First real revenue, losses still widening
Battery Materials is now reported as a separate segment inside Gujarat Fluorochemicals (GFL). Q2 FY27 is the first quarter with meaningful sales. The business is still in investment mode: fixed costs from the Jolva complex are running ahead of revenue, so EBITDA and PAT losses grew from last year.
| Battery Materials segment (₹ Cr) | Q2 FY27 | Q2 FY26 | Change |
|---|---|---|---|
| Revenue | 37 | – | New |
| EBITDA | −32 | −23 | Loss up ₹9 Cr |
| PAT | −50 | −30 | Loss up ₹20 Cr |
Source: GFL Q2 FY27 investor presentation, slide 3. GFL's capex footnote says FY26 includes only 4 days of GFCL EV business.
Where each product line stands
GFCL EV calls itself the only global company offering electrolyte salts, formulated electrolytes, cathode and anode active materials, and binders under one roof. Each line is at a different stage, and the order in which they reach commercial sales drives the revenue ramp.
LiPF₆ salt
COMMERCIAL- Sales ramping well, with supplies going to five major global electrolyte players.
- Production is being stepped up progressively, and new plants are being added to meet customer demand.
- Management cites multi-year order visibility.
PVDF & PTFE binders
STARTS Q4 FY27- Multiple grades are at advanced stages of customer qualification for both wet and next-generation dry electrode applications.
- Customer engagement is strongest in the US and Europe.
- Commercial supplies under long-term supply agreements are now expected to begin in Q4 FY27.
LFP cathode (CAM)
QUALIFICATION- Plant samples are going through customer qualification programmes globally, including India.
- The company is now developing higher-end LFP grades.
- Because of strong global demand, further substantial capacity expansions are underway.
Electrolyte formulations
SAMPLING- Engagement is progressing with domestic cell manufacturers across EV and BESS applications.
- Customer-specific formulations are being supplied from the commercial plant for evaluation and qualification.
- Management expects domestic electrolyte demand to pick up towards the end of next financial year (FY28).
NGAAM (natural graphite anode)
ON HOLD- Concall highlight
The presentation still lists the anode facility as being set up. On the Q2 call, however, management said the anode plant is on hold and comes last in priority, behind every other product. - All initial Phase I capacity has been commissioned and is contracted with anchor clients for every product.
EV capex is planned to nearly triple in FY27
Planned FY27 capex for GFCL EV is ₹2,300 Cr, about 2.9× FY26 and nearly three times what the rest of GFL plans to spend (₹800 Cr). The FY24–FY27(P) EV total shown on the slide is ₹4,275 Cr, against a stated target of ₹6,000 Cr of total capex by FY28.
Concall highlight
Update from the concall: management put FY27 battery capex at about ₹2,100 Cr and said it is running roughly 1.5 quarters behind because Oman was put on hold and its capacity is being moved to India. The balance of the ₹6,000 Cr plan now spills into FY28.
Capex split, ₹ Cr (GFL slide 13)
The math behind the target
Management targets ₹6,000 Cr of capex by FY28 at 2× asset turnover and a 25%+ EBITDA margin. At full ramp, that implies a revenue potential of about ₹12,000 Cr a year and EBITDA of ₹3,000 Cr+. Q2 FY27's ₹37 Cr is roughly ₹148 Cr annualised, so the business is only at the start of that curve. (The implied figures are UnlistedZone calculations from company targets, not company guidance.)
Every GWh of cells pulls in a fixed amount of material
The company published indicative material intensity per GWh for the first time. It ties GFCL EV's volumes directly to cell capacity coming up in India and abroad.
| Material | NMC cell / GWh | LFP cell / GWh | 10 GWh LFP plant* |
|---|---|---|---|
| LiPF₆ salt | 70 MT | 150 MT | 1,500 MT |
| Formulated electrolyte | 600 MT | 1,200 MT | 12,000 MT |
| LFP cathode (CAM) | – | ~2,000 MT | ~20,000 MT |
| PVDF binder | ~40 MT | ~400 MT | |
| NGAAM (if ~20% of AAM) | ~200 MT | ~2,000 MT | |
Per-GWh figures from GFL slide 24. *The 10 GWh column is an UnlistedZone illustration based on those figures.
Share of LFP cell cost (slide 25)
Green = segments GFCL EV covers. The company says its portfolio covers about 70% of LFP cell cost. *Others include Al and Cu foil.
Ex-China Li-ion cell demand (slide 25)
The company expects LFP to stay the dominant chemistry in mass-market EVs and storage. It points to AI and data-centre power demand as a driver for BESS.
Concall highlights: what management said
The presentation gives the headline status. The Q1 and Q2 FY27 calls added the timelines and the Oman change.
Capacity timeline
Current capacity is small and mainly used for grade development and qualification. Significant capacity, including large LFP lines, arrives around Q3 FY28. Salt capacity should be close to full utilisation by Q1–Q2 FY28. Backward integration into iron phosphate comes after the large LFP capacity.
