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Informist, Monday, Jul. 20, 2026

 

By Gunjan Rajput

 

NEW DELHI – SRF Ltd. is expected to report a year-on-year rise in its consolidated net profit and revenue for the June quarter, driven by higher refrigerant gas prices and better performance in the packaging films business. However, weak demand for the specialty chemicals business is likely to limit the pace of growth, according to analysts. 

 

The company is expected to report a consolidated net profit of INR 4.84 billion, up over 12% from a year ago, according to the average estimate from 10 brokerages. Revenue is seen rising nearly 11% on year to INR 42.36 billion, while earnings before interest, tax, depreciation and amortisation are expected to increase over 6% to INR 9.03 billion.

On a sequential basis, net profit, revenue, and EBITDA are expected to decline over 18%, over 8%, and over 23%, respectively. "On a QoQ (quarter-on-quarter) basis, all three metrics should moderate, given typical seasonality," Kotak Securities said.

The highest estimate for the company's net profit is at INR 5.84 billion from ICICI Securities Ltd., while the lowest estimate is at INR 1.88 billion from HDFC Securities Ltd. ICICI Securities also has the highest revenue estimate at INR 46.71 billion, whereas HDFC Securities has the lowest at INR 37.27 billion. For EBITDA, ICICI Securities has the highest estimate at INR 10.23 billion, while HDFC Securities has the lowest at INR 5.23 billion.

SRF is a specialty chemicals manufacturer with businesses spanning across chemicals, packaging films, and technical textiles. The chemicals business, which contributes nearly half of SRF's revenue, is expected to remain the biggest earnings driver. Higher refrigerant gas realisations are expected to support growth in the segment. Kotak Securities expects chemicals revenue to rise 17.5% from a year ago, while Nuvama estimates an 8.6% increase. However, brokerages expect the specialty chemicals business to remain weak due to soft demand from the agrochemical segment. PhillipCapital also expects the specialty chemicals business to remain under pressure due to competition from Chinese manufacturers and continued supply disruptions from the West Asia.

The packaging films business is expected to perform better than a year ago. ICICI Securities expects higher spread and inventory gains to support earnings. Motilal Oswal Financial Services Ltd. expects margins to improve, while Prabhudas Lilladher Pvt. Ltd. expects the business to benefit from a decline in imports. Nuvama expects packaging films revenue to rise 20% on year, with earnings before interest and taxes margin improving by 190 basis points. "The packaging films segment may also benefit from a short-term increase in spreads in the backdrop of the Iran war," Kotak Securities said.

 

The technical textiles business is expected to remain steady. ICICI Securities expects technical textiles EBIT to rise 93.1% from a year ago, while PhillipCapital expects the business to remain steady.

 

Investors will watch management's outlook on refrigerant gas demand and Hydrofluorocarbon pricing, recovery in the specialty chemicals business, and the impact of the West Asia conflict on exports and raw material supplies.

SRF will detail its earnings Wednesday. On Monday, shares of the company closed at INR 2,871.70 on the National Stock Exchange, marginally down. The shares have risen up nearly 6% since the company reported its March quarter results.

 

Out of the 12 brokerage reports on the company available with Informist, 10 have a 'buy' recommendation on the stock with an average target price of INR 3,301. This is nearly 15% higher than the current market price. One brokerage has a ‘hold' recommendation on the stock with a target price of INR 3,245. One brokerage has a ‘sell' recommendation with the target price of INR 2,579.

 

The following are the June quarter earnings estimates for SRF from 10 brokerages in descending order of the estimate of net profit in INR billion:

 

Brokerage Firm	Net Sales	Net Profit	EBITDA
ICICI Securities Ltd.	46.71	5.84	10.23
Kotak Securities Ltd.	44.18	5.72	10.21
Motilal Oswal Financial Services Ltd.	44.72	5.54	10.04
Prabhudas Lilladher Pvt. Ltd.	42.81	5.30	9.51
JM Financial Institutional Securities Pvt Ltd	42.82	5.12	9.27
Nuvama Wealth Management Ltd.	41.55	4.96	9.48
IDBI Capital Market Services Ltd	40.55	4.95	8.97
Elara Securities (India) Pvt. Ltd.	43.74	4.89	9.02
PhillipCapital (India) Pvt Ltd	39.26	4.24	8.32
HDFC Securities Ltd	37.27	1.88	5.23
Average	42.36	4.84	9.03

 

End

 

Edited by Himanshi Gupta

 

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