Synopsis: SRF Limited reported steady quarterly growth with improved profitability, supported by strong segment performance, while scaling up investments in next-generation refrigerants despite global uncertainties and some project deferrals.
The shares of this midcap company majorly engaged in manufacturing and selling of technical textiles, chemicals, packaging films, aluminum foils, and other polymers, jumped over 8 percent after posting Q4 FY 26 result and robust business updates.
With the market capitalization of Rs. 80,232 Crores, the shares of SRF Ltd reached an intraday high of Rs. 2736 per share rising nearly 8.5 percent from its previous day close of Rs. 2527 per share and is trading at a P/E of 42.2 whereas industry P/E stands at 19.2
Q4 FY26 Result:
Year on Year analysis: Revenue from operations has increased from Rs. 4313 Crores to Rs. 4615 Crores, up 7 percent. Operating profit has increased from Rs. 957 Crores to Rs. 1026 Crores, up 7.2 percent and net profit has increased from Rs. 526 Crores to Rs. 582 Crores, up 10.6 percent
Quarter on Quarter analysis: Revenue from operations has increased Rs. 3713 Crores to 4615 Crores, up 24 percent. Operating profit has increased from Rs. 780 Crores to Rs. 1026 Crores, up 31 percent and net profit has increased from Rs. 433 Crores to Rs. 582 Crores, up 34 percent
Overall Performance
SRF Limited delivered a stable performance in Q4FY26 despite a volatile environment. Revenue increased by 7 percent year-on-year to Rs. 4,615 crore from Rs. 4,313 crore. Operating EBIT rose 12 percent to Rs. 1,011 crore from Rs. 906 crore, while profit after tax grew 11 percent to Rs. 582 crore from Rs. 526 crore. Management highlighted that the quarter remained challenging due to geopolitical issues, especially impacting exports to the Middle East, but the company still managed to maintain growth and profitability.
Segment-Wise Growth Trends
The Chemicals business, which remains the core segment, reported a 4 percent rise in revenue to Rs. 2,448 crore and a 5 percent increase in operating profit to Rs. 783 crore. Within this, Fluorochemicals performed well due to higher domestic and export demand, particularly in HFCs, along with steady contributions from industrial chemicals and fluoropolymers. Specialty Chemicals showed sequential improvement despite pricing pressure and deferred orders, supported by cost control and new product development.
The Performance Films and Foil business stood out with strong growth. Revenue increased 13 percent to Rs. 1,596 crore, while operating profit jumped sharply by 47 percent to Rs. 154 crore. This was driven by better volumes and improved margins in BOPET and BOPP films, along with focus on value-added and sustainable products.
The Technical Textiles segment also showed strong improvement. Revenue grew 5 percent to Rs. 483 crore, and operating profit surged 63 percent to Rs. 65 crore, reflecting better efficiency despite a tough demand environment. Other businesses saw marginal revenue growth from Rs. 87 crore to Rs. 89 crore, but operating profit declined 25 percent to Rs. 9 crore.
Capex and Strategic Investments
The company has significantly increased its investment plans in next-generation refrigerants. The earlier approved capex of Rs. 1,100 crore has now been revised to about Rs. 2,285– Rs. 2,300 crore. This includes setting up a 20,000 MTPA HFO plant, a 30,000 MTPA HF plant, and development of value-added HF derivatives at a new facility in Odisha. The project will be completed in phases by February 2028 and will be funded through a mix of internal accruals and debt.
Additionally, Rs. 88 crore has been approved to expand HFC capacity at Dahej, which will increase total capacity to 65,000 tonnes per annum. At the same time, the company has deferred its Rs. 490 crore BOPP film project in Indore due to changes in market conditions.
Innovation and Outlook
The company continues to invest in innovation, with 521 patents filed and 156 granted globally, including 15 new applications during the quarter. While near-term uncertainty remains due to global factors, the company’s focus on advanced chemicals, capacity expansion, and strong product pipeline provides confidence for future growth.
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