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Informist, Monday, Oct. 20, 2025

By Pallavi Singhal

NEW DELHI – SRF Ltd., a leading specialty chemicals and packaging company, is poised for robust earnings growth for the September quarter, led by solid performance in its chemicals and packaging films businesses. Analysts anticipate net profit to more than double, driven by a sustained strength in refrigerant gases and fluorochemicals. However, the technical textiles segment may see a seasonal softness, according to analysts.

SRF is expected to post a net profit of INR 4.35 billion for the September quarter, up 116% on year and nearly 1% on quarter, according to an average of estimates of nine brokerages. Revenue for the reporting quarter is projected at INR 38.2 billion, marking a 12% on-year increase but remaining flat on quarter. The company's earnings before interest, tax, depreciation, and amortisation are estimated to rise 38% on year to INR 8.2 billion, though likely to fall around 4% from the June quarter.

The highest net profit estimate is INR 5.4 billion by Nuvama Wealth Management Ltd. and the lowest is INR 4 billion by IDBI Capital Market Services Ltd. The highest revenue estimate is INR 40.5 billion by Prabhudas Lilladher Pvt. Ltd. while the lowest is INR 36.7 billion by Kotak Securities Ltd.

All brokerages are unanimous in identifying SRF's chemicals division as the key growth driver this quarter. ICICI Securities expects a 21.3% on-year revenue expansion in this segment to INR 16.5 billion. 

SRF is well-positioned to benefit from elevated refrigerant gas prices, given its significant production in this segment, according to Centrum Broking. Nuvama sees an over 20% price-led growth in revenue, solely from refrigerant gases. Additionally, the potential imposition of anti-dumping duties on key products such as R-134a, polytetrafluoroethylene, and hindered amine light stabilizers could provide medium-term upside to margins across SRF's chemical portfolio, Prabhudas Lilladher said. R-134a is a refrigerant, polytetrafluoroethylene is a nonstick polymer, and hindered amine light stabilisers are polymer additives that provide UV protection.

The company's top line is also expected to grow on the back of a consistent month-on-month rise in its export numbers, brokerages said. Despite industry-wide challenges from Chinese oversupply and US tariff uncertainties, SRF remains a clear outperformer due to resilient export recovery and demand traction in fluoropolymers, Systematix Shares and Stocks (India) Ltd. said. 

Moreover, margins in the packaging films business are also likely to show structural improvement amid improved demand, according to the brokerage Motilal Oswal. The packaging films revenue is seen rising over 7% on year and nearly 8% on quarter to INR 15.3 billion, as per an estimate by ICICI securities. Both Kotak Securities and Systematix note spreads in biaxially oriented polypropylene films have softened lately on rising imports, which may limit sequential growth despite operational efficiency gains. Biaxially oriented polypropylene film is a strong, versatile, and flexible plastic film used in packaging for snacks, food, pharmaceuticals, as well as for labels, tapes, and lamination. 

However, the technical textiles sector is likely to remain weak due to seasonality. Technical textiles are fabrics and products used in a wide range of industrial and specialised applications, such as construction, automotive, healthcare, and protective clothing. ICICI Securities projects revenue from this segment to fall 15% on year and 2% on quarter to INR 4.5 billion.  Motilal Oswal expects this segment to have a "muted quarter", consistent with its historical trend.

SRF is expected to post earnings before interest, tax, depreciation, and amortisation of INR 8.2 billion for the September quarter. The estimates for EBITDA range from INR 8.9 billion by Prabhudas Lilladher to INR 7.9 billion by Kotak Securities.

Of the 16 brokerage reports available on the company, nine have a 'buy' rating, with an average target price of INR 3,442. Six brokerages have a 'hold' rating, with an average target price of INR 2,544. Only one brokerage has a 'sell' rating at the price of INR 2,990 a share. SRF is scheduled to announce its financial results on Oct. 27.

On Monday, shares of SRF Ltd. closed 0.3% higher at 3,179.90 on the National Stock Exchange. The stock is down 0.4% since the company announced its June quarter earnings on Jul. 23.

Following are the Jul–Sept earnings estimates for SRF Ltd. from nine brokerage firms in descending order by net profit estimates, with values in INR million:

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Edited by Subhojit Sarkar

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