GFCL EV Products Unlisted Shares

About GFCL EV Products Unlisted Shares

GFCL EV Products Limited, a 100% subsidiary of Gujarat Fluorochemicals Limited (GFL), was incorporated on 11th June 2021 to become a globally competitive supplier of battery materials for Electric Vehicles (EVs) and Energy Storage Systems (ESS). Positioned as a key player in India’s energy transition, the company aims to cover over 50% of the Li-ion battery value chain, with a focus on backward integration to reduce China-dependency.

Business Division

Core Offerings:

• Cathode Active Materials (CAM): Primarily Lithium Iron Phosphate (LFP)
• Electrolytes: Includes salts, additives, and formulations
• Binders: PVDF and PTFE grades

Geographic Focus: India, USA, and EU
Target Customers: EV OEMs & Battery Manufacturers (20+ potential clients in pipeline)
Production Facility: Jolva, Gujarat with support from Dahej & Ranjitnagar

Key Financial Pointers

• Revenue jumped to ₹37 Cr in FY24 from nil in FY23.
• PAT loss widened slightly to ₹300 Cr in FY24 from ₹274 Cr in FY23.
• EBITDA loss reduced to ₹177 Cr in FY24, showing operational improvement.
• Fixed assets rose sharply to ₹44,114 Cr, indicating capex execution.
• Borrowings increased to ₹4,522 Cr in FY24 to fund capacity buildout.
• Negative margins across EBITDA, EBIT, PBT, and PAT due to initial scale-up stage.
• Share capital surged to ₹70,752 Cr post equity raise at ₹35/share.

Pros

• Strong Parentage: Backed by Gujarat Fluorochemicals with proven chemical expertise.
• Early Mover Advantage: Among India’s first integrated EV battery material suppliers.
• Large Market Opportunity: $116B TAM for battery materials by FY31E.

Cons

• High Valuation Risk: Market cap of ₹25,000 Cr with minimal revenue.
• Execution Risk: Rapid ramp-up may face bottlenecks or delays.
• Customer Dependency: Relies on US clients and IRA-linked incentives.

Key Details