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Informist, Tuesday, May 13, 2025

--SRF: Expect chemicals business to grow 20% in FY26 

--CONTEXT: Comments by SRF mgmt in a post-earnings conference call with analysts 

--SRF: See textiles business FY26 delivering performance in line with FY25 

--SRF: Fluoropolymer business to grow stronger from FY27 

--SRF: Specialty chemicals order book visibility in 70-80% range FY26 

By Afra Abubacker and Ishaan Sharma

NEW DELHI – SRF Ltd. expects its chemical business to grow 20% in 2025-26 (Apr-Mar) due to increased utilisation of existing capacities and commissioning of new plants. However, the performance of technical textiles is likely to be subdued in line with FY25, the company's management said in a post-earnings analyst conference call.

"Broadly,... the chemicals business as a whole will grow at 20% or so in financial year 2026 and build a strong momentum for the years ahead," the company said. "Overall, the technical textiles business is expected to deliver a similar performance to financial year 2025," it added. 

The company's chemical business revenue rose 6.3% to INR 66.91 billion in FY25, while the technical textiles business revenue rose 6.9% to INR 20.29 billion. 

SRF, which released its March quarter earnings on Monday, reported a net profit of INR 5.26 billion on revenues of INR 43.13 billion. On year, the profit rose 25% and revenue increased 21%. 

SRF has commissioned the full capacity expansion for belting fabrics in the March quarter, the company management said. Going forward, SRF will focus on implementing cost optimisation measures and launching value-added products to improve the segment. 

The company hopes its core chemical business will drive its growth in FY26 amid competitive pricing and a robust export market. "While we may encounter short-term challenges from China in the speciality chemicals business, we will continue to implement effective countermeasures," SRF said. The management said it has 70%-80% visibility in its order book for FY26. 

Though a prolonged inventory de-stocking cycle resulted in pricing pressure and impacted the first half of FY25, SRF's revenue in the chemical business increased in the second half, and the March quarter reported strong numbers. "To a certain extent, that pricing pressure has come down a bit... Again, in FY26 also, we believe that there will be a positive traction that we are seeing from other chemical customers," the company said. 

In its fluorochemical business, the management expects robust refrigerant sales in FY26. The SRF board has approved a project to develop fourth-generation refrigerants with a significantly lower carbon footprint. "The project highlights SRF leadership as one of the pioneering technology developers in the global refrigerant space," the company said. On the back of commissioning new fluoropolymer plants, the company expects fluoropolymer sales to rise in FY26 and grow stronger in FY27. 

On Tuesday, shares of SRF closed 2.9% lower at INR 2,928.2 on the National Stock Exchange. End

Edited by Saji George Titus

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