Global Markets
Home›Global Markets›North America›Navin Fluorine eyes R32 capacity boost and expects CDM…
Navin Fluorine eyes R32 capacity boost and expects CDMO sales growth
The company plans to commission up to 15,000 tonnes of R32 capacity in Q3FY27 and target $100 million in CDMO revenue for FY27.
Navin Fluorine International is laying out a new growth cycle driven by added R32 refrigerant capacity and a scaling contract development and manufacturing organization, or CDMO, business, according to LiveMint Markets. The stock has risen 38% so far in 2026, and the investment case centers on converting that momentum into sustained earnings growth.
For FY26, the company reported revenue growth of 41% year on year to ₹ 3,314 crore, with EBITDA margin around 33%, versus 23% in FY25. In Q1FY27, revenue rose 44% year on year to ₹ 1,045 crore and EBITDA margin improved to 34%, supported by higher capacity utilization, improved realizations, and product mix.
In its high performance products, or HPP, segment, Q1FY27 revenue grew 33% and contributed almost 52% of total revenue, with R32 identified as the next major lever. Navin plans to add hydrofluorocarbon capacity of up to 15,000 tonnes of R32 to be commissioned in Q3FY27, and management indicated a peak annual revenue potential of ₹ 600-825 crore from the additional R32 capacity.
On the CDMO side, CDMO revenue in Q1FY27 increased 82% year on year to ₹ 180 crore. Management expects CDMO revenue to reach $100 million in FY27 supported by deeper relationships with pharmaceutical customers, while the article also notes Nuvama Research expects CDMO revenues to rise 74% in FY27. Navin is planning to invest ₹ 700 crore in FY27, with capex of ₹ 700-1,000 crore annually over the next 2-3 years across HPP and CDMO.