SRF Limited has announced the commissioning and capitalisation of the first phase of its Capacitor Grade BOPP Film manufacturing facility located at Indore. The development was formally communicated to stock exchanges on 15.05.2026 by Rajat Lakhanpal, Sr. Vice President (Corporate Compliance) & Company Secretary of the company.

Project Background

The Capacitor Grade BOPP Film manufacturing facility at Indore traces its origins to a Board of Directors approval communicated via a letter dated 27.10.2023. The approval covered the setting up of a dedicated manufacturing line for Capacitor Grade BOPP Film at the Indore location, marking a significant capital expenditure commitment by the company.

Phase-wise Commissioning Details

The project is being executed in two phases. The first phase has now been successfully commissioned and capitalised, while the second phase remains on track for completion later in 2026. The key details of both phases are outlined below:

Disclosure and Compliance

The announcement was made in accordance with Regulation 30 of the applicable regulatory framework, with formal intimations submitted to both BSE Limited and the National Stock Exchange of India Limited. The disclosure was signed and authenticated digitally by Rajat Lakhanpal on 15.05.2026. SRF Limited's corporate office is located at Block-C, Sector 45, Gurugram, Haryana.

SRF has received a Buy rating initiation from HSBC, with the global brokerage setting a target price of ₹3390 for the stock. The initiation highlights the company's significant international presence, with overseas revenue accounting for 50% of total revenue, positioning it as a globally exposed diversified chemicals and materials company.

HSBC's Investment Thesis

HSBC's bullish stance on SRF is anchored in the company's improving fundamentals across two key business segments — specialty chemicals and performance films. The brokerage expects these segments to be the primary growth engines, projecting a 26% earnings CAGR over FY27–29. The strong global exposure, reflected in the 50% overseas revenue contribution, is seen as a structural advantage that broadens the company's addressable market and reduces dependence on domestic demand cycles.

The following table summarizes the key parameters of HSBC's coverage initiation:

Key Risks Highlighted

While the overall outlook is positive, HSBC has outlined several risk factors that could weigh on SRF's performance. These risks span regulatory, geopolitical, and sector-specific dimensions:

• Refrigerant gases: Potential headwinds from pricing or regulatory pressures in the refrigerant gases segment
• Tariffs and anti-dumping duties: Exposure to trade policy changes that could impact competitiveness in key markets
• Further price declines: Risk of continued softness in product pricing across relevant chemical categories
• Middle East-related raw material shortages: Geopolitical developments in the Middle East could disrupt the supply of critical raw materials
• Elevated agrochemical inventories: Persistent high inventory levels in the agrochemical sector may delay demand recovery and affect offtake

Outlook

HSBC's initiation reflects a constructive view on SRF's medium-to-long-term growth trajectory, driven by its diversified global business model and the anticipated recovery in specialty chemicals and performance films. However, the brokerage's risk flags underscore that the path to earnings growth is contingent on navigating a complex set of external headwinds across trade, geopolitics, and sector-specific inventory dynamics.