Navin Fluorine International Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Navin Fluorine International Ltd trades at ₹8,585, in a confirmed uptrend and 88 weeks into that stage. That is +21.1% against its own 200-day average. It sits at 100% of a 52-week range of ₹5,699 to ₹8,590. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 54 straight weeks.

Today the stock is in a confirmed uptrend — week 88 of stage 2, confirmed. At ₹8,585 it trades +21.1% versus its 200-day average and sits at 100% of its 52-week range (₹5,699–₹8,590).

Against the market, two honest reads. Cumulative: over the last 10.6 years the stock moved +3,082% while the NIFTY 500 moved +268% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 54 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

Navin Fluorine International Ltd's story is not scored yet against the markers our research file set on 22 August 2026. Where it sits in its own cycle: Not stated in the research file. Our fortnightly research layers last read it on 22 August 2026.

Our read, 22 August 2026. Navin Fluorine has transitioned into an operating-leverage expansion phase — delivering FY26 net profit of 664 Cr (+129.8% YoY) and Q1 FY27 net profit of 243 Cr (+107.7% YoY) — with Wave-2 capacity additions commissioning across FY27 onto an absorbed fixed-cost manufacturing platform.

From the numbers. PE decomposition is earnings-driven (per pe_pb_expansion_snapshots record): the multiple is compressing because EPS is growing faster than market price. FII buying (institutional_signal = FII_BUYING) confirms…

From the price. Price stage 2, week 88 — above its 200-day line, relative strength rising.

From the research. Navin Fluorine has transitioned into an operating-leverage expansion phase — delivering FY26 net profit of 664 Cr (+129.8% YoY) and Q1 FY27 net profit of 243 Cr (+107.7% YoY) — with Wave-2 capacity additions…

What is proven. Navin Fluorine has transitioned into an operating-leverage expansion phase — delivering FY26 net profit of 664 Cr (+129.8% YoY) and Q1 FY27 net profit of 243 Cr (+107.7% YoY) — with Wave-2 capacity additions commissioning across FY27 onto an absorbed fixed-cost manufacturing platform.

What is not proven yet. If consolidated operating margin falls below 28% for two consecutive quarters while revenue growth moderates below 10%, indicating that new capacity additions dilute blended profitability rather than generate operating leverage, confirming the peak-margin trap thesis.

🚨 What would change our mind. If consolidated operating margin falls below 28% for two consecutive quarters while revenue growth moderates below 10%, indicating that new capacity additions dilute blended profitability rather than generate operating leverage, confirming the peak-margin trap thesis.

Layer 1 read, 22 August 2026 — KEEP. Plants that were being built are now producing: sales up 44% and margins up 15 points with no help from selling prices. June-quarter revenue reached Rs1,045 Cr with a 34.2% operating margin and profit of Rs243 Cr, more than double a year ago. The reason matters more than the number: gross margin barely moved over ten quarters (a flat 54-59% band, and it actually fell last quarter) while operating margin rose from 18% to 34%, which means the gain came from spreading fixed costs over far more output, not from charging more — and management said the same, attributing 80-90% of it to volume and operating leverage. You can see the plants doing it: capital work-in-progress fell from Rs711 Cr to Rs143 Cr as construction became production and return on capital doubled from 11% to 21%, with three more named, funded…

What would change Layer 1’s mind. The timeline's kill-switch for its main driver is "two or more Wave-2 projects delayed beyond two quarters"; I sharpen it to the margin-side test, because that is what my verdict actually rests on: a September or December 2026 quarter where operating margin falls below 30% WHILE gross margin holds around 57%. That combination would mean the new capacity is diluting margin rather than absorbing overhead — the fixed-cost-absorption mechanism I verified would be broken, the peak-margin trap…

Layer 2 read, 22 August 2026 — ADVANCE. Navin's plants are producing, but industry capacity makes utilization the next decisive test. Q1 revenue, margin and profit rose together, and management says 80-90% of the margin gain came from volume and operating leverage, consistent with CWIP moving into production. Externally, the sector capital block is a real challenge: SUPPLY_FLOOD plus ABSENT institutions creates CAPACITY_RISK, while broad social carries a dated NFIL portfolio-pressure warning. The P1 advances because its own capacity is already delivering and the next ramp has a measurable utilization test, not because the sector risk is absent.

