SRF Limited has filed the transcript of its earnings call held on May 6, 2026, with BSE and NSE under SEBI LODR Regulations. The call discussed the audited consolidated financial results for the fourth quarter and year ended March 31, 2026. The transcript is available on the company's website. This follows the earlier submission of the audio recording of the same call.

Consolidated Financial Performance

For the quarter ended March 31, 2026, SRF reported a 7% increase in revenue from operations to Rs 4,615.17 crores. EBITDA rose 13.5% to Rs 1,176.8 crores, with the EBITDA margin expanding to 25.5%. Profit After Tax (PAT) increased 10.6% to Rs 582.02 crores. For the full year FY26, revenue grew 7.4% to Rs 15,786.51 crores, EBITDA increased 24.7% to Rs 3,705.0 crores, and PAT surged 46.7% to Rs 1,835.18 crores.

Segment-Wise Performance

The Chemicals Business reported a 3.9% increase in segment revenue to Rs 2,448.3 crores in Q4 FY26. The Performance Films & Foil Business saw a 13% revenue growth to Rs 1,595.6 crores. The Technical Textiles Business revenue increased 5.3% to Rs 482.5 crores.

Capital Expenditure and Projects

The Board revised the capital expenditure for the new generation Refrigerants project in Odisha to approximately Rs 2,300 crore. The project is expected to be completed by February 2028. The Board also approved a project to expand the existing HFC capacity at Dahej, with an estimated investment of Rs 88 crore. Additionally, the Board approved the indefinite deferment of the BOPP Film facility at Indore.

Citi has reiterated its Sell rating on SRF while revising its target price upward to ₹2675 from ₹2575, underscoring persistent concerns around the refrigerant business. The brokerage's cautious stance is anchored in the anticipated wave of R32 supply additions in India expected through CY26/27, which it believes will continue to weigh on the company's earnings outlook.

Key Rating Details

The following table summarises the key parameters of Citi's updated rating on SRF:

R32 Supply Overhang and Earnings Sensitivity

At the core of Citi's bearish view is the continued overhang from upcoming R32 refrigerant supply additions in India. The brokerage notes that this supply build-up, expected to materialise through CY26/27, poses a meaningful risk to R32 pricing dynamics. Given SRF's exposure to this segment, any adverse movement in R32 prices could have a pronounced impact on its profitability.

Citi specifically highlights the high earnings sensitivity embedded in SRF's business model with respect to R32 pricing. According to the brokerage, every $1/kg change in R32 prices translates to a nearly 7% impact on SRF's EBITDA, underscoring the material influence of refrigerant price movements on the company's overall financial performance.

Revised Target Price

While maintaining its Sell recommendation, Citi has modestly raised its target price to ₹2675 from ₹2575. The upward revision in the target price does not alter the brokerage's overall negative stance on the stock, as the fundamental concerns around supply-side pressures in the R32 segment remain intact. The revised target continues to reflect a cautious assessment of SRF's near-to-medium term earnings trajectory in the context of evolving refrigerant market dynamics.