs. Also that we had to hold some inventories with us either over here or in our stock warehouses in other countries also. So that’s how the inventory went up. However, it has just offtake has started and we are seeing the diminishing inventories from right from the beginning of the last month.
Sanjesh Jain
So what is the aspiration on the working capital? Because it appears to be too stretched now, eating away all the capital for us. Where do we want to be in the working capital? Days earlier we used to talk of 120, now at 200 where we realistically can be say in a year’s time frame.
Bir Kapoor
So what we are targeting, Sanjay is somewhere around maybe 170 to 180 is what we think is a realistic number going forward. Because of our, you know, our business model is based on stock and sell and also shipping material early from here. So keeping that in mind, of course it’s on the higher side at the moment for the reason that has been explained by Kapil.
Sanjesh Jain
Okay, got it. And on the battery side, one last story on that. What is the aspiration for FY27? Where are we targeting now that we are looking? Slowly commercialization happening. How does FY27 and FY28 look for battery, chemical, particularly FY27. How does the order book look like? What is the potential? What is the potential revenue we can book?
Bir Kapoor
I mean it would be. Let me see the way we started, Sanjay, we started building our first plant so that we can get it qualified and then slowly ramp up. So if you look at today, the first plants are already materials in, you know, for example in LIP BF6 cases qualified. So our supply have started. Okay. LFP also the plant is commissioned. We got the right quality level. It’s going through the qualifications. The issue is that unfortunately in products in EV and ESS space, the qualification times are long. Okay. And the more critical the product is, the longer the qualification time.
Okay. So while we expected revenue to trickle in in this financial year which is happening, we expect 27 and 28 to be a growth year for us. Okay. So it will be Difficult for us to give you the exact projection of 27. But our order books for the capacity that we have built up today looks very healthy. So for the plan that are already there, we expect to get fully utilized probably by the end of this year. Okay.
Sanjesh Jain
AWe have put around 1700 crores of asset. If I’m right, what is the asset term we are looking at? And when we say full utilization that means.
Bir Kapoor
Asset turn. We had always given Sanjesh on the Truex product. And then again some products are higher, some product is lower. So it also depends on product. Once the plant gets fully utilized over a period of time, we intend to get that. But I’m not so sure whether the same turn would be achieved. It all depends on how the different product lines are getting.
Sanjesh Jain
Even if we talk about 1x kind of an asset and we are talking about what potential 1700 crores of revenue in FY27.
Bir Kapoor
But 1700 crores is right now commissioned at the moment. But there is also, you know, there are plants which are for example electrolytes. Electrolyte is for the Indian market which is a little bit on the slower side has not picked up. So we. So as the market. So we are looking at the global market. Sanjay. Okay. Some of our products are for US market. Very clearly electrolytes are based for Indian market. And as the market picks up these capacity will get utilized over a period of time.
Sanjesh Jain
To just be more specific, how many orders are commercially approved for us as in. In LIPF 6 in LFP? How many of the customer has commercially Approved us.
Bir Kapoor
The LIPF 6? We have several approvals. Let me put it this way, okay. Because multiple electrolyte players have visited us including OEMs. And typically the way it happens after qualification the supply is ramped up in a phase manner. Okay. So that process has started. That’s a very good part. That there is a confidence of customers on our capability to deliver. And that ordering process has started. Okay. And we expect this to continue to grow. LFP is at very early stage. It’s just got planned, got commissioned, we just got the quality, the samples are being sent out. So while I can say that we have a very clear visibility to order for the capacity that we have right now, the qualification time will take a few quarters and then the revenue stream will start coming up.
Sanjesh Jain
Will it be fair to assume that only LIPF 6 as a revenue will be booked in FY27? FY28 is when LFP will start. And electrolyte with how the India picks up on the Battery side is how one should look at it. Right?
operator
Ladies and gentlemen, the line for the management has been disconnected. Please hold while we reconnect them. Ladies. Ladies and gentlemen, the line for the management has been reconnected. Thank you. And over to you sir.
