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Informist, Wednesday, Jul. 22, 2026

NEW DELHI – SRF Ltd. expects an early recovery in agrochemical demand and see a stable global demand for refrigerants and propellants, and normalisation in packaging film demand over the coming quarters, while continuing to expand capacity across key businesses, according to its investor presentation released after the June quarter earnings.
 

In the specialty chemicals business, the company said early signs of recovery are emerging in agrochemical demand, though a broad-based pickup is yet to materialise. It expects recently launched pharmaceutical products to scale up over the medium term and plans additional product launches in the coming quarters. However, pricing pressure from Chinese competition and continued pressure on innovator agrochemical companies from generics remain key challenges. "Ongoing geopolitical tensions may continue to disrupt some global supply chains and drive volatility in raw material costs," the company said in its investor presentation. 
 

The company's revenues from the chemicals business rose nearly 26% to INR 23.15 billion and operating profit rose 27% on year to INR 6.38 billion for the three months ended June. The chemicals business contributed 46% to the overall revenue in the reporting quarter. 
 

For the fluorochemicals business, SRF expects a stable global demand-price environment for refrigerant gases and propellants while continuing to maximise hydrofluorocarbon production and expand capacity. The company said polytetrafluoroethylene growth will be driven by capacity ramp-up, a higher export mix and value-added products, supporting margin improvement. At the same time, it expects the chloromethanes business to remain range-bound in the near term and warned that prolonged tensions in the West Asia could keep raw material prices volatile. 

The performance films and foil business contributed over 40% to the overall revenue in the reporting quarter. The revenues from the performance films business increased over 42% to INR 20.17 billion and operating profit rocketed 149% on year to INR 3.50 billion.

In the performance films and foil business, the company expects global demand for biaxially oriented polyethylene terephthalate and biaxially oriented polypropylene films to return to normal as customers rationalise inventories. It also sees aluminium foil exports gaining traction, supported by customer approvals in higher-value applications. Newly commissioned metallisers in Thailand and South Africa, along with an offline coating machine in India, are expected to support performance. Regionally, SRF expects stable demand in South Africa, while Thailand could face pressure from higher ocean freight costs and elevated customer inventories, and Hungary may witness seasonal demand weakness during August, the company said in its investor presentation. 

In technical textiles, the company expects tyre cord fabric demand to remain flat to marginally positive, with the commissioning of a new dipping line helping improve market share over time. Belting fabrics are expected to benefit from stronger exports while domestic demand remains stable. "Strong demand in the seatbelt segment is expected to offset the seasonal slowdown in geotextiles during the monsoon; PIY(Polyester Industrial Yarn) volumes are expected to remain stable," the company said in the presentation. 

Technical textiles revenues climbed to INR 5.97 billion from INR 4.67 billion for the June quarter last year. The operating profit of the technical textiles business rose 186% on year to INR 1.08 billion in Apr-Jun. The technical textiles business contributed nearly 11.8% to the overall revenue in the reporting quarter. 

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 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

Reported by Gunjan Rajput 

Edited by Akul Nishant Akhoury

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