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SRF Q2FY27 revenues grew 36% YoY

ICICIdirect Research 22 Oct 2026 DISCLAIMER

News: SRF Q2FY27 revenues grew 36% YoY to ₹4803.3 crore driven by growth across segments, Chemicals business (42% of the revenues) saw growth of 25% YoY to ~₹2080 crore, Packaging films (43% of revenues) grew 51% YoY to ₹2,122.4 crore and Technical Textiles (12% of revenues) reported growth of 25% YoY to ₹595 crore. Consolidated EBITDA stood at ₹946 crore, up 22% YoY, translating to margins of 19.3%, down ~197 bps YoY mainly due to chemical business EBIT which stood at 25%, down ~350 bps YoY. PAT for the quarter stood at ₹509 crore, up 31% YoY.

View: Although revenues growth was strong, margins were below-par, pulled down by agrochemicals sub-segment (impacted by Chinese dumping) of specialty chemicals even as fluorochemicals business continued its strong momentum on the back of higher volumes and realizations of HFCs in the domestic and exports market. We expect margin improvement to pick up momentum in H2. On the capex front, the company has announced a capex of ₹600 crore to establish a battery-grade Aluminum foil manufacturing facility(capacity of 12000 MTPA) to cater to both lithium-ion (Li-ion) and sodium-ion (Na-ion) battery applications with Phase I is expected to be completed by September 2028 will be a key monitorable for the company’s future trajectory. We will get more clarity on business performance and planned capex in the upcoming earnings call.

Impact: Positive

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