Bir Kapoor
Sorry Sanjay. And my apologies. I think it got disconnected in between.
Sanjesh Jain
You want me to repeat the question?
Bir Kapoor
No, I remember the question you are asking. All I can say is that the capacity that we have right now. We expect to get fully utilized by 2728. Because this year will be the ramp up growth period for us.
Sanjesh Jain
No, it appears that only LIPF 6 can ramp up this year. Because electrolyte India manufacturing is still little away. Lfp we said few quarters away for all the approval process to get. So probably only Fi28 story. So what we are left in FY27 is only lip F6 salt manufacturing ..
Bir Kapoor
Possibly some electrolyte will also pick up. And the binder as well, which you missed.
Sanjesh Jain
Got it. Got it. No, no.
Bir Kapoor
Because binder is at the final stages. The commercial trials are going on right now in the customer factory. It’s going into the commercial cars right now as we speak. So that will expect in the second half of this financial year the order book to come. Orders to be start. We’ll start shipping up orders for pvdf.
Sanjesh Jain
That’s very clear. Thank you sir. Thank you for patiently answering all those questions. And best of luck for the coming welcome.
Bir Kapoor
Thanks Sanjesh. Thank you.
operator
Thank you sir. Ladies and gentlemen, to ask a question please press star and one now. Participants who wish to ask questions may please press star and one at this time. The next question is from the line of Rohit Nagraj from 361 Capital. Please go ahead.
Rohit Nagraj
Thanks for the opportunity. So first question is again on R32. We believe that the deadline for putting up the project was end of 2026. Nothing in your comment. You said end of 27th. So just want to clarity on this and the light question to that. In terms of market for selling R32, which markets are we looking at? Is it domestic export? And if it is both the markets what kind of mix at optimal utilization that we are looking at. Thank you.
Bir Kapoor
My understanding Rohit is that it’s December 27th. Okay. I’m confirming it internally right now. However, for putting the capacity. Because we already have a quota. Of course. And the second part that you ask is R32. Of course we are looking at it as global. Global market access. Because we are into a very sweet spot with R125 also with us. So we are looking at R32 and R125 combination 410 plus R32 alone. So it’s going to be both global as well as.
Rohit Nagraj
Sure, I got that.
Bir Kapoor
So there are just a clarification that I’ve received, Rohit, that the quota has to be confirmed by end of this year, but the plant can be commissioned in December 27th. That’s the. And we already have quota. So we have. So we can commission the plant by December 27 of the quota that we already have access to.
Rohit Nagraj
Right. And we still consider. We are still considering 30,000 tons as the. Our capacity in a phased manner till December 27th. Right?
Bir Kapoor
Right. Absolutely.
Rohit Nagraj
Sure. The second question is on the fluoropolymers. So I mean I’m slightly flummoxed that nine months back when we started the year we already had the indication that 3M, I mean the comparator is out of the picture by end of 24. And partly that void will be filled up by incumbents. And obviously in anticipation of that, even the customers would have got the validation from the incumbents for their supplies. But today again we are seeing that there has been a slowdown in the fluoropolymers and projections that we were anticipating are not likely to materialize, at least for FY27.
I understand the US part, tariff part attached to it, but again, I think the large part of the market is Europe. So what has changed suddenly in terms of last 3 to 6 months and will it be a feature for FY27 as well or we expect that on this lower base FY27 will be able to pick up momentum and again go back to that 15, 20% volume growth. Thank you.
Bir Kapoor
Yeah, thanks Rohit. Let me give one statement up front that it has not changed significantly. It’s not that we are. Because there are multiple factors which has impacted the few quarters that we looked at. However, the fundamentals remain very strong. And I’ll let Kapil take this and take you through, but it’s not that we are changing the growth pattern here.
Kapil Malhotra
In fact, Rohit, everything remains the way we had talked about. The first thing which I had mentioned just a couple of minutes back was that what happens is that once any existing player is exiting, they have some commitments of six months of one year to the existing customers. So they keep some stocks for them. That’s one. So whatever stocks were kept, they actually, you know, got liquidated a bit slow because there was a market which was picking up slowly at that time. Secondly then the tariff announcements also had confused lot of, you know, customers also.
