SRF Q4FY26 Net Profit Rises 11%; EBITDA Margin Expands to 25.5%

SRF Limited , a chemical-based multi-business entity engaged in the manufacturing of industrial and specialty intermediates, announced its audited consolidated financial results for the fourth quarter and year ended March 31, 2026. The Board of Directors approved the results in a meeting held on May 5, 2026, and recommended a "Nil" final dividend. The statutory audit was conducted by B S R & Co. LLP, which issued an unmodified opinion on the financial results. The company also released an investor presentation for the earnings call scheduled on May 6, 2026. Additionally, the company intimated the stock exchanges regarding the newspaper publication of these audited financial results in Business Standard and Jansatta on May 6, 2026, in compliance with Regulation 30 of the SEBI (LODR) Regulations, 2015.

Consolidated Financial Performance

For the quarter ended March 31, 2026, the company reported a 7% increase in revenue from operations to Rs 4,615.17 crores, up from Rs 4,313.34 crores in the corresponding period last year. EBITDA rose 13.5% to Rs 1,176.8 crores, with the EBITDA margin expanding to 25.5% from 24.0% year-on-year. 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.

Commenting on the results, Chairman and Managing Director Ashish Bharat Ram said, "It was a good quarter for the Company, particularly in the context of the volatile environment in which we are operating. Exports to the Middle East were impacted during the quarter. While we remain confident about the path ahead, the prevailing geopolitical uncertainty continues to be a key concern."

Metric:	Q4 FY26	Q4 FY25	FY26	FY25
Gross Operating Revenue (Rs. Cr.):	4,615.17	4,313.34	15,786.51	14,693.07
EBITDA (Rs. Cr.):	1,176.8	1,037.0	3,705.0	2,970.3
EBITDA Margin (%):	25.5%	24.0%	23.5%	20.2%
Profit Before Tax (Rs. Cr.):	757.1	707.4	2,301.6	1,703.7
Net Profit After Tax (Rs. Cr.):	582.02	526.06	1,835.18	1,250.78
Basic EPS (Rs.):	19.63	17.75	61.91	42.20

Segment-Wise Performance

The Chemicals Business reported a 3.9% increase in segment revenue to Rs 2,448.3 crores in Q4FY26, with EBIT rising 4.6% to Rs 782.7 crores. The Performance Films & Foil Business saw a 13% revenue growth to Rs 1,595.6 crores, with EBIT jumping 46.8% to Rs 153.6 crores. The Technical Textiles Business revenue increased 5.3% to Rs 482.5 crores, while EBIT grew 62.6% to Rs 65.2 crores. The Other Businesses reported a marginal increase in segment revenue to Rs 88.7 crores, while EBIT decreased 26.3% to Rs 9.1 crores.

Segment:	Q4 FY26 Revenue (Rs. Cr.)	Q4 FY25 Revenue (Rs. Cr.)	Q4 FY26 EBIT (Rs. Cr.)	Q4 FY25 EBIT (Rs. Cr.)
Chemicals Business:	2,448.3	2,355.3	782.7	748.5
Performance Films & Foil Business:	1,595.6	1,412.2	153.6	104.6
Technical Textiles Business:	482.5	458.4	65.2	40.1
Other Businesses:	88.7	87.4	9.1	12.4

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 revised scope includes a 20,000 tons per annum HFO production facility and a new HF plant with a capacity of 30,000 tons per annum. 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, to be completed in 8 months. Additionally, the Board approved the indefinite deferment of the BOPP Film facility at Indore, originally projected at Rs 490 crore, following a material evaluation of the operating environment.

Innovation, Awards and Recognition

As of March 31, 2026, SRF has applied for 521 patents and has been granted 156 patents globally. On the recognition front, SRF was named the Procurement Champion at the ISCM India Procurement Ranking 2026, while SRF Industries (Thailand) Ltd. was honored with the Green Star Award by the Industrial Estate Authority of Thailand.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+8.17%	+7.75%	+12.95%	-7.23%	-8.44%	+99.59%

SRF Limited has significantly enhanced its capital outlay for the establishment of fourth-generation refrigerant production facilities, revising the approved expenditure from ₹1,100 crores to ₹2,285 crores. The revision follows a change in project scope, as approved by the Board at its meeting held on May 5, 2026. The original capital expenditure of ₹1,100 crores had been sanctioned by the Board at its meeting on October 22, 2024.

Revised Capital Expenditure at a Glance

The key parameters of the revised capital expenditure are summarised below:

Parameter:	Details
Original Capex Approved:	₹1,100 crores
Revised Capex Approved:	₹2,285 crores
Original Approval Date:	October 22, 2024
Revised Approval Date:	May 5, 2026
Project Location:	Gopalpur, Odisha
Expected Completion:	February 28, 2028
Financing:	Mix of debt and internal accruals

Expanded Project Scope

The revised project scope encompasses a broader range of manufacturing capabilities and infrastructure development. The three key components of the expanded project are:

20,000 MTPA Hydrofluoroolefins (HFOs) plants for the production of fourth-generation refrigerants
30,000 MTPA Anhydrous Hydrogen Fluoride (AHF) plant, along with forward integration into Value-added Hydrogen Fluoride (VHF) products
Development of necessary utilities and infrastructure to support the above facilities at the proposed site in Gopalpur, Odisha

Strategic Rationale

The enhanced investment is driven by the anticipated demand for HFOs and VHF products. The project is aligned with the Company's strategic objective of strengthening its position in next-generation refrigerants and integrated fluorochemical value chains. The facilities are to be financed through a combination of debt and internal accruals, with completion targeted by February 28, 2028.