What would change Layer 2’s mind. Flip ADVANCE to DROP if the R32 expansion fails to reach 60% first-year utilization because sector capacity additions force price competition; that would directly break D1's ramp and the capex-inflection case.

Layer 3 read, 22 August 2026 — DEPLOY. Deploy small: plants are earning, but peak margins and R32 oversupply leave little room for error. The June quarter delivered revenue of Rs 1,045 crore, EBITDA of Rs 357 crore and PAT of Rs 243 crore, and management attributes 80%-90% of the margin expansion to volume and fixed-cost absorption. The counterweight is real: the 34.2% margin is a modelled 90th-percentile reading [C009, ⚠ judged context], and Stream 5 says India is expected to remain oversupplied in R32. I therefore keep L2's P1 alive but start at 2.0%, not full size.

What would change Layer 3’s mind. A quarter with operating margin below 30% while gross margin stays stable, or another unexplained two-quarter project delay, would confirm that new capacity is diluting the operating-leverage thesis and flip DEPLOY to BENCH or DROP.

CIO read, 22 August 2026 — BENCH. NOT ADMITTED (incoming, benched) · forward-asymmetry 46/100 · CLEAR_NO_CONTEST. NO CONTEST — I judge deliverable EPS growth at 28%, only 1.1 points above the model's 26.9% requirement. The rating is only partly spent at the 56th percentile, but price has run ahead of EPS and the Chemours project moved back by one quarter.

The test written in advance. If consolidated operating margin falls below 28% for two consecutive quarters while revenue growth moderates below 10%, indicating that new capacity additions dilute blended profitability rather than generate operating leverage, confirming the peak-margin trap thesis. — the thesis as written as stated by the next result.

What the company does. Five years of capital investments totaling over 3,300 Cr have converted Navin Fluorine into an integrated fluorination platform across refrigerants, specialty chemicals, and contract manufacturing. FY26 and Q1 FY27 financial prints validated fixed-cost absorption with operating profit doubling on ~40% top-line expansion. The core valuation tension is operating margin durability at 34% (93rd percentile of 10-year history), which management addressed by upgrading its 1-2 year margin target to 32–33%.

Sources: our stock research file (22 August 2026) · quarterly results through Jun 26 · the company’s own earnings calls. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Navin Fluorine International Ltd reported ₹1,045 Cr of revenue in the Jun 26 quarter, +44.1% year on year. That is the 9th straight quarter of year-on-year growth. Over 10 years it has compounded at 17.2% a year. The last full year, FY26, came in at ₹3,314 Cr. The last four reported quarters add to ₹3,633 Cr.

FY26 revenue came in at ₹3,314 Cr (+41.1% on the year), capping 10 years at 17.2% compound. The latest quarter (Jun 26) printed ₹1,045 Cr, +44.1% year on year — the 9th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +42.8% growth against the decade's 17.2% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +42.4% over the last 4 quarters against +31.6%/yr over the last 8 — accelerating; TTM profit +122.3% vs +74.2%/yr — accelerating.

FY26-Q4. revenue ₹938 Cr and profit ₹213 Cr as reported.

FY27-Q1. revenue ₹1,045 Cr and profit ₹243 Cr as reported.

Why-sources: our stock research file (22 August 2026) and the company’s own results for those quarters.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Navin Fluorine International Ltd's operating margin is 34.0% in the Jun 26 quarter, +5.0 percentage points against the same quarter a year ago. That is the widest this company has ever printed on a full-year basis. Across 13 fiscal years the operating margin has ranged 12.0% to 33.0%. The current quarter is running above every full year in that window.

Why this happened. Management confirmed that 80% to 90% of observed margin expansion is driven by volume scaling and operating leverage. Stable gross margins of 58%–59% indicate disciplined raw material pass-through, enabling management to raise normalized 1–2 year consolidated EBITDA margin guidance to 32–33% +/-1%.

The latest quarter's operating margin is 34.0%, +5.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged 12.0%–33.0%, and FY26's 33.0% is the top of that band — a record year.

Why the margin moved: operating margin went +5.7 pp year on year while gross margin went −0.6 pp — the gain came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

Worth repeating from the valuation section: cheap against its own history on record margins is not the same thing as cheap — a record margin flatters every ratio built on top of it.