I’ll give you one very specific example. One of our very good customers in usa he had qualified us to for a particular replacement from the existing income but he was withholding it because his end customer was withholding it to change from. Because there was inventories there. So now that inventories are going off, so the customer is committing that from March or April will start, you know, shifting to us gradually. So this is just one example. So there are a couple of such examples which we have because again remember, you know, don’t forget that these are high performance products going into automobiles, space or other important applications.
The customer also, you know, end customer also then qualifies, gives a clearance sometime the inventory stuck up in between also, you know, creates a bit of a hurdle. So now all those hurdles are over now and also with tariffs also coming down to 18% the customers also at that time were not actually keeping some inventories with them. Whatever inventories were there, they were trying to liquidate as they didn’t want to build up any inventories at higher tariff costs. So now that things are showing up, clarifications are coming. So we expect that the entire momentum will come back again the way we expect it to come.
Rohit Nagraj
That that takes place. Thanks a lot for that elaborate answer. Just one last clarification about the Oman project. So will this be a part of the 6,000 crore capex on the battery materials or is it excluding that?
Bir Kapoor
No, it includes that Rohit. It’s part of that.
Rohit Nagraj
Right. And in terms of timelines I think we were expecting the 6000 crores investment will be over sometimes by FY28. Now with this Oman, will it get spilled over by a few quarters? How is it going?
Bir Kapoor
No, the Oman. The timeline is around 18 months for us to have the plant gets commissioned.
Rohit Nagraj
Okay, sure. Thanks a lot for answering.
Bir Kapoor
So it will probably be mid to end of 27. Yes.
Rohit Nagraj
Thank you sir.
operator
Thank you sir. The next question is from the line of Arun Prasad from Spark Institutional Equities Private Limited. Please go ahead.
Arun Prasath
Thank you for the question. My first question is on ptfe. So within PTFE our understanding is that basic grades and the value added grades. I’m assuming that there will be different buying pattern and different demand. So if you can so but what we are seeing in data is. Correct me if I’m wrong, basic grade seems to be a lot lower this quarter. Is there anything significantly affecting this or is it just a timing difference?
Bir Kapoor
Yes, yes. Arun, could you, could you repeat your.
Kapil Malhotra
Clarify to me, what do you mean by the basic grade so that I can.
Arun Prasath
Suspension grade seems to be at the lower levels in terms of the volume this quarter.
Kapil Malhotra
Suspension grade is not the basic grade. Suspension grade also has lot of high performance grades in between. The base grade probably starts and that’s where we have just 10, 20% of our sale is in that base grade. Rest 80% is into the higher performance grades. So as we had mentioned around last quarter where we had seen that our realizations also had become better and that time we had mentioned that what target we were having of shifting the high towards high performing grades, that process is on. And that’s why we are converting everything to the high performance grades. And that is what is reflecting in our business also.
Arun Prasath
But we don’t see corresponding growth in the volume in the other grades as well. So what. What am I missing? Sir?
Kapil Malhotra
One. One thing which you also mentioned was that we were expecting the anti dumping duty in the domestic market to come. But unfortunately it did not come. It was supposed to actually be through by December or something but ministry did not accept it. Ministry of Finance So in fact we were expecting some volumes to grow and in this quarter also. But that is something where now we’ll have to relocate ourselves at whatever volumes we were reserving for that. We are now trying to find more lucrative market so that we can park our material there.
Arun Prasath
Right? Understood. Is there any limitation in your overall capacity if we say do more of emulsion and less of suspension and are we already there in that level?
Kapil Malhotra
No, we do not have any capacity limitations. In fact we are also doing some demodulating wherever we feel that some of the grades which are giving us better leviticus. So we are adding some kind of small balancing equipments to enhance the capacities to even serve those more volumes better. So as such there is no capacity constraint. But we are doing our balancing of the equipments to see to it that we go to higher value added products.
