1. At a Glance – Blink and You’ll Miss It
Alufluoride Ltd is that quiet chemistry topper sitting in the last bench who suddenly scores full marks in Q3 FY26 and shocks the entire class. With a market cap of ~₹333 Cr, a current price of ₹426, and a Q3 revenue of ₹58.6 Cr (+23% YoY), this niche chemical player has been steadily minting cash while staying under the radar. Q3 FY26 net profit clocked ₹9.44 Cr, up 51% YoY, with EPS of ₹12.07 in a single quarter. That’s not a typo.
Return ratios are flexing hard — ROCE ~23.6%, ROE ~20.8%, debt is polite at D/E ~0.29, and interest coverage sits at a comfortable ~14x. Dividend yield? A modest 0.7%, because this company prefers reinvesting in chemistry rather than throwing laddoos every year.
Three-month returns are flat, one-year returns are negative, and five-year CAGR is boring — which is exactly why the fundamentals crowd is slowly sneaking in. Question is: is the market late, or is it just warming up the Bunsen burner?
2. Introduction – A Chemical Company That Actually Understands Chemistry
Founded in 1984, Alufluoride Ltd is India’s largest producer of Low Bulk Density Aluminium Fluoride (AlF₃) — a chemical that aluminium smelters cannot live without. If aluminium is the body, Aluminium Fluoride is the electrolyte blood. No AlF₃, no smelting party.
Unlike flashy specialty chemical companies promising AI-driven molecules and space-age polymers, Alufluoride sticks to one job and does it disgustingly well. Aluminium Fluoride contributes ~97% of FY24 revenue, with the remaining income coming from non-operating bits like interest. No diversification drama, no “pilot project in EV chemicals with zero revenue.” Just aluminium fluoride, volume growth, margin discipline, and long-term client relationships.
The company hit record production and sales of ~15,000 MT in FY24, matching its installed capacity after Phase-2 expansion. That tells you demand
is not theoretical PowerPoint demand — it’s actual trucks moving out of the plant.
Now here’s the fun part: despite being a critical supplier to giants like Hindalco, Nalco, Vedanta, and global aluminium producers, Alufluoride is valued like a side character. Is this neglect… or opportunity?
3. Business Model – WTF Do They Even Do?
Let’s dumb it down without insulting your intelligence.
Alufluoride produces Aluminium Fluoride (AlF₃), which is used in aluminium smelting to reduce melting temperature and improve energy efficiency. Every aluminium smelter needs it. Every day. No substitutes. No jugaad.
The company also produces Calcium Fluoride and Silica, but let’s not kid ourselves — these are side dishes. The main course is AlF₃.
Supply Chain Mojo:
Earlier, the company depended heavily on acid supplies from Coromandel International, which… let’s say didn’t always show up on time. Management responded like grown-ups:
- Secured long-term acid supply contracts with
- Coromandel International (~3,500 TPA)
- IFFCO Paradeep (7,000+ TPA)
- Paradeep Phosphates (~2,500 TPA)
This unlocked Phase-2 expansion, taking capacity from 12,000 TPA to 15,000 TPA, which is now fully utilized.
Clients:
Domestic aluminium giants + global aluminium majors. Once you qualify as a supplier here, switching costs are high. Smelters don’t experiment with electrolytes like YouTube recipes.
So the business model is simple: secure
