SRF Limited , a leading chemical-based multi-business entity, has expressed optimism for improved performance in the fiscal year 2026 (FY26) during its recent earnings call. The company anticipates stable to higher prices for hydrofluorocarbons (HFCs) throughout the fiscal year, which could potentially boost its Fluorochemicals business segment.

Chemical Division Growth Targets Maintained

Despite a strong performance in the first quarter, SRF has decided to maintain its original growth targets for the Chemical Division. This decision suggests a cautious yet confident approach to the company's core business segment.

PTFE Business Expansion

SRF has set an ambitious target for its polytetrafluoroethylene (PTFE) business, aiming to achieve 75-80% capacity utilization by the end of FY26. This goal indicates the company's focus on expanding its presence in the fluoropolymers market.

Q1 FY26 Financial Highlights

The company has released its unaudited financial results for the first quarter ended June 30, 2025:

The company has shown significant improvement in its financial performance compared to the same quarter in the previous fiscal year.

Segment-wise Performance

Chemicals Business

This segment reported a 24.10% year-on-year increase in revenue to Rs. 1838.90 crore, with EBIT margins expanding from 20.70% to 27.30%.

Performance Films & Foil Business

Revenue grew by 6.10% to Rs. 1418.20 crore, with EBIT margins improving from 6.50% to 9.90%.

Technical Textiles Business

This segment faced challenges with an 11.20% decline in revenue to Rs. 466.60 crore and EBIT margins contracting from 12.90% to 8.10%.

Future Outlook

SRF remains focused on maximizing HFC production and expects the refrigerant gas market to remain stable. The company is also optimistic about its PTFE business, anticipating positive developments in FY26.

For the Performance Films & Foil Business, SRF expects favorable demand-supply conditions in the domestic BOPP (Biaxially Oriented Polypropylene) market. The company's operations in Hungary are expected to perform better due to operational efficiencies.

In the Technical Textiles segment, SRF anticipates positive trends in Polyester Industrial Yarn and Polyester Tyre Cord Fabric sales.

With these strategic focuses and market expectations, SRF appears well-positioned to navigate the challenges and opportunities in the coming fiscal year.

SRF Limited , a leading chemical-based multi-business entity, has reported robust financial results for the first quarter, with a significant boost in profitability driven by strong performance in its Chemicals Business segment.

Key Financial Highlights

• Gross operating revenue increased by 10.2% to ₹3,818.60 crore, up from ₹3,464.10 crore in the same quarter last year
• Profit after tax surged 71.4% to ₹432.30 crore, compared to ₹252.20 crore in the same quarter last year
• EBITDA grew 31.6% to ₹850.30 crore, with margins expanding to 22.3% from 18.6%

Segment Performance

Chemicals Business

• Revenue rose 24.1% to ₹1,838.90 crore, contributing 48.2% of total revenue
• EBIT increased 64.1% to ₹502.90 crore, with strong margins of 27.3%
• Specialty Chemicals witnessed demand uptick for key agrochemical intermediates
• Fluorochemicals delivered robust performance, driven by higher refrigerant gas pricing

Performance Films & Foil Business

• Revenue grew 6.1% to ₹1,418.20 crore
• EBIT surged 61.6% to ₹140.20 crore
• Achieved highest-ever packed production, reflecting enhanced operational efficiency

Technical Textiles Business

• Revenue declined 11.2% to ₹466.60 crore
• EBIT fell 44.4% to ₹37.60 crore due to subdued domestic demand for Nylon Tyre Cord Fabric

Capital Expenditure Plans

The Board of Directors has approved two significant capital expenditure projects:

1. A new agrochemical production facility in Dahej, Gujarat, with an investment of ₹250.00 crore
2. A BOPP line and metallizer at Indore, with a projected cost of ₹490.00 crore, to be commissioned in approximately 24 months

Management Commentary

Ashish Bharat Ram, Chairman and Managing Director, stated, "In spite of a weak summer and prevailing global uncertainties, we have had a good start to the year. We remain cautiously optimistic for the rest of the year. Our capital expenditure plans continue to be robust, as reflected in the latest announcements."

Dividend Declaration

The Board has declared an interim dividend of ₹4.00 per share (40%) on the paid-up equity share capital of the company. The dividend will be paid to eligible shareholders on or before August 19.

Innovation and Recognition

SRF Limited continues to focus on innovation, with a total of 494 patent applications filed to date, of which 153 have been granted globally. The company's commitment to quality was recognized with the ZERO PPM Award from Toyota Kirloskar Motor Pvt Ltd for its Fluorochemicals Business.

Despite challenges in certain segments, SRF Limited's strong performance in Q1, particularly in its Chemicals Business, demonstrates the company's resilience and strategic focus on high-growth areas. The approved capital expenditure projects indicate confidence in future growth prospects and market demand for the company's products.