Arun Prasath
Secondly, on our R22 because we have, we are seeing continuous reduction in the volume that we can place. What are our alternate plans to utilize this excess available say TFE going forward?
Bir Kapoor
Right now I think it’s not an issue because the available TFE we have which is what is required so which we can expand and R22 availability also is there for us. So as far as the backward supply chain for PTFE or fluoropolymers, we do not have any issue. Arun.
Arun Prasath
So everything now depends upon the end market recovery. So till then we need to kind of run at the lower utilization Levels. Understood sir. My second question is on the, on the LFP CapEx announced this 216 million. This is the total CapEx for the, the entire site or is it phase size?
Bir Kapoor
Phase. Right, this is the first phase which we’re doing right now because the site has a very large potential to grow further. This is the first phase of investment.
Arun Prasath
And then what kind of demand this site can meet in terms of sites.
Bir Kapoor
We have not shared the numbers yet in terms of the capacity and the product details which will probably do it in due course. So we are holding on to that information as of now for of course for the obvious reasons of. Because we are now present going to be. This is probably for the global market and we are trying to make sure that, that it should not. We do not lose any competitive advantage by giving some numbers like that.
Arun Prasath
Just make us understand sir, what kind of competitive advantage we have in geographies even versus India. So how competitive in terms of capex pertinent OPEX against say Chinese or other competition in say Europe?
Bir Kapoor
Of course, as we had always said earlier also that, you know, focus of our market of course is the US market and Oman as a location is on a sweet spot because it has a FTA from us and of course we have also signed an FTA with India, Oman has signed FTA with India. So I think from that perspective, I think it has a certain strategic advantage and there are other advantages as well which be difficult for me to share a lot more details but definitely it has a lot more strategic advantage for us to be there.
Arun Prasath
Is a capex competitive to say Chinese plant. That is what I’m trying to understand for the scale that they are putting up there.
Bir Kapoor
Yes, it’s in the same line or.
Arun Prasath
How better we are.
Bir Kapoor
Of course, you know the Chinese capexs are of course right now the most lowest efficient but however it’s, it’s not very far from that. So it’s obviously Oman being a country where we’ll have to bring all the equipment and machinery from outside the capex is expected to be higher but nevertheless when we look at the entire OpEx and CapEx combination, I think it has a strategic advantage for us.
Arun Prasath
Finally, on the LATF6 are we looking to sell mostly in these spot markets? Because now with the LCE price going up, salt prices also seen good traction. So will this be a benefit for us or have we locked much of our capacity or whatever in terms of contractual prices?
Bir Kapoor
I’ll let Rajiv handle that. But just to tell you that lot of the pricings are sort of a formula based pricing. So Rajiv, you want to answer?
Rajiv Rao
Yeah. So Most of our LIPF6 pricing with our customers is based on a formula with lithium carbonate as a reference. So as the lithium carbonate fluctuates, so will an lip of 6% and our margins will be intact. That’s the way we have structured our. Contracts and our customers also like it. So that so they don’t have the volatility of LIPF6 pricing going very high or very low. That’s the way we are operating.
Bir Kapoor
But having said that Arun, the Chinese prices were very low. They were singing. However, we have always said, I said it in earlier calls as well, that our price points of course are very different. We are actually a non PFE supplier which gives us certain advantage not only on accessing customer base but also on the price points.
Arun Prasath
And this margin is also.
operator
May we request you to come back in the follow up question queue?
Arun Prasath
No issues. Thank you.
operator
Thank you.
Bir Kapoor
Thanks Arun. Thank you.
operator
Ladies and gentlemen, in order to ensure that management is able to address questions from all the participants in the conference call, please limit your question to two per participant. The next question is from the line of Archit Doshi from Nuvama. Please go ahead.