LiPF₆ pricing
LiPF₆ prices in China fell from about 1,50,000 to about 1,00,000 yuan, which management attributes to lithium deflation. Most volume is on volume-binding contracts with lithium-linked pricing, which are generally annual or longer and include pass-through. There is very little spot business.
Electrolyte in India
GFCL EV is working with all three Indian cell makers currently at production scale, across EV and BESS. Samples are at an early evaluation stage, and revenue is expected from H2 FY28.
Dry electrode is a PTFE upside
Several PTFE grades are in advanced trials for dry-electrode cathodes, which management called a big upside for the PTFE business. FY28 battery revenue is expected to be mostly export-led, with domestic sales building as India ramps up.
Sources: Q1 FY27 concall transcript (NSE, filed 19 Aug 2026); Q2 FY27 earnings call highlights (GuruFocus/Investing.com).
Recent developments around GFCL EV
Funding: ~₹2,300 Cr equity raised so far
According to the Q2 FY27 call:
- Equity raised: ~₹2,300 Cr, from IFC (~₹400 Cr), other investors (~₹1,000 Cr) and GFL (~₹800 Cr).
- Debt raised: ₹900 Cr from Sumitomo and ICICI.
- Target: ₹3,500 Cr of equity in total, with ~₹1,200 Cr more over 18–24 months, and ₹1,500 Cr of debt.
- In talks: a further ₹500–700 Cr tranche with sovereign and climate funds.
IFC's preference shares convert at a qualified IPO or another liquidity event.
Q2 FY27 earnings call (as reported by GuruFocus/Investing.com); IFC disclosure #50622Oman project on hold, capacity moving to India
The ~$216 Mn Salalah plant announced in February 2026 has been put on hold. CEO Dr. Bir Kapoor cited geopolitical reasons for project delays and a better policy environment in India. The first phase will use land at the existing Jolva (Dahej B) site, and a second Dahej-area site is being added. The roughly ₹1,200 Cr of funding approved for Oman was specific to that project and will not be available for India, so separate funding is being arranged.
Q1 FY27 concall transcript (filed 19 Aug 2026); reiterated on Q2 FY27 callProposed capital subsidy for battery components
The Ministry of Heavy Industries is weighing capital subsidies of up to 50%, or a mix of 25% capex support with 5–18% sales-linked incentives, tied to domestic value addition. GFCL EV's backward integration could help it meet those thresholds. The scheme is still at the proposal stage.
Economic Times, Nov 2026Indian cell capacity is coming online
Exide Energy Solutions commissioned a 6 GWh lithium-ion cell gigafactory in Bengaluru in September 2026 and is sampling NMC and LFP cells. Plants like this are the domestic customers management is pointing to for electrolyte demand from late FY28.
Exide Industries Q2 FY27 updateMilestones and risks
Milestones to watch
- Whether PVDF/PTFE LTSA supplies start on time in Q4 FY27.
- Commissioning of the new LiPF₆ plants and quarterly revenue growth beyond ₹37 Cr.
- Large LFP capacity in India by ~Q3 FY28, after the shift from Oman.
- Closing the remaining ~₹1,200 Cr of equity, replacing the Oman-specific funding.
- The first LFP qualification win with a named customer.
- Domestic electrolyte orders as Indian gigafactories ramp up.
- Segment EBITDA turning positive as utilisation improves.
- Final notification of the government's battery component scheme.
Risks
- Losses are widening (PAT −₹50 Cr) while capex jumps to ₹2,300 Cr. Payback depends on hitting the 2× asset-turn target.
- Qualification timelines for LFP and electrolyte are customer-driven and can slip.
- Chinese pricing pressure: Indian component costs are estimated at 18–61% above landed Chinese prices.
- Slow Indian cell ramp-up: domestic electrolyte demand isn't expected until late FY28.
- Lithium price swings affect LiPF₆ and LFP realisations. China LiPF₆ prices have already fallen about a third.
- Capex delay: the programme is running about 1.5 quarters behind, and the Oman-linked funding is no longer available.
How GFCL EV fits inside its listed parent, GFL
GFCL EV Products is an unlisted subsidiary of Gujarat Fluorochemicals Ltd (GFL, NSE: FLUOROCHEM). GFL's consolidated numbers combine its own chemicals business with GFCL EV's battery business. The table shows how the two add up, so GFL's group numbers should not be read as GFCL EV's.
| Q2 FY27 (₹ Cr) | GFL chemicals | GFCL EV | GFL total |
|---|---|---|---|
| Revenue | 1,723 | 37 | 1,760 |
| EBITDA | 505 | −32 | 473 |
| PAT | 290 | −50 | 240 |
The highlighted column is GFCL EV (battery). "GFL total" is GFL's consolidated figure. GFL's chemicals profit is currently absorbing the battery losses. Segment EBITDA may not add up exactly to the consolidated figure because of unallocated items. Source: GFL Q2 FY27 presentation, slide 3.