FY26-Q4. revenue ₹938 Cr and profit ₹213 Cr as reported.

FY27-Q1. revenue ₹1,045 Cr and profit ₹243 Cr as reported.

Why-sources: our stock research file (22 August 2026) and the company’s own results for those quarters.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Navin Fluorine International Ltd earned ₹243 Cr of net profit in the Jun 26 quarter, +107.7% year on year. It is the 7th consecutive quarter of growth. Full-year FY26 profit was ₹664 Cr. The 10-year compound rate is 23.0%. That is 23.3% of the quarter's revenue. The same quarter a year earlier earned ₹117 Cr.

Jun 26 profit was ₹243 Cr, +107.7% year on year — the 7th consecutive quarter of growth. On the full year, FY26 printed ₹664 Cr (+129.8%), and the 10-year compound rate is 23.0%.

Why profit moved: revenue contributed +44.1% and the margin +5.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +125.7% vs revenue +42.8%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

FY26-Q4. revenue ₹938 Cr and profit ₹213 Cr as reported.

FY27-Q1. revenue ₹1,045 Cr and profit ₹243 Cr as reported.

Why-sources: our stock research file (22 August 2026) and the company’s own results for those quarters.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 181% of Navin Fluorine International Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹894 Cr of operating cash against ₹664 Cr of profit. After ₹525 Cr of capital spending, ₹369 Cr was left as free cash.

FY26: operating cash of ₹894 Cr against reported profit of ₹664 Cr, leaving free cash of ₹369 Cr after ₹525 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 181% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 181%: the cash cycle tightened 80 days between FY21 and FY26 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: the bigger cash user is investment — capital spending ran 5.2× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Navin Fluorine International Ltd's cash conversion cycle runs 60 days in FY26, down from 140 days in FY21. Capital spending ran ₹1,906 Cr over the last 3 years. At FY26 sales of ₹3,314 Cr each day of that cycle holds about ₹9.1 Cr, so roughly ₹545 Cr sits inside the business at any moment.

Why this happened. Three distinct expansion projects sequentially come online in FY27: R32 15,000 MTPA expansion (Q3 FY27), Dahej MPP debottlenecking (Q3 FY27), and Surat Advanced Materials adoption capacity (mid-to-late FY27). These assets add combined peak annual revenue potential exceeding 800 Cr with minimal incremental fixed operating expense.

FY26: debtors at 83 days, inventory at 121 days — roughly 4.0 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 60 days, tighter than FY21's 140.

The full loop: cash goes out to suppliers and production on day 0; stock waits 121 days to sell; customers pay about 83 days after that; and suppliers themselves are paid at 144 days — netting out to the 60-day cycle.

In money terms: at FY26 sales of ₹3,314 Cr, each day of the cycle holds about ₹9.1 Cr — so the 60-day loop keeps roughly ₹545 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹1,906 Cr over the last 3 fiscal years against ₹364 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹143 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Navin Fluorine International Ltd earns a ROCE of 21% in FY26. That is up from a trough of 11% in FY14. Return on invested capital clears the cost of that capital by +9.0 percentage points, so growth here adds value rather than only size. The wiring behind it is 20.0% net margin on 0.52× asset turns.

FY26 ROCE is 21%, recovered from a FY14 trough of 11% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 20.0% net margin × 0.52× asset turns × 1.61× balance-sheet leverage ≈ 16.7% on equity. Margin is doing the heavy lifting; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 21.0% − 12.0% = a +9.0 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Navin Fluorine International Ltd carries total debt of ₹1,275 Cr against shareholder equity of ₹3,975 Cr as of Mar 26, a debt-to-equity of 0.32. On the annual view that ratio went from 0.07 in FY22 to 0.32 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹1,275 Cr against shareholder equity of ₹3,975 Cr — a debt-to-equity of 0.32. On the annual view, debt-to-equity went from 0.07 (FY22) to 0.32 (FY26). Read the returns on this page with that leverage in mind.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Foreign institutions added 5.7 points of Navin Fluorine International Ltd over 8 quarters, the biggest move on the register. That takes foreign institutions to 23.7% of the company. Promoters moved −1.7 points over the same window, to 27.1%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: +5.7 points over 8 quarters to 23.7%; Promoters: −1.7 points over 8 quarters to 27.1%; Domestic institutions: +1.2 points over 8 quarters to 28.5%.

