$SRF

$SRF SRF is one of India's highest-quality specialty chemical companies with leadership in specialty chemicals, fluorochemicals, packaging films, and technical textiles. After a difficult FY24–FY25 due to global destocking and Chinese competition, earnings have shown a strong recovery in FY26 and the momentum has continued into FY27. Fundamental Positives Strong earnings recovery: FY26 revenue grew to around ₹15,800 crore, while PAT increased about 47% year-on-year to ₹1,835 crore. Excellent Q1 FY27: Revenue grew nearly 32% YoY, and net profit increased around 30% QoQ, indicating demand recovery across key businesses. Specialty chemicals revival: Agrochemical inventory correction is easing, improving export demand. Large capex for future growth: The company has expanded its Odisha fluorochemical project to approximately ₹2,300 crore, targeting next-generation refrigerants and high-value fluorochemicals. Strong balance sheet, experienced management and global customer base. Key Risks Chinese competition can pressure chemical prices. Packaging films remain a cyclical business. Large capex execution needs to deliver expected returns. Global recession could impact export demand. Investment Outlook Long Term (2–5 years): Positive The structural story remains intact because: India continues to gain market share in specialty chemicals. SRF is investing in higher-margin fluorochemicals. Earnings cycle appears to be improving. Technical View Trend: Bullish As long as the stock holds above major support zones, the probability favors higher levels over the medium term. Fresh buying is generally better on corrections rather than after sharp rallies.