Navin Fluorine shares surged 14% on Thursday to a record ₹8,648 after two domestic brokerages lifted price targets on the back of a June quarter that doubled net profit year on year.

The numbers that moved the needle

Consolidated net profit came in at ₹243.31 crore for the quarter ended June, up 108% from ₹117.16 crore a year earlier and 14.4% from ₹213 crore in the March quarter. Revenue from operations rose to ₹1,045 crore, a 44.1% increase from ₹725.40 crore in the year-ago period and 11.5% higher sequentially from ₹937.71 crore. EBITDA climbed 72% year on year to ₹357 crore from ₹207 crore, pushing the margin to 34.2%, a 566-basis-point expansion from a year ago though flat quarter on quarter.

Broker views and the capacity story

Axis Securities raised its target to ₹8,600 from ₹8,000 while keeping a Buy rating, citing a robust pipeline and the upcoming commissioning of new HFC capacity, MPP de-bottlenecking and the Chemours liquid cooling project. JM Financial lifted its target to ₹9,000 from ₹8,200, also maintaining Buy, and raised FY27 and FY28 EPS estimates by 13% and 5% respectively while introducing FY29 estimates. The brokerage pointed to the ramp-up of 15,000 MTPA of additional R-32 capacity, the AHF facility, a ₹125-crore cGMP-4 Phase II expansion for an existing European CDMO customer, and a pipeline comprising one additional molecule with that customer plus three molecules in the FDA stage.

What the margin guidance actually says

Management has guided for a sustainable operating EBITDA margin of 30% to 33% (±1%) over the next one to two years, driven by operating leverage from the new assets. The June quarter printed at 34.2%, above that range, though the company and brokers frame the guide as a through-cycle floor rather than a ceiling.

The next data points to watch

The CDMO segment grew 82% year on year to ₹180 crore and remains the primary growth engine. High-Performance Products rose 33% to ₹540 crore on volume and realisation gains, while Speciality Chemicals added 48% to ₹325 crore. Investors will track the pace of capacity commissioning, the conversion of the FDA-stage molecules into revenue, and whether the margin guide holds as the new assets come online.