Earnings Review
Chemical ops drive SRF Q3 PAT; beats Street expectations
This story was originally published at 17:25 IST on 20 January 2026
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--SRF Oct-Dec consol net profit INR 4.33 bln
--Analysts saw SRF Oct-Dec consol net profit at INR 4.14 bln
--SRF Oct-Dec consol revenue INR 37.13 bln
--Analysts saw SRF Oct-Dec consol revenue at INR 37.17 bln
--SRF Oct-Dec consol net profit INR 4.33 bln vs INR 2.71 bln year ago
--SRF Oct-Dec consol revenue INR 37.13 bln vs INR 34.91 bln year ago
--SRF got tax write back of INR 991.20 mln in Oct-Dec
--SRF Q3 consol PAT includes one-time cost INR 732.4 mln due to labour codes
--SRF Apr-Dec consol net profit INR 12.53 bln vs INR 7.25 bln year ago
--SRF Apr-Dec consol revenue INR 111.71 bln vs INR 103.80 bln year ago
--SRF Q3 consol chemical ops sales INR 18.25 bln vs INR 14.96 bln yr ago
--SRF Q3 consol performance films ops sales INR 13.42 bln vs INR 13.85 bln
--SRF Q3 consol technical textiles ops sales INR 4.54 bln vs INR 5.10 bln
--SRF to pay INR 5 per share interim dividend
--SRF interim dividend record date is Jan 27
--SRF Oct-Dec consol EBIT INR 6.53 bln vs INR 5.29 bln year ago
--SRF board OKs appointing Samir Kashyap as President, CFO from Jan 27
--SRF Q3 chemicals ops operating profit INR 4.96 bln vs INR 3.64 bln yr ago
--SRF Q3 performance films, foil gross profit INR 950 mln vs INR 900 mln
--SRF Q3 technical textiles ops gross profit INR 450 mln vs INR 590 mln
--SRF: Applied for 506 patents as of Dec 31, received 153 patents till date
--SRF: To invest INR 1.80 bln for new pharma intermediate plant at Dahej
--SRF: Specialty Chem ops in Q3 hit as agro majors deffered some pdts offtake
--SRF: Specialty Chem ops in Q3 hit on pricing pressure from chinese cos
--SRF: Specialty Chem demand from Agro majors to improve sharply from Q4
--SRF: Specialty chem ops raw material prices appear to have bottomed out
--SRF: Chemical ops growth in Q3 aided by higher volume of hydrofluorocarbons
--SRF: Tariff uncertainty in US may lead to volatility for fluorochem ops
--SRF: Pricing pressure from Chinese cos may continue for Specialty Chem ops
By P. Madhu Kumar and Ashutosh Pati
MUMBAI – SRF Ltd. Tuesday reported a sharp year-on-year jump in its consolidated net profit for the December quarter, helped by robust profitability in its core chemical business. The company's bottom line also surpassed the consensus estimate, though its top line missed the Street view by a slight margin due to a lag in sales of its technical textiles and packaging foils during the quarter. A tax write-back of INR 991.20 million also helped the company to report a significant jump in its bottom line.
The speciality chemicals maker reported a nearly 60% on-year and 11% on-quarter increase in net profit to INR 4.33 billion in Oct-Dec, above analysts' estimate of INR 4.14 billion. The company's sales for the quarter came in at INR 37.13 billion, up over 6% on-year and 2% on-quarter. Analysts had projected the company's top line to be INR 37.17 billion.
The company's bottom line includes a one-time cost of INR 732.4 million, pursuant to the introduction of new labour codes in November.
SRF's chemical business was the most profitable segment of the company, with sales of INR 18.25 billion in the quarter, up from INR 14.96 billion in the same quarter a year ago.
The company's other segments, such as technical textiles and performance films and foils, reported a fall in revenue in the December quarter. The revenue of the technical textile business fell to INR 4.54 billion from 5.10 billion a year ago and the revenue of the performance films and foil business fell to INR 13.42 billion from INR 13.85 billion a year ago.
SRF's chemical business reported an operating profit of INR 4.96 billion, up over 36% from INR 3.64 billion a year ago. The performance films and foil segment reported a gross profit of INR 950 million in the December quarter, up from INR 900 million a year ago. The technical textiles segment's gross profit fell to INR 450 million from INR 590 million a year ago.
The company's consolidated earnings before interest and taxes rose to INR 6.53 billion in the December quarter from INR 5.29 billion a year ago. The company declared an interim dividend of INR 5 per share with a record date of Jan. 27. For the nine months ended December, the company's net profit rose 73% on year to INR 12.53 billion, while its revenue grew 8% to INR 111.71 billion.
SRF has appointed Samir Kashyap as president and chief financial officer, effective Jan. 27.
In its updates, SRF said it has filed 506 patents as of Dec. 31, with 153 patents granted to date. The company will invest INR 1.8 billion for setting up a new pharma intermediate plant at Dahej, Gujarat, it said in a release.
The company's speciality chemicals business was impacted in the December quarter, as agro majors deferred offtake for some key products due to continued pricing pressure from Chinese competitors. However, the company said demand from agro majors is expected to improve significantly in the March quarter, while pricing pressure from Chinese competitors is expected to continue. It added that prices of raw materials in the speciality chemicals business "appear to have bottomed out."
The fluorochemicals business, which falls under the company's chemicals business, delivered strong performance in the December quarter, driven by higher volumes and realisations of hydrofluorocarbons in both domestic and export markets.
Tuesday, the company's shares closed 2.7% lower at INR 2,883.20 on the National Stock Exchange. The company declared the December quarter results during market hours. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Saji George Titus
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