The 465% Story: How a Refrigerant Manufacturer Became a Market Star

Copyright © HT Digital Streams Limited All rights reserved. Madhvendra 5 min read Oct 22, 2025, 9:00 am. IST Stallion expects revenue to rise six-fold to ₹2,500 crore by FY30, driven by capacity expansion, specialty gas diversification and operating leverage. (AI-generated image for representational purposes) Summary Once a niche player in industrial gases, this company is now at the center of India’s green refrigerant revolution—and investors are taking note. Over the past six months, shares of Stallion India Fluorochemicals, a maker of refrigerants and industrial gases, have risen an astonishing 465%, turning the once obscure company into one of India’s most watched midcaps. The rally reflects not only investor enthusiasm but also a deeper shift underway in India’s industrial gases and fluorochemicals sector — one that is critical to modern infrastructure, from data centers to electric vehicles. Just like technology, gases are also in the middle of a transformation – from older, high-emission compounds to more sustainable and climate-friendly alternatives. The industry is moving away from chlorofluorocarbons (CFCs) and hydrochlorofluorocarbons (HCFCs), often called “sunset gases,” to a new generation of refrigerants known as hydrofluoroolefins (HFOs), or “sunrise gases.” It has no ozone depletion potential and significantly lower global warming potential, which is consistent with India’s climate goals. The Indian fluorochemicals and specialty gases market is expected to grow at a robust CAGR of 16-18% between 2024 and 2029, driven by demand from electronics, semiconductors, and automotive. Within this fast-growing space, four companies – SRF, Gujarat Fluorochemicals, Navin Fluorine and Stallion – command nearly 78% of the market, with Stallion holding around 10%. What Makes Stallion Different Stallion India Fluorochemicals is a specialized supplier of refrigerants and industrial gases. It operates in the critical segment of gas defilling, mixing and processing – importing molecules, purifying them and filling them into cylinders. Although it does not yet produce base molecules, its operations cover more than 40 gases in 15 industries, from automotive and pharmaceuticals to defense and solar. Almost 60% of Stallion’s portfolio is multi-use, meaning the same gas can serve as a refrigerant, blowing agent or propellant, depending on purity. Its facilities in Khalapur, Ghiloth, Manesar and Panvel give it a strong pan-India footprint, and the company claims to have maintained no supply disruptions even during global shortages. With a domestic share of 10%, Stallion is now one of India’s leading organized refrigerant gas players. Strategically, Stallion has focused on the aftermarket segment, which contributes about 80% of industry demand and offers much higher margins than OEM offerings. Around 60-70% of its volumes serve this segment, which provides steady cash flow and pricing power. Driving the rally Investor optimism stems from Stallion’s aggressive forward and backward integration plans – moves that could make it the only Indian player with a fully integrated presence across the refrigerant value chain. The company is doubling capacity with two new plants at Mambattu (Andhra Pradesh) and Khalapur (Maharashtra). The Mambattu facility, with an annual capacity of 7,200 metric tons, will anchor Stallion’s entry into HFOs and specialty gases – increasingly used in high-demand sectors such as data centers and semiconductors. An important competitive advantage lies in its patent access. Stallion is one of only two companies, along with Chemours (formerly DuPont), authorized to sell HFOs in India through a long-standing partnership with Honeywell. No domestic HFC manufacturer can produce or sell HFOs until this patent expires. The Mambattu plant will also handle helium and semiconductor gases, reflecting Khalapur’s upgraded operations. Once completed, Khalapur will process 1,200 metric tons of liquid helium annually, placing Stallion among the few Indian suppliers in this niche segment. The company has also increased its cylinder gas filling standard from 200 bar to 300 bar, allowing 50% more gas per cylinder – a benchmark currently met only by Linde in India. Backward Integration in Manufacturing Already forward-integrated across distribution, blending and packaging, Stallion now seeks to move upstream. It has signed an MoU with the Rajasthan government to build a 10,000-tonne R-32 refrigeration plant in Bhilwara, with an investment of over ₹200 crore. Production is expected to begin by July 2026, potentially generating ₹500-700 crore in annual revenue at full capacity. The plant will produce R-32 – a key input in the next generation of low global warming potential refrigerants – along with blends such as 410A, 404A, 454B and 513A. Stallion also plans to add anhydrous hydrogen fluoride and methylene chloride to its portfolio within the next 18 months. Finance underlines the growth story In the first half of FY26, revenue rose 52% year-on-year to ₹216 crore, driven by higher volumes and a richer product mix. Ebitda margin rose 320 basis points to 13.9%, while PAT rose 144% to ₹22 crore. Management is confident of meeting its full year revenue guidance of ₹430 crore (up from ₹377 crore in FY25), with incremental contributions of ₹100 crore expected in FY26 and FY27 from new facilities. Looking ahead, Stallion expects revenue to rise six-fold to ₹2,500 crore by FY30, driven by capacity expansion, specialty gas diversification and operating leverage. Fully integrated operations and entry into manufacturing (22–24% PAT margin) and specialty gases (16–20% PAT margin) could increase blended margins by 800 basis points to 17–18%, while RoCE and RoE improve from FY25 levels of 16% and 10.8%, respectively. For more such analysis, read Winspols. Valuations: priced for perfection Stallion’s expansion story led to a sharp valuation adjustment – ​​from a p/e of 16x to 74x, now in line with Gujarat Fluorochemicals (66x) and Navin Fluorochemicals (74x). While valuations look full, the stock’s trajectory will depend on execution, particularly how effectively the company delivers on its ambitious integration and capacity plans. About the Author: Madhvendra has over seven years of experience in equity markets and writes detailed research articles on listed Indian companies, sectoral trends and macroeconomic developments. Disclaimer: The author does not hold the stocks discussed in this article. The purpose of this article is only to share interesting charts, data points and thought provoking opinions. This is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your adviser. This article is for educational purposes only. Get all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download the Mint News app to get daily market updates. more topics #Winspols #Indian stocks #Hings India Fluorochemicals Read next story