Navin Fluorine shares hit record high after Q3 PAT jumps 122%; what investors should do

Shares of Navin Fluorine International rallied as much as 5.56 per cent to hit a record high of Rs 6,965 on the NSE on Tuesday, February 10, after the company reported a strong set of December-quarter results. Sharp margin expansion, robust segment-wise growth, and healthy forward visibility lifted investor sentiment.

The stock extended recent gains as the market reacted to better-than-expected operating performance and improving utilisation across new capacities.

Q3 earnings show sharp improvement

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Navin Fluorine reported a net profit of Rs 185.40 crore for the quarter ended December 31, 2026 (Q3 FY26). This marked a 122 per cent jump from Rs 83.60 crore in the year-ago period.

Revenue from operations rose 47 per cent year-on-year to Rs 892.37 crore, compared with Rs 606.20 crore in Q3 FY25. The strong top-line growth was supported by higher volumes, improved pricing, and a richer product mix.

Operating EBITDA more than doubled to Rs 307.57 crore, up 109 per cent from Rs 147.31 crore a year ago. Operating EBITDA margin expanded sharply by 1,017 basis points to 34.5 per cent from 24.3 per cent, reflecting operating leverage and higher gross margins.

All business segments deliver growth

Growth was broad-based across business verticals.

The high-performance products (HPP) segment reported revenue growth of 35 per cent. Management said this was driven by better realisations and higher volumes. The specialty chemicals segment saw a sharp 60 per cent rise in revenue and delivered its highest-ever quarterly performance, supported by strong demand and order visibility.

The contract development and manufacturing organisation (CDMO) business also reported 60 per cent year-on-year revenue growth. The segment continued to benefit from long-term contracts and improved execution.

Capacity additions and capex update

Navin Fluorine said the AHF capex project was commissioned in Q4 FY26, with dispatches already underway. The company is also progressing with capex for additional HFC capacity of up to 15,000 MTPA.

The R32 project, with a planned capacity of 15,000 MTPA, remains on track for commissioning in Q3 FY27. Management said these projects are expected to support medium-term growth as utilisation ramps up.

In the specialty chemicals segment, the Chemours project is progressing as planned and is expected to be completed in Q1 FY27. Debottlenecking of multi-purpose plant capacity at Dahej is also on track for commissioning in Q3 FY27.

CDMO outlook remains healthy

The CDMO business maintained strong momentum during the quarter. Under the European CDMO master service agreement, validation was completed successfully and commercial supplies have commenced from the cGMP4 facility.

Management indicated a strong outlook for the CDMO segment into calendar year 2026 and beyond, supported by a balanced portfolio of early- and late-stage molecules and ongoing discussions with European clients for future orders.

What brokerages say

Brokerages raised target prices following the strong results, though views on valuation remain mixed.

Citi maintained a sell rating and raised its target price to Rs 5,550 from Rs 4,900. It noted that EBITDA rose 110 per cent year-on-year and margins improved sharply, but said the stock’s recent rally and valuation of about 29 times FY27E EV/EBITDA leaves limited upside.

Jefferies maintained a buy rating and raised its target to Rs 7,800 from Rs 6,940. It cited a strong earnings beat, firm CDMO contracts, and ramp-up in R32 and data centre cooling products, and projected a 23 per cent EPS CAGR over FY26–28.

UBS also maintained a buy rating and raised its target to Rs 7,800 from Rs 7,000. The brokerage expects Q4 momentum to remain strong and sees FY26 margins trending above the guided 30 per cent level on higher utilisation.