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Informist, Monday, Oct. 27, 2025

By Pallavi Singhal

NEW DELHI – Specialty chemicals maker, SRF Ltd., missed the Street estimates for the September quarter despite posting a strong net profit growth owing to improved performance from the chemicals segment. The company disappointed the Street by reporting 93% on-year growth in consolidated net profit to INR 3.88 billion for the reporting quarter, against the Street's projection of INR 4.35 billion. 
 

The company's solid profit growth was led by improved profitability in its chemicals segment, which more than offset losses in its technical textiles and packaging segments.

"We performed well this quarter, led by our chemicals business. While we are dealing with a very uncertain global environment, we remain confident of a good finish to the year," the company's Chairman and Managing Director Ashish Bharat Ram said. 

The company's chemicals business revenue rose 23% on year to INR 16.7 billion during the quarter. Operating profit rose by 96% to INR 4.81 billion in the same period, the company said.

Meanwhile, the performance of its films and foil business fell marginally to INR 14.1 billion, while that of its technical textiles business fell about 11% to INR 4.7 billion. 

The company's consolidated revenue rose over 6% to INR 36.4 billion, but fell nearly 5% on a quarterly basis. The company's consolidated revenue fell short of analysts' expectations of INR 38.2 billion. SRF reported a nearly 56% jump in its earnings before interest and tax to INR 6.5 billion.

The company's total expenses during the quarter remained almost flat at INR 31.5 billion. Its expenses on materials consumed rose 2% to INR 19.3 billion. The company made a loss of INR 306 million on exchange rate fluctuations during the quarter, up 36% on year.  

VERTICALS

In its chemicals business segment, the fluorochemicals business reported record sales volumes for refrigerants, with prices of key refrigerants witnessing positive traction, the company said in a release. During the quarter, the business entered a strategic collaboration with The Chemours Company regarding certain fluoropolymers, which is expected to contribute to future growth. The specialty chemicals business also reported increased volumes for some of its products, while the introduction of new products also generated positive momentum. "Operational efficiency measures were implemented in both the fluorochemicals and specialty chemicals business segments, which contributed to an expanded margin profile," the company said.

The films and foil business, despite a marginal decline in revenue, recorded a 44% increase in its operating profits to INR 1.2 billion from INR 830 million on year. "As a result of GST (goods and services tax) reforms implemented this quarter, the market experienced reduced volumes attributable to resizing and reprinting activities. These adjustments are expected to yield positive outcomes in the near future," the company said.

The operating profit of the technical textiles business fell 41% to INR 420 million in the reporting quarter, the company said. The decline was mainly due to headwinds from aggressive import pricing of nylon tyre cord fabrics and belting fabrics from China and low demand for polyester industrial yarn.

The other businesses reported a 19% decline in revenue to INR 910 million, while operating profit fell 56% on year to INR 80 million. During the September quarter, the coated and laminated fabrics segments reported lower performance, the company said. 

CAPEX EXPANSION

The company revised its previously sanctioned capital expenditure to INR 7.45 billion from INR 5.95 billion owing to its "strategic collaboration" with The Chemours Company for the manufacture and supply of fluoropolymers and fluoroelastomers, and "in response to subsequent revisions in project scope." The project, it said, is expected to be completed in a sequential manner, with the final phase scheduled for completion by December 2026.

For Apr-Sept, SRF's consolidated net profit rose nearly 81% to INR 8.2 billion. Revenue rose over 8% to INR 74.6 billion. Monday, the company's shares closed 2% lower at INR 3,019.40 on the National Stock Exchange.  The company announced the results during market hours. End

Edited by Saji George Titus

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