Earnings Review
SRF Q1 PAT beats estimates, jumps 76% on margin expansion
This story was originally published at 16:27 IST on 22 July 2026
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--SRF Apr-Jun consol net profit INR 7.59 bln
--Analysts saw SRF Apr-Jun consol net profit at INR 4.84 bln
--SRF Apr-Jun consol revenue INR 50.33 bln
--SRF Apr-Jun consol net profit INR 7.59 bln vs INR 4.32 bln year ago
--SRF Apr-Jun consol revenue INR 50.33 bln vs INR 38.19 bln year ago
--SRF Apr-Jun consol chemical ops sales INR 23.15 bln vs INR 18.39 bln yr ago
--SRF Q1 performance films ops sales INR 20.17 bln vs INR 14.18 bln yr ago
--SRF Apr-Jun technical textile ops sales INR 5.97 bln vs INR 4.67 bln yr ago
--SRF Apr-Jun consol operating margin 20.82% vs 17.17% year ago
--SRF to pay INR 5 per share interim dividend
--SRF interim dividend record date Jul 28
--SRF to set up BOPET thick film line for INR 2.50 bln
--SRF's new BOPET thick film line to have capacity of 25,000 tn per annum
--SRF Apr-Jun consol EBIT INR 11.16 bln vs INR 6.94 bln year ago
--SRF Q1 chemical ops operating profit INR 6.38 bln vs INR 5.03 bln yr ago
--SRF Q1 performance films ops operating profit INR 3.50 bln vs INR 1.40 bln
--SRF Q1 technical textile ops operating profit INR 1.08 bln vs INR 380 mln
--SRF: Applied for 528 patents as of Jun 30, received patents 159 till date
By Gunjan Rajput
NEW DELHI – SRF Ltd. reported a sharp rise in consolidated net profit for the June quarter, driven by strong growth across its chemicals, packaging films, and technical textiles businesses and by margin expansion. The company's revenue and total income rose at a similar pace for the reporting quarter. This marks the seventh consecutive quarter of year-on-year growth in net profit. The growth in revenue was the strongest in 16 quarters.
SRF's consolidated net profit surged nearly 76% on year to INR 7.59 billion in Apr-Jun, sharply exceeding analysts' consensus estimate of INR 4.84 billion. The company's consolidated revenue rose nearly 32% on year to INR 50.33 billion from INR 38.19 billion a year ago. The June quarter revenue also surpassed the Street's estimate of INR 42.36 billion. The company's operating margin expanded to 20.82% in the reporting quarter from 17.17% a year ago.
Among segments, revenues from the chemicals business rose nearly 26% to INR 23.15 billion from INR 18.39 billion a year ago. Revenues from the performance films business increased over 42% to INR 20.17 billion from INR 14.18 billion a year ago. Technical textiles revenues climbed to INR 5.97 billion from INR 4.67 billion for the June quarter last year.
"Even as we navigate an uncertain global environment, we remain confident about the opportunities ahead and our long-term growth journey," SRF Chairman and Managing Director Ashish Bharat Ram said in the investor presentation. "While inventory gains provided some support during the quarter, the performance was fundamentally driven by the strong momentum across our businesses."
The operating profit of SRF's chemical business rose 27% on year to INR 6.38 billion for the three months ended June. In the segment, the specialty chemicals business delivered a steady performance for the quarter amid the evolving global pricing trends, industry overcapacity in China, and ongoing geopolitical developments. "The Fluorochemicals Business reported a robust performance, supported by strong sales of Refrigerants and Propellants and healthy demand for Chloromethanes and Fluoropolymers," the company said in its investor presentation.
The operating profit of SRF's performance films and foils business rocketed 149% on year to INR 3.50 billion. The June quarter saw the highest-ever packed production in the films and foils business, the company said, adding that continued focus on sustainable solutions and value-added products improved the product mix, supported profitability, and strengthened customer relationships.
The operating profit of the company's technical textiles business rose 186% on year to INR 1.08 billion in Apr-Jun. "The Technical Textiles Business maintained steady momentum during the quarter, supported by stable demand and higher margins for Tyre Cord Fabrics and strong domestic and export demand for Belting Fabrics, despite ongoing competitive pressures from Chinese exports," according to the investor presentation.
SRF's other business reported 11% year-on-year rise in revenues for the June quarter to INR 1.05 billion. The operating profit of this business rose 50% on year to INR 200 million. Its consolidated earnings before interest and tax rose nearly 61% on year to INR 11.16 billion. As of Jun. 30, the company had applied for a total of 528 patents. To date, it has been granted 159 patents globally.
"The Company is also undertaking a series of smaller capital expenditure projects within the Specialty Chemicals Business aimed at enhancing capacity and operational efficiencies through debottlenecking initiatives, particularly in the Agrochemicals portfolio," it said in the investor presentation.
SRF's board of directors also approved capital expenditure of INR 2.50 billion to set up a biaxially oriented polyethylene terephthalate thick film line in India. The proposed capacity is 25,000 tonnes per annum and it is expected to be added within 24 months from the date of approval. The project will be funded through a mix of debt and internal accruals. The company said biaxially oriented polyethylene terephthalate thick film is a specialised product used in industrial and electronic applications. "Since it is a new substrate, it does not have the same cycle as commodity thin films, helping us better manage the cyclicality," the company said in a separate exchange filing. "Limited domestic capacity in India further reduces volatility."
The company announced an interim dividend of INR 5 per share; the record date for the dividend is Jul. 28. The company detailed its June quarter results during market hours. Its shares ended at INR 2,867.20 on the National Stock Exchange, down 2.4% from Tuesday. End
Edited by Rajeev Pai
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