Archit Joshi
Good evening sir. Thanks a lot for the opportunity. I’m sorry if I’m being repetitive. Joined the call a bit late but just wanted to get an understanding on all these four elements within the EV product subsidiary and great to see progress over there already. But if I take out for example India or exposure to the Indian geography in terms of revenues or EBITDA in all these four product portfolios, Lips 6, the Cathode Active material, electrolyte and the fluoropolymer binder, how are we faring on the exports front? And let’s say if one has to hazard a guess for F27 or F28X of India, how do we look at scaling up these product portfolios? Any revenue indication that you would like to give or at least on a utilization basis, where would be our aspiration or target to, you know, get into the exports market?
Bir Kapoor
Yeah, I’ll just make one statement and let answer the rest. The first thing is Arshit, that as you said that the strategy that we have to set up this business is to create alternate supply chain globally and this is to cater to the global customer whether they are in us, Europe, India. Having said that, the products that you mentioned, except electrolytes, the remaining three product verticals are all for global market because Indian market is still not ready. So. So the entire Business plan is around that you want to answer?
Rajiv Rao
Yeah. So you know, if we look at our various products for example lipf6 there’s hardly much capacity outside of China and our customer base which is mostly in US and Europe are looking for non PFE suppliers to de risk their supply chain. And this is where we have been able to win customers in all these geographies. Same is the case for LFP cam and binders where the customers are looking to de risk their supply chain. As far as electrolyte is concerned, it will be focusing on Indian markets. Indian market is still to pick up. So as far as customer mix is concerned, as we start in FY27, start off with being heavy on the US and European customer base and over the next year or two we’ll start adding Indian customers through electrolyte business.
Archit Joshi
Right? Sir, that’s exactly the reason why I was focusing on non India markets because Indian the battery capacity, the gigawatt hour capacity is yet to materially come in a big way. And I was trying to understand how should we look at revenues building up in these three portfolios X of electrolyte which will definitely, as you rightly said on the export side, even if you can give any sort of qualitative understanding with regards to any visibility on customers quantities, any revenue numbers that we believe that can be achievable in 27 or F28, that’s what I was largely looking at.
And in the interest of time, if I can just add another question. The initiative in Oman, what were the thought processes in, in venturing into Oman? Is is it the raw material advantage? Is there availability of phosphate or lithium? Is it the capex advantage? I’m sorry if I’ve been repetitive but if you can share your thoughts once again that could be helpful. Thank you. And over to you.
Bir Kapoor
Yeah, thanks please Rajiv.
Rajiv Rao
Yeah. So you know the capacities that we have put up right now, the way I would like to answer your question and we have responded a little bit earlier is going to be utilized. The utilization is going to increase in the coming financial year and by the end of the year, coming financial year our current capacities will get fully utilized by supplying LIPF 6 binders and camp to the US and European market. And as far as electrolyte is concerned that will happen by the business is likely to start by the end of coming financial year.
Does that answer your question?
Archit Joshi
Not really sir, but would we derive a decent amount of revenues at least from this? If even if you don’t want to point out a revenue number, what I would like to understand at least is that we will have some revenues coming into the subsidiary and onwards.
Rajiv Rao
Of course.Yeah. So like we mentioned earlier for binders we are at the final stage of qualification. So by the second half of financial year 27 we expect that business to get going fully for LIPF 6. We already started getting orders in December of 25th and we have got repeat orders for Q4 of FY26 because we have approvals from major electrolyte players, global electrolyte players which serve the US market and therefore are consumers of LIPF 6. So that business has already started and is going to pick up steam right from the beginning of FY27. So there is going to be a revenue stream for salt from the beginning of the financial year.
Binders from the second half of the financial year. And LFP CAM also is going to start somewhere in the second half of financial year 27. So there is going to be an increasing revenue as we go into FY27 and FY28. All our capacities will be fully utilized.
Archit Joshi
Sure sir. So one final bit on the Oman bit. If you can address that question as well, that would be my final one. Thank you and all the best.
