SRF (SRF) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 delivered strong revenue and profit growth, led by Chemicals and Performance Films & Foil, while Technical Textiles and Others faced declines.

• Gross operating revenue reached ₹3,818.6 crore, with profit after tax up 71.4% year-over-year to ₹432.3 crore.

• Strategic investments and capacity expansions were approved to support future growth.

• Interim dividend of ₹4 per share was approved, totaling ₹119 crore outflow.

• Market leadership maintained in core segments, with ongoing focus on R&D, sustainability, and operational efficiency.

Financial highlights

• Chemicals business revenue grew 24.1% year-over-year to ₹1,838.9 crore; EBIT up 64.1% to ₹502.9 crore.

• Performance Films & Foil revenue increased 6.1% to ₹1,418.2 crore; EBIT up 61.6% to ₹140.2 crore.

• Technical Textiles revenue at ₹466.6 crore; EBIT down 44.4% to ₹37.6 crore.

• EBITDA margin improved to 22.3% in Q1 FY26 from 18.6% in Q1 FY25.

• Basic and diluted EPS rose to ₹14.58 from ₹8.51 year-over-year.

Outlook and guidance

• Cautiously optimistic for FY26, maintaining original growth guidance for the chemicals business.

• CapEx plans of ₹2,400–2,500 crore for FY26, with major investments in agrochemical intermediates and BOPP film facility.

• Specialty Chemicals expected to see gradual recovery in agrochemicals and growth from new pharma intermediates.

• Performance Films & Foil to benefit from favorable domestic BOPP demand and new capacity additions.

• Expectation of continued strong HFC pricing and stable to higher margins in key segments.