Alufluoride Q1 FY27 Results (NSE: ALUFLUOR)
Signal: Revenue declined
The read
Q1FY27 was a supply-constrained volume shock rather than a unit-economics breakdown: revenue fell 39.3% YoY, but operating margin before other income improved 71bps to 17.1% and gross margin expanded 1,450bps to 59%; the investment case now depends on whether resolved FSA availability converts the newly commissioned 24,000 TPA capacity into volume recovery from Q2, without relying on other income that represented 71.1% of PBT.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹26.57 Cr | -39.3% | N/A |
| EBIT | ₹4.29 Cr | -17.8% | |
| Net profit | ₹2.75 Cr | -11.3% | |
| EPS | ₹3.51 | -11.6% | |
| EBIT margin | 26% |
P&L walk
Revenue fell 39.3% YoY because FSA availability constrained production, but gross margin expanded to 59% from 44.5% as stocked alumina hydrate and contracted pricing protected conversion economics; reported EBITDA declined 8.1% and PAT declined 11.3%, with other income rising to ₹2.36 crore from ₹0.3 crore cushioning the bottom line.
Segments
Aluminium Fluoride operations drove the group slowdown, with revenue falling 40% to ₹26.0 crore versus a 39% consolidated decline, while captive solar revenue fell 28% to ₹0.6 crore and remained immaterial.
Key positives
- Gross margin expanded 1,450bps YoY to 59% as materials declined to 41% of revenue from 55.5%, with favourable FY26 alumina hydrate stocking and contracted pricing cushioning the supply shock.
- Operating margin before other income improved to 17.1% from 16.4% despite revenue falling 39.3%, showing that unit economics held through the volume disruption.
- The final expansion was completed in June 2026, increasing installed capacity to 24,000 TPA, six times the original plant, creating volume headroom if FSA availability normalizes.
- The supplier base widened with Coromandel International supplying from April 2026 alongside the long-term IFFCO Paradeep contract.
- Consolidated EBITDA declined only 8.1% to ₹6.91 crore versus the 39.3% revenue decline, while customer commitments were met throughout the quarter.
Key concerns
- Revenue fell 39.3% YoY to ₹26.57 crore because FSA availability constrained production, demonstrating the earnings sensitivity to a critical raw-material supply chain.
- Other income rose to ₹2.36 crore from ₹0.3 crore and contributed 71.1% of consolidated PBT, so the relatively limited 11.3% PAT decline was not entirely operational.
- The filing expects higher volumes from Q2 after supply normalization, but provides no quantified volume or revenue target against which recovery can be measured.
Earnings quality: includes non-operating other income
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