Bir Kapoor
Yeah. On Oman front of course there are as I mentioned in earlier question, the certain advantage we have because of the location. Because that geographical location gives a certain advantage in terms of the. You know, supplying from Oman has tariff advantage in certain markets. Also accessing raw materials and. And skill sets in Oman is easier. So it’s lot. So there are definitive advantage of setting up a facility in Oman. That’s the reason. And looking at again at a global market and creating a supply chain which is at a scale which is globally competitive.
Archit Joshi
Sir, any raw material advantage there, availability of phosphate or lithium or there are nearby?
Bir Kapoor
Not at the moment but yes, it’s. It will eventually happen over a period of time because there’s entire ecosystem which is being set up in that. That region and of course energy costs and prices are. We have certain advantage there, you know, with the gas as well as power.
Archit Joshi
Right, right. Sure. Sure. That’s it from me sir. Thank you and all the very best.
operator
Thank you sir. The next question is from the line of Ketan Gandhi from Gandhi Securities. Please go ahead.
Ketan Gandhi
Yeah. Sir, regarding infusion of capital by Oman government. They have invested in the subsidiary of GFCL ev the Oman part and previous all investment happened in GFCL EV India. Is there any valuation difference or this? If you want to share, it’s well and good.
Kapil Malhotra
So both of Both these investments are coming in convertible form where they are linked to the certain milestones on the IPO that way. So there’s no fixed valuation neither for the IFC investment in India nor for the sovereign fund that that is going to invest in the subsidiary in Oman. So they are more like a convertible instrument which will have a fixed return is linked to the certain milestones.
Ketan Gandhi
So okay, but it’s a equity portion only, not the debt.
Kapil Malhotra
It is absolutely an equity with no put or with no put being given by the parent or any other company with no buyback commitment, nothing. It’s the purest form of equity. We wanted to, we wanted to contain the returns. We wanted to just restrict the returns of what they would ultimately make. And that’s the reason why it is a convertible instrument.
Ketan Gandhi
All right, and my another question is. Sir, on slide 7 you have mentioned fluoropolymers binder. Can you please elaborate on that? I mean whether it is PVDF or PTFE binder and whether this cater to the recently technological breakthrough by Tesla in dry process. I’m not telling that we will be supplying to Tesla, but just to understand that this will be of that grade whereby our PTFE binder can be used in the dry process.
Bir Kapoor
Right now the binder which is mentioned and which is at the final stages of qualification is PVDF binder. PTFE binder is also being tested as of now. So we have capability to produce both PTFA as well as pddf. The business will first start. What we have mentioned is from PVDF.
Ketan Gandhi
And sir, after the breakthrough done after five years by Tesla in dry process, if that is being adopted by all the other battery players, is it possible that we may see a shoot up in the demand of the PTFE of that grade and whether we are capable to produce that much grade ptfe?
Bir Kapoor
Yeah, surely. I mean we are capable to produce and that’s where the outlook of fluoropolymer when we give the very strong outlook from multiple sectors. One other factor of course is what you’re mentioning. So we have capability to produce but as you know, because this is a breakthrough now it will by the time it converts into a volume, there’s a process, there’s a timeline for qualifications and great development. So it will happen. Certainly it’s a wonderful opportunity for our PTFE business.
operator
Thank you. Sir. The next question is from the line of Christian from JM Financial. Please go ahead.
Krishan Parwani
Yeah, hi sir, thank you for taking my question. Just two from my side. First the clarification. Did you mention that you will be Able to put up R32 capacity by CY27. N.
Bir Kapoor
He said that Cynthia, the entire capacity that we have quota allocated to us. That’s what we have. So you can not the 20,000 that I had indicated earlier.
Krishan Parwani
Yeah, I mean I was asking like 32 capacities have to come up before CY26 and.
Bir Kapoor
No, we are already started our first phase of R32 capacity which I had mentioned in previous calls. Initial capacity that we are putting up is 20,000 tons. Okay. And then we were supposed to do it by the end of this financial year which got delayed. And then eventually. So what we’ll do is we will commission this capacity very early in this calendar year. And then subsequently the second phase, the capacity will be planned.
