1. At a Glance
Welcome to the comedy-drama calledGFL Ltd, where the hero used to be a chemical mogul and is now an investment distributor pretending to be Warren Buffett on a diet. With amarket cap of ₹660 crore, acurrent price of ₹60, and abook value of ₹230, this stock screams “undervalued”—until you see theROE of -2.96%and realize it’s undervalued for a reason.
Once upon a time, GFL (Gujarat Fluorochemicals Ltd’s daddy before the 2020 demerger) made chemicals and cash. Now it holds investments in associates, collects brokerage fees, and files quarterlies that look like math errors. ForQ2 FY26, the company reportedsales of ₹0.92 crore,PAT of ₹14.6 crore, and anEPS of ₹1.33, which sounds good until you remember that revenue was less than a Mumbai 2BHK’s down payment.
Debt-free? Yes.Profitable? Technically.Consistent? About as consistent as Indian train Wi-Fi.
If you love companies that confuse Excel sheets and financial logic equally—buckle up. This one’s pure entertainment.
2. Introduction
GFL Ltd has the vibe of that rich uncle who sold his family business, now spends his time “managing investments,” and gives unsolicited financial advice at weddings. Incorporated as part of the grand INOXGFL empire, this company once manufactured chemicals and refrigerants, before deciding in FY20 to demerge the hard work away into a new entity—Gujarat Fluorochemicals Limited—while keeping the “holding company” tag for itself.
So, today, GFL doesn’t make chemicals; it makesbalance sheetsconfusing. It holds stakes, distributes investment products, and collects returns from subsidiaries likeGFCL EV Products(which builds EV and battery materials) andGFCL-SGHP, which sounds like a pharma brand but is into solar and hydrogen fuel cells. Basically, the kids do the work, and daddy GFL just cashes the dividends—whenever they exist.
Over the years, GFL’s revenue crashed from₹3,431 crore in FY14to just₹3.5 crore in FY25—a staggering -99.9% fall in actual operations. Yet, somehow, it managed aPAT of ₹14.6 crore this quarterthanks to investment gains. That’s not performance—it’s portfolio luck.
The INOX Group can still boast fancy ISO certifications and a fluorochemical empire, but GFL itself is now the “distribution and investment” arm—a polite way to say “a legal entity that lives off dividends.”
3. Business Model – WTF Do They Even Do?
Let’s simplify it:GFL Ltd is aholding and investment distribution company. It doesn’t manufacture, it doesn’t trade goods—it holds stakes, earns brokerage, and manages a collection of subsidiaries. Think of it as a family WhatsApp admin who doesn’t say much but still controls the group.
Its revenue sources (FY23):
- Brokerage income – 75%
- Investment gains – 18%
- Other income/loss – 7%
The company also plays the distributor for investment products—think mutual funds, corporate deposits, and bonds. But the real action is in its subsidiaries:
- Gujarat Fluorochemicals Ltd (GFCL): The demerged chemical arm, producing PTFE, PVDF, and other fancy polymers used in EV batteries and semiconductors.
- GFCL EV Products: Makes battery materials—electrolytes, binders, and cathode active materials.
- GFCL-SGHP: Works on solar and hydrogen fuel technologies.
Meanwhile, GFL itself mainlyholdsthese investments. So if you’re wondering how a ₹660 crore company with ₹3 crore revenue still makes ₹15 crore quarterly profit—the answer is “mark-to-market magic.”
In summary, GFL is the INOX family’s financial shell that holds the jewels. But since it’s publicly listed, small investors get to witness an existential crisis every quarter.
4. Financials Overview
| Metric | Latest Qtr (Sep FY26) | Same Qtr Last Yr (Sep FY25) | Previous Qtr (Jun FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 0.92 | 0.85 | 0.88 | 8.24% | 4.5% |
| EBITDA (₹ Cr) | 1.0 | -3.0 | -0.7 | 133% | 242% |
| PAT (₹ Cr) | 14.6 | 6.0 | -8.0 | 141% | Turned Positive |
| EPS (₹) | 1.33 | 0.55 | -0.74 | 142% | Swing to profit |
Commentary:Revenue is smaller than most people’s electricity bill, but PAT skyrocketed due to “other income”—the Indian euphemism for“we sold something somewhere and it worked out.”EBITDA positive, EPS revived, and cash intact. But sustainability? That’s a word GFL last saw in FY14.
5. Valuation Discussion – Fair Value Range Only
Let’s play valuation gymnastics using three
methods.
a) P/E Method:Annualized EPS = ₹1.33 × 4 = ₹5.32Industry P/E = ~20→ Theoretical Value = ₹5.32 × 20 = ₹106.4
b) EV/EBITDA Method:EV = ₹659 crore, EBITDA (annualized) ≈ ₹4 croreEV/EBITDA = 164x (ouch)Fair range for a holding company: 10–15x→ Fair Value Range ≈ ₹40–₹60
c) DCF (Assuming ₹15 crore annual cash flow, 6% growth, 11% discount):Intrinsic Value ≈ ₹55–₹70
📘Educational Fair Value Range: ₹50–₹100 per shareThis fair value range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
The latest act opened on11 November 2025, when GFL announcedunaudited Q2/H1 FY26 results—a mild ₹14.6 crore profit, which sounds grand until you remember they had ₹0.92 crore in revenue.
The company clarified to exchanges inOctober 2025that there wasno undisclosed informationbehind its wild stock price swings. Translation: “We’re just vibing with the market.”
Key personnel shuffle: In FY23,CFO Mukesh Patniresigned, replaced byMr. Dhiren Asher. That’s corporate for “someone had to take the Excel blame.”
And let’s not forget the blockbusterINOX Leisure–PVR mergerin February 2023—though it was GFL’s subsidiary, not GFL itself, that merged. But markets love mixing cousins.
In essence, GFL’s drama is more financial theatre than business expansion. The only trigger is the performance of Gujarat Fluorochemicals and its EV spinoff, because daddy GFL’s own revenue stream looks like an empty soda can.
7. Balance Sheet
| (₹ Cr) | Mar FY23 | Mar FY24 | Sep FY25 |
|---|---|---|---|
| Total Assets | 2,741 | 2,732 | 2,693 |
| Net Worth (Equity + Reserves) | 2,602 | 2,594 | 2,527 |
| Borrowings | 0 | 0 | 0 |
| Other Liabilities | 139 | 138 | 166 |
| Total Liabilities | 2,741 | 2,732 | 2,693 |
Commentary:
- No debt. The company’s balance sheet is cleaner than a temple floor before Diwali.
- Assets are mostly investments—no factories, no production lines, just numbers.
- Reserves fell slightly, proving even holding companies can have bad luck with Excel formulas.
8. Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating Cash Flow | 402.17 | 0.36 | 0.50 |
| Investing Cash Flow | -240.93 | -0.10 | -0.96 |
| Financing Cash Flow | -184.41 | 0.00 | 0.00 |
Verdict:Operating cash flow went from ₹400 crore
