💰 Financial Performance

Revenue Growth by Segment

Overall revenue grew 55.6% YoY in Q2 FY26 to INR 105.75 Cr and 52.8% YoY in H1 FY26 to INR 216.3 Cr. Segment-specific percentage splits are not disclosed, but growth is driven by higher volumes in refrigerants and improved product mix across 15+ industries.

Geographic Revenue Split

The company maintains pan-India coverage with 4 existing facilities and 2 upcoming units. Specific regional percentage splits are not disclosed in the available documents.

Profitability Margins

PAT increased 135% YoY in H1 FY26 to INR 21.78 Cr. FY25 PAT was INR 32.35 Cr, a 109% increase from INR 15.48 Cr in FY24. The company targets a PAT margin of 22% for the upcoming R-32 plant.

EBITDA Margin

EBITDA margin expanded to 14.9% in Q2 FY26, with EBITDA surging nearly seven-fold to INR 15.77 Cr. H1 FY26 EBITDA almost doubled to INR 13.14 Cr.

Capital Expenditure

The promoter infused INR 45.74 Cr of interest-free funds for the R-32 manufacturing project at Bhilwara. The company is also investing in a new facility at Mambattu for HFO blends. Total IPO proceeds aggregated to INR 160.73 Cr.

Credit Rating & Borrowing

The promoter provided INR 45.74 Cr as interest-free funds to avoid debt-related delays. Specific credit ratings and interest rates for external bank borrowings are not disclosed.

⚙️ Operational Drivers

Raw Materials

Refrigerant gases (including R-32), HFO blends, and specialty industrial gases. Specific percentage of total cost for each is not disclosed.

Import Sources

Global sources via import quotas. Specific countries are not listed, but the company emphasizes its 35-year global reach and understanding of international supply chains.

Key Suppliers

Not disclosed in available documents, though the company mentions well-established vendor relationships and efficient procurement practices.

Capacity Expansion

Currently operates 4 facilities (~48,000 sq. mt.). Expanding with 2 new facilities (40,000 sq. mt. additional), including the Mambattu facility (operational Jan 2026) and the Bhilwara R-32 plant (operational July 2026).

Raw Material Costs

Not explicitly disclosed as a % of revenue, but the company is pursuing backward integration (R-32 plant) to enhance cost control and margin resilience against price volatility.

Manufacturing Efficiency

Utilizes automated debulking and blending systems and high-precision filling equipment to shorten delivery cycles and ensure product consistency.

Logistics & Distribution

Maintains logistics assets and strategically located facilities to ensure pan-India coverage and quick turnaround times. Specific distribution costs as a % of revenue are not disclosed.

📈 Strategic Growth

Expected Growth Rate

30-35%

Growth Strategy

Growth will be driven by backward integration through the R-32 plant (expected INR 500 Cr annual revenue), entering high-growth verticals like semiconductors, solar cells, and electronics, and expanding the distribution reach for the aftermarket segment.

Products & Services

Refrigerant gases (R-32, 454B), custom gas formulations, specialty gases for semiconductors and solar cells, and cylinder filling services.

Brand Portfolio

Stallion India Fluorochemicals.

New Products/Services

HFO blends (454B) with lower Global Warming Potential (GWP) and high-purity gases for the semiconductor and electronics industries.

Market Expansion

Targeting the semiconductor and renewable energy sectors (solar cells) to benefit from structural demand shifts in green chemistry.

Market Share & Ranking

Commands a 'notable' market share in India’s refrigerant segment. Specific percentage ranking is not disclosed.

Strategic Alliances

The company has received calls from large buyers for working in joint cooperation and advance order bookings, though specific partner names are not disclosed.

🌍 External Factors

Industry Trends

The industry is shifting from high GWP products (R-32 at 650 GWP) to lower GWP products (454B at 300 GWP). Regulatory quotas are being used to force this transition, positioning Stallion's new HFO blends for high demand.

Competitive Landscape

The market is restrictive due to quotas; only 10-20 entities hold such quotas. Key competitors are not named, but the company competes on 'monopoly-like' access to specific gases.

Competitive Moat

The primary moat is the restrictive import quota system which acts as a barrier to entry for new competitors. This is sustained by 35 years of industry experience and the transition to in-house manufacturing.

Macro Economic Sensitivity

Highly sensitive to environmental regulations and the global shift toward green chemistry and energy efficiency.

Consumer Behavior

OEMs (like AC manufacturers) are shifting toward lower GWP refrigerants to meet production quotas and environmental standards.

Geopolitical Risks

Global trends in environmental compliance and international best practices for material handling impact operational standards.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by import/production quotas and GWP (Global Warming Potential) calculations. The company must comply with the Companies Act 2013 and Insider Trading regulations.

Environmental Compliance

Operations are aligned with ISO-certified standards and international best practices for leak prevention and waste management to meet tightening global refrigerant regulations.

Legal Contingencies

The Secretarial Auditor noted observations regarding non-compliance with the Companies Act 2013 and Insider Trading regulations for FY25; the Board is undertaking steps to ensure future compliance. No specific court case values in INR were disclosed.

⚠️ Risk Analysis

Key Uncertainties

Material deviation in IPO proceed utilization (INR 3.99 Cr excess spent on issue expenses, a 25-50% deviation) and potential discrepancies in data submission to monitoring agencies.

Geographic Concentration Risk

The company has a pan-India presence with facilities in multiple locations, reducing regional concentration risk.

Third Party Dependencies

Dependency on the government for maintaining or reducing import quotas, which are the lifeblood of the trading/blending business.

Technology Obsolescence Risk

Risk of products becoming obsolete if they do not meet rapidly tightening GWP standards; mitigated by the move into HFO blends and semiconductor gases.