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Informist, Thursday, Jul. 24, 2025

By P. Madhu Kumar and Narayana Krishna

MUMBAI/HYDERABAD – SRF Ltd. is confident of achieving the revenue growth guidance of 20% for 2025-26 (Apr-Mar) despite the challenging environment across business segments. The revenue growth will be driven by new product launches, despite scathing competition from China, and continued growth in the aluminium foil business, the company's management said at a post-earnings conference call with analysts.
 

Although pricing pressure on some products persists due to the volatility in global trade conditions, the market share is expected to be retained, with management maintaining a positive outlook for the future. 

The chemical major expects the aluminium foil business to gain traction within the domestic market, as the anti-dumping duty imposed by the government has proven beneficial. The government imposed an anti-dumping duty on aluminium foil from China after the Directorate General of Trade Remedies found that it was being exported to India at prices below the normal value, causing material injury to the domestic industry. The company said aluminium foil utilisation levels are between 60% and 70%. 

SRF's Chief Executive Officer Ashish Bharat Ram said demand for hydrofluorocarbons remains strong despite global restrictions on the use of the chemical due to potential global warming hazards. "We believe that the pricing is strong and given overall market conditions, it is likely to reopen that way," Ram said.

SRF Wednesday reported a 71% on-year jump in its consolidated net profit to INR 4.32 billion. The company's revenue rose over 10% to INR 38.19 billion.  

The management said that there is a shortage of biaxially-oriented polypropylene films in India and the demand and supply have become "completely twisted", which has created worldwide disruptions in the trade of the product. The shortage was due to the recent fire at Jindal Poly Films' Nashik plant, which manufactures BOPP and biaxially-oriented polyethylene terephthalate films. 

The multi-business chemicals conglomerate sees pricing pressure in the speciality chemicals segment and is working on cost optimisation for the products in the segment. "We are working on our overall situation, let's say, utilisation of the product, and therefore, want to continue it like that," the management said. 

The company's overall order book is resilient and is in a "fairly good position," the management claimed. The company is confident of achieving its 20% revenue growth guidance despite trade uncertainties resulting from US tariffs globally. Regarding the R-32 refrigerant, which the company said has the highest demand among its products, the pricing of the gas remains strong and is likely to continue growing. 

On Thursday, the company's shares closed 1.3% lower at INR 3150.40 on the National Stock Exchange. End

Edited by Saji George Titus

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