Quarterly Financial Results
SRF Reports Record Q1 FY2026-27 Performance; Revenue Rises 32%, PAT Surges 76%, ₹5 Interim Dividend Declared
NSE
SRF
BSE
503806
SRF Limited reported its best-ever quarterly performance in Q1 FY27, driven by broad-based growth across all business segments. Consolidated revenue increased 32% YoY to ₹5,033 crore, while PAT grew 76% to ₹759 crore. The Board also approved an interim dividend of ₹5 per share and sanctioned ₹250 crore towards expanding the Performance Films & Foil business.
PRICE-SENSITIVE TRIGGER
Event: Announcement of Unaudited Consolidated Financial Results for Q1 FY2026-27.
Type: Quarterly Financial Results
Impact: Positive
Immediate Effect: The company delivered record quarterly earnings across businesses, announced fresh capacity expansion in Performance Films, and declared an interim dividend, reflecting strong operational momentum and healthy cash generation.
Metrics:
Key Financial Metrics:
- Revenue: ₹5,033 crore (▲32% YoY)
- EBIT (Operational Earnings): ₹1,116 crore (▲61% YoY)
- PAT: ₹759 crore (▲76% YoY)
Segment Performance:
- Chemicals Business
- Revenue: ₹2,315 crore (▲26% YoY)
- Operating Profit: ₹638 crore (▲27% YoY)
- Performance Films & Foil
- Revenue: ₹2,017 crore (▲42% YoY)
- Operating Profit: ₹350 crore (▲149% YoY)
- Technical Textiles
- Revenue: ₹597 crore (▲28% YoY)
- Operating Profit: ₹108 crore (▲186% YoY)
- Other Businesses
- Revenue: ₹105 crore (▲11% YoY)
- Operating Profit: ₹20 crore (▲50% YoY)
Corporate Actions:
- Interim Dividend: ₹5 per equity share
Capital Expenditure:
- Board approved ₹250 crore investment to establish a new BOPET Thick Film Line in India.
- Additional debottlenecking investments approved for the Specialty Chemicals business.
Highlight:
- SRF delivered its highest-ever quarterly financial performance with strong earnings growth across all major business segments.
What Happened ?
SRF reported record consolidated financial results for Q1 FY27, supported by strong execution across Chemicals, Performance Films & Foil, Technical Textiles and Other Businesses.
Growth was driven by improved product mix, strong domestic and export demand, operating leverage and higher profitability across businesses. Alongside the results, the Board approved fresh capital expenditure for expanding film manufacturing capacity and declared an interim dividend of ₹5 per share.
key details
Key Highlights:
- Consolidated revenue grew 32% YoY to ₹5,033 crore.
- Operational earnings (EBIT) increased 61% YoY.
- Profit after tax rose 76% YoY, reflecting significant operating leverage.
- Performance Films & Foil delivered record quarterly performance supported by strong production and improved value-added product mix.
- Chemicals business continued to benefit from healthy demand in refrigerants, chloromethanes and fluoropolymers.
- Technical Textiles reported higher profitability driven by improved margins in tyre cord fabrics and strong export demand.
- Coated and Laminated Fabrics business maintained healthy margins and domestic market leadership.
- Board approved ₹250 crore investment for a new BOPET Thick Film production line.
- Specialty Chemicals business will undertake additional capacity enhancement and debottlenecking projects.
- Patent portfolio expanded to 528 applications, with 159 patents granted globally.
Why It Matters:
- The results demonstrate broad-based growth rather than dependence on a single business segment.
- Capacity expansion, sustained profitability and continued investment in specialty chemicals and advanced materials strengthen SRF’s long-term competitive position.
Risk Analysis
Summary:
- Although operational performance remains robust, SRF continues to operate in industries exposed to changing global pricing trends, industry overcapacity in certain chemical segments and geopolitical uncertainties.
Key Risks:
- Global chemical pricing volatility.
- Industry overcapacity, particularly in China.
- Raw material cost fluctuations.
- Export demand and geopolitical risks.
- Execution risks associated with ongoing capital expenditure projects.
Worst Case:
- A prolonged decline in global chemical pricing or weaker international demand could compress margins despite healthy volume growth.
Risk Level: Medium
Company Commentary
- Chairman & Managing Director Ashish Bharat Ram described the quarter as the company’s best-ever quarterly performance.
- Management attributed growth to the resilience of SRF’s diversified business portfolio rather than one-off factors.
- The company remains confident about its long-term growth opportunities despite an uncertain global environment.
- Continued investments in manufacturing capacity, operational efficiency and value-added products are expected to support future growth.
Official Exchange Filing: SRF Limited
