SRF Limited , a multi-business chemical conglomerate, has announced significant investments in new manufacturing facilities while reporting robust financial results for the first quarter of fiscal year 2026.

Major Investments in New Facilities

The company's board has approved two major investments totaling ₹740 crores:

1. A ₹250 crore investment to establish an agrochemicals production facility in Dahej, Gujarat. This project is expected to be completed within 18 months.
2. A ₹490 crore investment to set up a 60,000 MTPA BOPP (Biaxially Oriented Polypropylene) film manufacturing facility in Indore, Madhya Pradesh. This facility is slated for completion in 24 months.

These investments underscore SRF's commitment to expanding its production capabilities and meeting growing customer demand across its business segments.

Strong Q1 FY26 Financial Performance

SRF Limited has reported impressive financial results for Q1 FY26:

The company's performance was primarily driven by its Chemicals Business, which saw a 24% increase in revenue, rising from ₹1,482 crore to ₹1,839 crore year-on-year. The operating profit of this segment surged by 64%.

Segment-wise Performance

Chemicals Business

Witnessed strong demand for key agrochemical intermediates and robust performance in export markets.

Fluorochemicals Business

Delivered solid results, driven by higher refrigerant gas pricing and enhanced exports.

Performance Films & Foil Business

Achieved its highest-ever packed production, reflecting improved operational efficiency.

Technical Textiles Business

Faced challenges with decreased domestic demand for Nylon Tyre Cord Fabric and pricing pressures in Belting Fabrics due to Chinese competition.

Management Commentary

Ashish Bharat Ram, Chairman and Managing Director of SRF Limited, expressed cautious optimism about the company's outlook for the remainder of the year. He 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 of Directors has declared a first interim dividend of ₹4 per share for FY 2025-26, amounting to a total payout of ₹118.57 crores.

Innovation and Intellectual Property

As of June 30, 2025, SRF has applied for a total of 494 patents globally, with 153 patents granted to date, highlighting the company's continued focus on innovation and R&D.

SRF Limited's strategic investments, strong financial performance, and ongoing focus on innovation position the company well for sustained growth in the chemical and industrial intermediates sector.

SRF Limited , a multi-business chemicals conglomerate, has reported robust financial results for the first quarter of fiscal year 2025-26, accompanied by an interim dividend announcement.

Financial Highlights

The company's consolidated performance for Q1 FY26 showcased significant growth:

SRF's consolidated revenue from operations rose to ₹3,818.62 crore, marking a 10.2% increase from ₹3,464.12 crore in the same quarter of the previous fiscal year. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a substantial jump of 36.6% year-over-year, reaching ₹858.96 crore compared to ₹628.68 crore in Q1 FY25.

The EBITDA margin improved significantly, expanding by 440 basis points to 22.5% from 18.1% in the corresponding quarter of the previous year. This margin expansion reflects enhanced operational efficiency and improved product mix.

Net profit for the quarter surged by 71.4% to ₹432.32 crore, up from ₹252.22 crore in Q1 FY25, demonstrating strong bottom-line growth.

Segment Performance

SRF's diverse business segments contributed to the overall growth:

1. Chemicals Business (CB): Emerged as the largest contributor with revenue of ₹1,838.95 crore.
2. Performance Films & Foil Business (PFB): Reported revenue of ₹1,418.20 crore.
3. Technical Textiles Business (TTB): Generated revenue of ₹466.55 crore.

The Chemicals Business segment showed the highest profitability with EBIT (Earnings Before Interest and Tax) of ₹502.92 crore.

Dividend Announcement

In a move that will please shareholders, SRF's Board of Directors has approved an interim dividend of ₹4 per equity share for the financial year 2025-26. The total dividend payout amounts to ₹118.57 crore.

Management Commentary

While specific management quotes were not provided, the strong financial performance across segments indicates effective execution of the company's growth strategies and resilience in a dynamic market environment.

Conclusion

SRF Limited's Q1 FY26 results demonstrate robust growth across key financial metrics, with significant improvements in revenue, EBITDA, and net profit. The company's diverse business portfolio continues to drive performance, with the Chemicals Business leading in terms of both revenue and profitability. The declaration of an interim dividend further underscores the company's commitment to shareholder returns amidst strong financial performance.

Investors and market observers will likely keep a close watch on SRF's performance in the coming quarters, particularly in light of global economic conditions and sector-specific trends affecting its various business segments.