Krishan Parwani
The second phase. By that I think you produce close to 90,000
Bir Kapoor
That we have not really indicated any timeline for that. But of course if it has to be done, it will do it prior to December 27 as per the requirement.
Krishan Parwani
That is what I was checking. What is the requirement? Is it has to be the plant is to come up before CY27. Is it? Is that the requirement .
Bir Kapoor
The plant has to come up by CY27. Correct. The quota has to be. But whomever has received quota, that will happen by N26. But the plant capacity cannot come up by 27. So far we already have a quota and.
Krishan Parwani
Go ahead, sir.
Bir Kapoor
Yeah, so that’s what I was saying that we already have. We still have not reached our quota limit by 20,000 tons. So we still have a quota available to us. So we will. In the second phase we will see what all capacity based on the market requirements and other scenarios will take a call. But we have time till December 27 to add capacity.
Krishan Parwani
Okay. And just a last bit on that. This. So you produce close to 19000 tons of R22 during CY910. This is. This is my understanding. Correct me if I’m wrong. 65% on GWP basis translates to close to 32000 tons of R32. So is this the entitlement you intend to use for the phase two which has to come up before CY27?
Bir Kapoor
Yes, that’s indeed one of the numbers. Yes.
Krishan Parwani
Understood. Understood. Understood. Okay, thank you.
operator
Thank you.
Bir Kapoor
Thanks. Thanks Vishen. Thank you.
operator
The next question is from the line of Rohit Nagraj from 361 Capital. Please go ahead.
Rohit Nagraj
Yeah, thanks for the follow up. So under the fluorochemicals vertical we also have the fluoro specialty which goes in for pharma agro applications. We haven’t Heard on this part of the piece since a fairly long time given that we are more focused on the downstream of fluoropolymers as well as the battery chemicals. So is there any revenue contribution coming in and whether the margins are in line with our company wide margins and whether there is any focus on this or probably this will just stay as it is for the time being. Thank you.
Bir Kapoor
As of now, Rohit, we do not have much focus on that particular segment. So we have certain products which are continuing, which we intend to continue of course and those have been picked up based on certain margin expectations. So we are not really investing in that segment as of now because there are so many other opportunities that we have. So we are so far not, not focusing much on that particular segment. But that of course has a revenue contribution which is included in the the vertical that we have shown in our presentation.
Rohit Nagraj
Right, right. And just one last clarification on the IFC fund front. So have we received the funds or will be receiving in the.
Rajiv Rao
You know. The necessary compliance with respect to that. IFC disbursement is all done. There was an AGM which was to be done for the shareholders of EV. Plus other other statutory requirements. They’re all complete. The funding should be done pretty shortly. I mean maybe in a week’s time or so.
Rohit Nagraj
That’s all. Okay. Thanks.
operator
Thank you sir. Ladies and gentlemen, that was the last question for today. I now hand the conference over to management for closing comments.
Bir Kapoor
Thank you so much and let me close this call. Reaffirming our growth plans. Fluoropolymers continue to do well despite some temporary hiccups, be it the US tariff or demand from some of the industries getting pushed forward. Our long term growth and plans are firmly in place for fluoropolymer business. EV business as you see is shaping up very well and we are on track to achieve our guidance there. There’s a huge interest from the customer worldwide and we are emerging as a credible large alternate supply chain partner for most of our customers outside of China. The large global marquee investors participation in GFC EV RE emphasizes the deep value in the segment.
The biggest dent this quarter has been from the refrigerant segment, mainly from the volume and price dip of both R22 and R125. We believe this should recover going forward. Also the value creator for this year going forward in this segment will be R32 sales ramp up which we are expecting to start from quarter three which has now been pushed to quarter four. So with this I would like to thank you all for your interest in JFL and JFCLEV and appreciate you being part of this call. Thank you very much.
operator
Thank you, sir. On behalf of Avendus Parks Institution Equity, that concludes this conference call. Thank you for joining us. And you may now disconnect your lines. Thank you.
Bir Kapoor
Thank you.