Stallion India Expanding Footprint Elevates Profitability

Ashwin Thakker

— 2 min read

Key Facts on Outlook:

  • Targeting 30-35% annual sales growth over the next three years.
  • Anticipating a rise in average PAT margins to 17-18%, up from current 9-11%.
  • Launching a new 10,000-ton R-32 manufacturing plant in Rajasthan by mid-2026, projected to add significant revenue.
  • Khalapur and Mambattu facilities, focusing on specialty and HFO gases, expected to be operational by November end.
  • Projected long-term revenue target to exceed INR 2,500 crore.

Stallion India Fluorochemicals Limited (SIFL) started Q1 FY26 strongly, reporting robust revenue growth of over 50% year-on-year. Despite a typically softer quarter, the company unveiled ambitious forward-looking guidance, signaling a transformative phase driven by strategic capacity expansion and a keen focus on high-margin products. SIFL aims for significant sales growth and enhanced profitability.

Driving Growth Through Greenfield and Backward Integration

Stallion India is undertaking significant expansion to fuel future growth. A key initiative is the new 10,000-ton R-32 refrigerant gas manufacturing plant in Bhilwara, Rajasthan, an investment exceeding INR 200 crore. Expected by mid-2026, this facility aims to reduce import dependency and serve both domestic and export markets. It's projected to add INR 135 crore revenue in its first year and INR 270 crore in the second. Management targets 30-35% annual sales growth over the next three years, with a long-term vision to exceed INR 2,500 crore in total revenue. This strategic move into direct molecule manufacturing will position Stallion India as a fully backward and forward-integrated player, enhancing supply chain security and stability.

"We are confident of maintaining our target at 30-35% growth over the next three years."

Boosting Profitability and Tapping Emerging Markets

The company anticipates a significant boost in profitability driven by these strategic expansions. Overall PAT margins are projected to rise from the current 9-11% to an average of 17-18%, with manufacturing operations specifically targeting over 24% PAT. EBITDA margins are also expected to climb significantly, potentially reaching 30%. Beyond R-32, Stallion India is enhancing its Khalapur and Mambattu facilities, focusing on specialty and HFO gases. These facilities, expected to be operational by November end, will cater to high-growth sectors like semiconductors, solar, fiber optics, and advanced cooling applications, which are projected to grow at strong double-digit CAGRs. Stallion India highlights its first-mover advantage in HFOs due to patent ownership, reinforcing its competitive edge in these emerging markets.

Stallion India's Q1 FY26 earnings call highlighted a clear, ambitious roadmap for growth. With strategic investments in new manufacturing facilities and expansions, the company is set to significantly increase revenue, enhance profitability, and reduce import dependency. Its focus on high-margin specialty gases and backward integration positions it for sustained leadership in the fluorochemicals market through 2029.

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