SRF (SRF) Q3 25/26 earnings summary

Executive summary

• Gross operating revenue for Q3 FY26 rose 6.3% year-over-year to ₹3,712.5 crore, with EBIT up 23% to ₹653 crore and net profit up 60% to ₹433 crore, reflecting improved margins and operational efficiency.

• Chemicals business led growth with 22% revenue increase, driven by higher refrigerant volumes and improved efficiencies in both fluorochemicals and specialty chemicals.

• Persistent pricing pressure from Chinese competitors impacted specialty chemicals and technical textiles, but market share and volumes were protected.

• Performance Films and Foils revenue declined 3% year-over-year, but EBIT improved due to cost management and early signs of price recovery.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, with financials prepared in accordance with Ind AS.

Financial highlights

• EBITDA margin improved to 22.8% in Q3 FY26 from 19.9% in Q3 FY25; EBIT margin reached 18%.

• Net profit rose 60% year-over-year to ₹433 crore; consolidated net profit for Q3 FY26 was ₹432.66 crore.

• Chemicals business revenue increased from ₹1,496 crore to ₹1,825 crore year-over-year.

• Performance Films and Foils revenue at ₹1,342 crore, down 3% year-over-year, but EBIT rose to ₹95 crore.

• Basic and diluted EPS for Q3 FY26 at ₹14.60, up from ₹9.15 in Q3 FY25.

Outlook and guidance

• Expecting a strong Q4 due to pent-up orders in specialty chemicals and signs of revival in agrochemicals.

• CapEx guidance for FY27 remains robust, with major investments in new generation gas plants at Odisha, totaling ₹1,500–2,000 crore.

• Pharma intermediates targeted to grow from 10% to 20% of specialty chemicals business.

• No plans to expand HFC capacity due to Kigali Amendment quota regime; focus on maximizing current capacity.

• Ramp-up of aluminium foil exports and new product commercialization expected to drive growth in Performance Films & Foil.