Navin Fluorine: Should You Buy, Sell, or Hold This Chemical Stock after Q3 Results?

Synopsis: Navin Fluorine International Ltd rose 5% after Q3 results, with revenue up 47% YoY to ₹892 crore and net profit up 121% YoY to ₹185 crore, along with brokerage views on the results and operations.

The shares of the Mid-Cap company specializing in the development, manufacturing, and sale of specialized fluorochemicals are in focus following their Q3 results, and let’s also see the analyst’s views post their result.

With a market capitalization of Rs. 33,435.39 Crores on the Day’s Trade, the shares of Navin Fluorine International Ltd rose by 5.4 percent, reaching a high of Rs. 6960.00 compared to its previous close of Rs. 6602.35.

What Happened

Navin Fluorine International Ltd, engaged in the development, manufacturing, and sale of specialized fluorochemicals, is in the spotlight today as it has announced its Q3 results as follows:

Its Revenue from operations rose by 47 percent YoY from Rs. 606 Crores in Q3FY25 to Rs. 892 Crores in Q3FY26, and it rose by 18 percent QoQ from Rs. 758 Crores in Q2FY26 to Rs. 892  Crores in Q3FY26.

Its Net Profit YoY rose by 121 percent from Rs. 83.6 Crores in Q3FY25 to Rs. 185 Crores in Q3FY26, and on a QoQ basis, it rose by 25 percent from Rs. 148 Crores in Q2FY26 to Rs. 185 Crores in Q3FY26. The earnings per share (EPS) for the quarterly period stood at Rs. 36.18, compared to Rs. 28.06  in the previous year’s quarter.

Brokerage Views on the company

Jefferies maintains a Buy rating on Navin Fluorine by increasing the target price from Rs 6940 to Rs. 7800, with an upside potential of 18 percent from the day’s close. 

Jefferies expects a strong performance expected with robust order flow and contract wins in CDMO, and the Growth is supported by a ramp-up in data center cooling products and R32 capacity, providing clear visibility. Furthermore, FY27/28E EPS upgraded by 9%/7%, projecting a 23% EPS CAGR over FY26‑28E.

Citi maintains a Sell rating on Navin Fluorine by increasing the target price from Rs 4900 to Rs. 5550, with a downside potential of 16 percent from the day’s close.  Citi expects that Q3 results beat expectations, though valuation likely limits further upside. EBITDA margin expansion is driven by higher gross margins and operating leverage, and with the stock up 57% in the past year, most of the upside seems already priced in.

HPP reported strong growth in Q3 FY26, with revenue rising to Rs. 412 crore from Rs. 306 crore in Q3 FY25, marking a 35% increase. The business continues to maintain a balanced geographic presence, with 47% of revenue coming from India and 53% from international markets.

The Speciality Chemicals segment saw an impressive 60% jump in revenue, reaching Rs. 354 crore in Q3 FY26 compared to Rs. 221 crore in the same quarter last year. International markets continue to drive growth, contributing 77% of the segment’s revenue, while India accounted for 23%.

CDMO also delivered robust performance, with revenue increasing 61% to Rs. 127 crore in Q3 FY26 from Rs. 79 crore in Q3 FY25. Unlike other segments, CDMO remains predominantly India-focused, generating 94% of its revenue domestically and only 6% 

Navin Fluorine International Ltd (NFIL), established in 1967 and part of the Padmanabh Mafatlal Group, is a leading Indian manufacturer of specialty fluorochemicals. The company produces refrigerants, inorganic fluorides, specialty organofluorines, and provides contract research and manufacturing services (CRAMS) for global agrochemical, pharmaceutical, and chemical industries. 

The company demonstrates solid financial performance with a Return on Capital Employed (ROCE) of 11.7% and a Return on Equity (ROE) of 11.5%, indicating efficient use of both capital and shareholder funds. Its debt-to-equity ratio of 0.33 reflects a conservative capital structure, suggesting low financial risk while maintaining growth potential.

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