SRF Ltd. Share Price

SRF Q2 revenue rises 35%, chemicals remain weak

SRF Ltd (

) reported 35% YoY revenue growth to ₹4,904 crore in Q2FY27. The key concern remains specialty chemicals, where recovery is taking longer than expected despite management maintaining its growth guidance. SRF’s Q2 performance was mixed. Revenue growth was supported by fluorochemicals, while the films & foil and technical textiles businesses delivered strong growth. Films & foil revenue rose 51% YoY, while technical textiles grew 25% YoY. However, EBITDA of ₹945 crore missed Street expectations and margins fell to around 21%. What matters is not the revenue growth but the quality of that growth. In the chemicals segment, operating EBIT grew only 10%, much slower than revenue. Pricing pressure in specialty chemicals, Chinese oversupply and higher input costs continue to weigh on profitability. This explains why investors remain cautious even as management expects the chemicals business to deliver revenue growth at the higher end of its 15-20% guidance range for FY27. SRF's non-chemical businesses are currently helping offset weakness in specialty chemicals. Films & foil margins improved on record production and value-added products, while technical textiles benefited from export demand and new customer additions. These segments are supporting earnings, but specialty chemicals remains the largest variable for valuation and future profit growth. The company has also approved a ₹600 crore aluminium foil investment aimed at battery and advanced packaging applications. What to watch next is whether specialty chemicals sees a meaningful recovery in volumes and realizations during H2FY27. A pickup in agrochemicals and pharmaceutical intermediates could improve sentiment, but margin recovery remains the key monitor. View: Earnings recovery depends mainly on specialty chemicals. Until margins improve meaningfully, investor confidence is likely to remain tied to execution in that business.

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SRF Ltd – Support Breakdown & Recovery Watch

SRF is trading near ₹2,327 after a sharp decline below key support zones. The chart indicates continued selling pressure, while the recent bounce appears weak. Momentum remains bearish until price reclaims important resistance levels. 🔎 Technical View: • Bearish short-term trend • Support breakdown with weak recovery • Momentum remains negative 🔑 Key Levels: • Support: ₹2,303–₹2,245 • Major Support: ₹2,188 • Resistance: ₹2,360–₹2,418 🚀 Upside Levels: ₹2,418 | ₹2,475 | ₹2,533 📉 Risk: Sustained trading below ₹2,303 may extend the downside towards ₹2,245 and ₹2,188. 📈 Trading View: A sustained move above ₹2,418 may signal recovery. Watch volume and price action for confirmation. ⚠️ For educational purposes only. Not a buy/sell recommendation. — AALGO BREATHS 📊

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SRF's profit rises 31%, but margins hit an eight-quarter low

SRF Limited (SRF) reported Q2 FY27 consolidated revenue of ₹4,904 crore, up 35% year-on-year. Net profit rose 31% to ₹509 crore, but EBITDA margin fell to 19.3% from 21.3%. This is why I would not judge the quarter by profit growth alone. EBITDA increased 22% to ₹946 crore, which means earnings grew more slowly than revenue. That gap matters. If sales continue to rise faster than operating profit, the company may be facing cost pressure or a less profitable sales mix. The segment numbers show a mixed picture. Performance Films & Foil revenue surged 51% to ₹2,122 crore, with operating profit up 73%. Chemicals revenue increased 25% to ₹2,079 crore, but operating profit grew only 10%. That difference is worth watching. Stronger sales in chemicals have not translated into equally strong operating-profit growth. SRF has also approved approximately ₹600 crore for a battery-grade aluminium foil facility with planned annual capacity of 12,000 tonnes. Phase I is expected by September 2028, with Phase II by September 2030. This could give SRF exposure to battery and energy-storage supply chains. But the returns will depend on utilisation, customer demand and the economics of the new facility. The investment itself does not guarantee attractive returns. My view: SRF is growing, but margin recovery matters more than another quarter of headline revenue growth. I would watch whether chemicals profitability improves, whether the films business sustains its performance and how the battery-foil investment progresses. My stance: The growth story remains credible, but I would want evidence of margin stabilisation before becoming more positive.

