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.

SRF Limited , a multi-business chemical conglomerate, has reported a strong financial performance for the first quarter, with a significant increase in net profit and revenue.

Impressive Profit Growth

SRF's consolidated net profit for Q1 soared to ₹432.32 crore, marking a substantial 71% increase from ₹252.22 crore in the same period last year. This impressive growth surpassed analyst expectations of ₹421 crore, highlighting the company's strong performance in a competitive market.

Revenue Performance

The company's revenue for the quarter reached ₹3,818.62 crore, up from ₹3,464.12 crore in the corresponding quarter of the previous year, representing a 10.2% year-on-year growth. However, it fell short of the estimated ₹4,091 crore projected by analysts.

Segment-wise Performance

SRF's financial results reveal strong performances across its diverse business segments:

1. Chemicals Business (CB): This segment emerged as the top performer, contributing ₹1,838.95 crore to the total revenue.
2. Performance Films & Foil Business (PFB): The second-largest contributor with revenue of ₹1,418.20 crore.
3. Technical Textiles Business (TTB): Generated revenue of ₹466.55 crore.
4. Others: Contributed ₹94.92 crore to the total revenue.

Profitability Metrics

The company demonstrated strong profitability across its segments:

• Chemicals Business led with a segment profit of ₹502.92 crore.
• Performance Films & Foil Business recorded a profit of ₹140.20 crore.
• Technical Textiles Business contributed ₹37.64 crore to the overall profit.

Financial Position

As of June 30, SRF's financial position remains robust:

• Total assets stood at ₹22,121.76 crore.
• The company maintained a healthy debt-to-equity ratio of 0.35.
• Current ratio improved to 1.17, indicating strong liquidity.

Dividend Announcement

The Board of Directors has approved a first interim dividend of ₹4 per fully paid-up equity share of ₹10 each, amounting to a total payout of ₹118.57 crore.

Management Commentary

Ashish Bharat Ram, Chairman and Managing Director of SRF Limited, stated, "Our Q1 results demonstrate SRF's resilience and strong market position. The significant growth in net profit reflects our operational efficiency and strategic initiatives across our diverse business segments."

SRF's impressive Q1 performance, marked by substantial profit growth and solid revenue increase, positions the company well for the remainder of the fiscal year. The company's multi-business strategy continues to yield positive results, with strong contributions from its chemicals and performance films segments.