SRF (SRF) Q3 25/26 earnings summary

Executive summary

• Gross operating revenue for Q3 FY26 rose 6.3% year-over-year to ₹3,713 crores, with EBIT up 23% to ₹653 crores and net profit up 60% to ₹433 crores; margins at 18%.

• Chemicals business revenue grew 22% year-over-year, driven by higher refrigerant volumes and operational efficiencies.

• Performance Films & Foil revenue declined 3% year-over-year, but EBIT improved due to cost management and price recovery in BOPET.

• Technical Textiles and Coated Fabrics faced margin pressure from Chinese imports and subdued domestic demand.

• Board approved unaudited financial results and a second interim dividend of ₹5 per share, totaling ₹148.21 crores.

Financial highlights

• EBITDA for Q3 FY26 increased 22.2% year-over-year to ₹847.5 crore; EBITDA margin improved to 22.8%.

• EBIT margin expanded to 18%, with EBIT up from ₹529 crores to ₹653 crores year-over-year.

• Net profit expanded by 60% year-over-year to ₹433 crores; PAT margin rose to 11.7%.

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

• Recognized ₹73 crores as exceptional item due to new labor code wage definition; ₹99 crores recognized as tax credit following a favorable ITAT order.

Outlook and guidance

• Strong pipeline in agrochemicals and pharma intermediates expected to drive growth in Q4 and beyond.

• CapEx guidance for FY27 remains robust, with major investments in new-generation gas plants at Odisha site (₹1,500–2,000 crores) and a new pharma intermediate plant at Dahej.

• Specialty chemicals expected to see a better Q4 due to pent-up orders, though Chinese pricing remains a challenge.

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

• Performance Films & Foil: US tariff uncertainty may impact supply chains; ramp-up of aluminium foil exports and new product launches expected.