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SRF Ltd. Quarterly Results Analysis-Q2FY2027

Financial performance and key operating metrics (Consolidated) : Operating Revenue for Q2FY27 is Rs. 4,904 Crs., 34.72% growth YoY, Total Income is Rs. 4,929 Crs., 34.46% growth YoY, Gross Profit is Rs. 2,304 Crs., 23.15% growth YoY, EBITDA is Rs. 1,034 Crs., 24.5% growth YoY, However, EBITDA Margin is 20.98% declined by 168 Basis points YoY, PBT Rs. 671 Crs., 29.78% growth YoY, PAT Rs. 509 Crs. 31.16% growth YoY. On QoQ basis Op. Revenue is down by 2.56%, Total Income is down by 2.72%, Gross Profit is down by 10.55%, EBITDA is down by 24.66%, PBT is down by 31.47% and PAT is also down by 32.91%. The Chemicals Business reported a Revenue of Rs. 2,079 Cr, 24.72% growth YoY, Operating Profit of Rs. 528 Cr., 9.77% growth YoY. The Fluorochemicals Business delivered robust refrigerant sales volumes, supported by positive pricing momentum across key products, while maintaining its leadership position across primary markets. The Performance Films & Foil Business reported a Revenue of Rs. 2,122 Cr, 50.71% growth YoY, Operating Profit of Rs. 206 Cr., 73.11% YoY. During Q2FY27, the Business achieved its highest-ever packed production of films. However, Q2 demand was moderated by inventory build-up following heightened buying activity amid the volatility witnessed in Q1. Demand for Aluminium foil, meanwhile, remained healthy during the quarter. The Technical Textiles Business reported a Revenue of Rs. 595 Cr, 25.53% growth YoY, Operating Profit of Rs. 72 Cr., 71.43% YoY. The Business delivered a steady performance during the quarter, supported by healthy demand and improved margins.

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SRF Hits 52-Week Low After Q2 Profit Misses Estimates

SRF shares fell 5.5% to Rs 2,178.30 on the NSE on Thursday morning, hitting a 52-week low after September quarter results where revenue beat expectations but profit and margins fell short. Revenue rose 35% year on year to Rs 4,904 crore, ahead of the Rs 4,695 crore estimate. Net profit grew about 31% to Rs 509 crore, but that missed the Rs 598 crore estimate by roughly 15%, and EBITDA of Rs 945 crore also came in below the Rs 1,055 crore expected. The weakness was in chemicals, where revenue rose 25% to Rs 2,079 crore but operating profit grew only 10% to Rs 528 crore. Performance films and foil did better, with revenue up 51% and operating profit up 73% to Rs 206 crore. The board also approved about Rs 600 crore for a battery-grade aluminium foil plant of 12,000 tonnes a year. Chemicals is SRF’s largest profit contributor, so slower profit growth there weighs on the stock even when films and textiles grow strongly. The market is reacting to the gap between sales growth and profit, since strong sales did not reach the bottom line. The battery foil plant adds a new growth leg, but it would start only in September 2028, so it does little for near-term earnings. The stock is now at its lowest level in 52 weeks, against a high near Rs 3,239, a fall of about a third from the peak, with a market cap of roughly Rs 65,000 crore. Investors will watch whether chemicals margins recover in the coming quarters. Disclosure: Palash Kag, Proprietor, Sarathi Research (SEBI Reg. No. INH000012740). No position held in SRF. This article is for educational and informational purposes only and does not constitute investment advice or a recommendation to buy, sell, or hold any security. Please consult a registered advisor before making investment decisions.

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SRF’s Q2 consolidated net profit rises 31%

The company has reported a 20.91% rise in its net profit at Rs 438.48 crore for the quarter ended September 30, 2026, as compared to Rs 362.66 crore for the same quarter in the previous year. Total income increased by 33.07% to Rs 3,836.39 crore for Q2FY27 as compared to Rs 2,883.01 crore for the corresponding quarter of the previous year. Outlook: - Chemicals Business: Revenue grew 25% to Rs. 2,079 crore, but segment EBIT rose by just 10% to Rs. 528 crore, reflecting a drop in segment margin from roughly 29% to 25.4%. - On a quarter-on-quarter (QoQ) basis, net profit fell 32.9% from Rs. 758.87 crore in Q1 FY27. - Complementing its latest performance results, the company’s Board sanctioned a ₹600 crore capex for a new 12,000 MTPA battery-grade aluminium foil plant in Madhya Pradesh. This facility will strategically cater to the lithium-ion and sodium-ion battery markets, with development structured across two phases extending through 2028 and 2030.

Disclosure : I do not hold any position in the mentioned stock. This is only for educational purpose.

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