Why the register moved: foreign institutions drove it (+5.7 points), absorbed on the other side by promoters (−1.7 points) — steady accumulation by institutions reading the same numbers this page reads.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Navin Fluorine International Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Navin Fluorine International Ltd trades at 54.2× P/E, mid-range by its own standards (56th percentile). Its long-run median P/E is 50.5×, measured across 10.6 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 54.2× is mid-range by its own standards (56th percentile), against a long-run median of 50.5× measured over 10.6 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +122.5% against a +87.7% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the +17.1%/yr price move, ~+25.4%/yr came from earnings growth and ~−8.3 pp from the multiple (compressing); over 10y, of the +33.6%/yr price move, ~+24.9%/yr came from earnings growth and ~+8.7 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

Solved at its 26 August 2026 price, Navin Fluorine International Ltd was paying for profit growth of about 26.9% a year. Profit itself has compounded 23.0% a year over the past 10 years. Today the market pays 54.2× P/E, the 56th percentile of its own 11-year range.

What the two numbers say together. The multiple is unremarkable against its own past, and the growth the price is paying for is close to what this company has actually delivered.

How to hold this number: it is a reading of one day's price, taken on 26 August 2026, not a running figure — every other number on this page, the multiple included, is read off the live quote as of 28 September 2026. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements.

Stage: Improving Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Navin Fluorine International Ltd reads as improving on its fundamental arc. Improving — profit growth bottomed 7 quarters ago at −29.5% and has held its recovery at +122.3%, ROCE lifting at 21.5%. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: a sustained climb off the trough is the setup this page is built to catch — the question moves to what you pay for it.

4-Factor Sector Score

78.3/100 — rank 1 of 2 in Chemicals Fluorine · 97% evidence confidence

Navin Fluorine International Ltd scores 78.3 out of 100 against the 2 companies it is compared with in Chemicals Fluorine, ranking 1. Confirmed research leader: earnings, capital efficiency and relative strength agree. Move to management, catalyst and risk diligence.

The four contributions add to the total exactly: 35 + 20.1 + 9.9 + 13.3 = 78.3. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Said versus delivered

What Navin Fluorine International Ltd's management promised, set against what actually arrived — 4 tracked promises on the record. Read straight from the company’s own earnings calls. A promise that slipped stays on this page after it is met.

Chemours Completion Timeline Delayed · 5 August 2026. In Feb 2026, management said the Chemours project was on track for completion in Q1 FY27, and in Apr 2026 it narrowed the timing to end June or early July. In Aug 2026, management moved the target to the end of Q2 FY27 without explaining the reason for the one-quarter delay.

CDMO Pipeline Size and Stage Mix Reduced · 5 August 2026. In Feb and Apr 2026, management described an active CDMO pipeline of approximately 50-60 molecules, with roughly half in late-stage or commercial programs. In Aug 2026, management described only 32-40 actively worked molecules and approximately 10 late-stage molecules, without explaining whether the scope or definitions had changed; this materially affects the assessment of future readout and revenue optionality.

Strategic Pivot on Solar Markets · 9 February 2026. Management explicitly stated in the July 2025 call that their strategy was opposed to entering the solar space, citing a desire to avoid commoditized products and focus solely on niche electronic grades. In a clear reversal during the latest call, management stated that solar is now 'part of the journey' and their strategy 'does not exclude solar'. Earlier call (Jul 2025): “Our focus will be mainly in the electronic space as opposed to the solar space. It”. Later call (Feb 2026): “Solar is part of the journey to get to electronics grade. We will get to electronics grade, but it does not exclude solar.”

🚨 AHF Project Commissioning Delay · 9 February 2026. In the July 2025 call, management targeted the AHF project completion for the end of Q2 FY26. This timeline has slipped by two quarters, with the latest call confirming the project was only commissioned during Q4 FY26. Earlier call (Jul 2025): “Meanwhile, our AHF project continues to advance steadily with completion target for the end of Q2 FY”. Later call (Feb 2026): “We are pleased to inform you that the AHF project has been successfully commissioned during Q4 FY26.”

Every quote above is taken word for word from the company’s own earnings calls.

Frequently asked questions