SRF, Anti-dumping duty on R134a raises competitive barriers, improves pricing room

India has imposed an additional anti-dumping duty for five years on R134a refrigerant imports from China, citing unfairly low-priced dumping, which effectively increases the landed cost for Chinese suppliers and supports domestic manufacturers. The development is viewed as supportive for

because it is the only domestic supplier of R134a and operates ~20,000 MTPA capacity for this product, potentially improving pricing power and realization stability. From an earnings sensitivity standpoint, the article notes that every $1/kg change in domestic realization for R134a could impact SRF’s FY2027 EBITDA by ~2%, highlighting the materiality of pricing to profitability. In the market, SRF shares were up ~1.2% at ₹3,135.2, and the stock was up ~41.5% year-to-date in 2025 at the time of the report. Separately, SRF’s management reiterated that a demerger of the performance films and foils business may be considered once the segment reaches annual EBITDA of ~₹1,000–₹1,200 crore. The business reported EBIT of ₹356 crore for the full year and ₹259 crore in H1 FY2025, indicating progress toward that longer-term threshold. Disclaimer: This post is for informational purposes only and not a recommendation to buy or sell any securities. I, or my family, associates, or relatives, may have a financial interest in the securities mentioned.