SRF Limited has announced a facility for shareholders to apply for reduced or nil Tax Deducted at Source (TDS) on dividend payments. The announcement, made on January 21, 2026, follows the company's dividend declaration from the previous day and provides shareholders with an opportunity to minimize tax deductions on their dividend income.

TDS Relief Facility Details

The company has established a comprehensive system allowing shareholders to submit necessary documentation for TDS relief consideration. This facility enables eligible shareholders to apply for either lower rate TDS deduction or complete exemption from TDS on their dividend payments.

Documentation and Submission Process

SRF has provided detailed guidelines for shareholders seeking TDS relief on dividend payments. The complete list of required documents and submission procedures are available in a dedicated letter posted on the company's official website. Shareholders can access this information at the company's investor relations section to understand the specific requirements for their eligibility category.

Important Timeline for Shareholders

The company has set a strict deadline of January 29, 2026, for document submission. This timeline is crucial for shareholders who wish to benefit from reduced TDS rates, as submissions received after this date may not be processed in time for the dividend payment. The eight-day window from announcement to deadline provides shareholders with adequate time to gather and submit required documentation.

Corporate Communication

The notification was signed by Rajat Lakhanpal, Senior Vice President (Corporate Compliance) and Company Secretary, emphasizing the company's commitment to facilitating shareholder benefits. SRF's proactive approach in providing this facility demonstrates its focus on shareholder-friendly policies and transparent communication regarding dividend-related procedures.

SRF reported mixed Q3FY26 financial results, with consolidated revenue reaching ₹37.10 billion, representing a 6.3% year-on-year increase and 2% quarter-on-quarter growth. The performance reflected varied segment dynamics, with some businesses showing strong momentum while others faced market pressures.

Segment-wise Performance Analysis

The company's business segments delivered contrasting results during the quarter:

The Chemicals segment emerged as the standout performer, posting robust 22% year-on-year growth and 9% quarter-on-quarter expansion. The Fluorochemicals business also delivered strong results, supported by higher volumes and improved price realizations across key products.

Challenges in Key Segments

The Performance Films segment faced significant headwinds, declining 3% year-on-year and 5% quarter-on-quarter. Margins in this segment contracted by 130 basis points sequentially due to reduced volumes and range-bound pricing in BOPET and BOPP products. The segment continues to face competitive pressure from low-cost imports and experienced temporary disruptions related to GST 2.0 implementation.

The Technical Textiles business also came under pressure, particularly impacted by margin stress in Belting Fabric operations. This was attributed to the continued influx of cheaper Chinese imports and US tariffs affecting export volumes.

Investment Plans and Future Outlook

SRF has outlined significant capital investment plans for expansion:

Despite these expansion plans, the company faces ongoing market challenges including subdued agrochemical demand and persistent oversupply from Chinese producers, which remain key concerns for the business outlook.

Analyst Recommendation

Prabhudas Lilladher maintains a cautious stance on SRF, issuing a 'Hold' rating with a target price of ₹2,994 based on Sum-of-the-Parts (SOTP) valuation methodology. The brokerage firm's recommendation reflects the mixed performance across business segments and ongoing market uncertainties, particularly in the agrochemicals space and competitive pressures from international markets.