SRF Limited , a leading multi-business chemicals conglomerate, has announced significant changes in its leadership and reported its financial results for the second quarter of fiscal year 2026. The company's Chief Financial Officer (CFO) is set to step down, marking a transition in its financial leadership.

Q2 FY26 Financial Highlights

SRF Limited reported a substantial year-over-year increase in its Q2 EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization):

Despite the significant growth, the Q2 EBITDA fell short of market expectations, which were pegged at ₹837.00 crore.

Segment-wise Performance

The company's financial results reveal a mixed performance across its business segments:

1. Chemicals Business:

   • Revenue increased by 23% year-over-year to ₹1,667.00 crore
   • Operating profit surged by 96% to ₹481.00 crore

2. Technical Textiles Business:

   • Revenue decreased by 11% to ₹474.00 crore
   • Operating profit declined by 41% to ₹42.00 crore

3. Performance Films & Foil Business:

   • Revenue marginally decreased to ₹1,408.00 crore
   • Operating profit increased by 44% to ₹119.00 crore

Strategic Developments

SRF Limited has entered into a strategic collaboration with The Chemours Company for the manufacturing, supply, and distribution of certain fluoropolymers and fluoroelastomers. This partnership is expected to contribute to the company's future growth, particularly in the Chemicals Business segment.

Leadership Change

The company announced that Rahul Jain, President and Chief Financial Officer, will be stepping down from his role on December 12, 2025. During his tenure, Jain played a crucial role in strengthening SRF's financial structure and ensuring high standards of governance and compliance. The company is currently in the process of identifying a successor to ensure a smooth transition.

Capital Expenditure Update

In line with its strategic collaboration and project scope revisions, SRF's Board has approved an increase in previously sanctioned capital expenditure from ₹595.00 crore to ₹745.00 crore. The project is expected to be completed in phases, with the final stage scheduled for completion by December 2026.

Market Challenges

The Technical Textiles Business faced significant headwinds due to aggressive import pricing of Nylon Tyre Cord Fabrics and Belting Fabrics from China, as well as low demand for Polyester Industrial Yarn. These factors contributed to the segment's decreased revenue and operating profit.

SRF Limited continues to navigate a complex global environment while maintaining its focus on strategic growth initiatives and operational efficiency. The company's diverse business portfolio and strategic partnerships position it to address market challenges and capitalize on emerging opportunities in the chemical and industrial intermediates sector.

SRF Limited , a multi-business chemicals conglomerate, has released its financial results for the second quarter, showing mixed performance against market expectations.

Revenue Growth

SRF reported a revenue of ₹3,640.00 crore for Q2, representing a year-over-year increase of 6.4% from ₹3,420.00 crore in the same period last year. However, this figure fell short of the market's estimated revenue of ₹3,852.00 crore.

Profit Surge

Despite the revenue miss, SRF's bottom line showed significant improvement:

The company's consolidated net profit nearly doubled, reaching ₹390.00 crore compared to ₹200.00 crore in the same quarter of the previous year. This represents a substantial 95% increase year-over-year.

Market Expectations

While the profit growth is impressive, it's worth noting that SRF's financial performance didn't fully meet market expectations:

The company's net profit, despite its significant year-over-year growth, fell short of the estimated ₹454.00 crore by about 14.1%.

Conclusion

SRF's Q2 results present a mixed picture. While the company has shown strong profit growth and moderate revenue increase compared to the previous year, it has not met the market's higher expectations. This performance suggests that while SRF is improving its profitability, it may be facing challenges in achieving the growth rates anticipated by market analysts.

Investors and analysts will likely be keen to understand the factors behind the revenue shortfall and the drivers of the improved profitability in SRF's upcoming investor communications.