SRF Ltd (SRF)
🎯 Key Takeaways
- SRF Ltd is transitioning from a mature chemical manufacturer into a higher-growth specialty chemicals and advanced materials company, evidenced by strong segmental expansion in Performance Films & Foil and Technical Textiles, which now contribute significantly to revenue and EBIT. Management is actively investing in capacity expansion, including a ₹250 crore BOPET line, signaling strategic acceleration beyond commodity chemicals.
- Revenue grew 9.1% QoQ to ₹5,033 in Q1FY27.
- ⚠️ 1) The company continues to face a residual tax demand of Rs 9.46 crores from FY22-23, with legal recourse still under evaluation, posing potential fo
📖 The Story
SRF Ltd is transitioning from a mature chemical manufacturer into a higher-growth specialty chemicals and advanced materials company, evidenced by strong segmental expansion in Performance Films & Foil and Technical Textiles, which now contribute significantly to revenue and EBIT. Management is actively investing in capacity expansion, including a ₹250 crore BOPET line, signaling strategic acceleration beyond commodity chemicals. While overall revenue growth is robust, profitability improvements and margin expansion suggest operational leverage is materializing, particularly in high-value segments.
📰 What's Happening
In Q1FY27, SRF reported consolidated revenue of ₹5,033 crores, up 32% YoY, with PAT surging 76% to ₹759 crores, driven by 42% growth in Performance Films & Foil and 28% growth in Technical Textiles. The Chemicals segment contributed 46% of revenue and 57% of EBIT, underscoring its continued profitability despite lower growth. Management approved a ₹250 crore capex investment for a BOPET thick film line to enhance capacity in specialty films. An interim dividend of ₹5 per share was declared, reflecting confidence in cash flow generation and commitment to shareholder returns.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 3,640 | 3,713 | 4,615 | 5,033 |
| Operating Profit | 562 | 563 | 806 | 1,014 |
| OPM % | 15.4% | 15.2% | 17.5% | 20.1% |
| Net Profit | 388 | 433 | 582 | 759 |
| EPS | ₹13.10 | ₹14.60 | ₹19.63 | ₹25.60 |
Revenue has grown consistently over the past four quarters, rising from ₹3,640 crores in Sep 2025 to ₹5,033 crores in Jun 2026, with operating margins expanding from 15.4% to 20.1% and net profit margins improving from 10.6% to 15.1%. This growth is not just volume-driven — EBITDA grew 61% YoY, and PAT margin expansion to 15.1% indicates operational efficiency and pricing power. The company is converting top-line growth into disproportionate profit gains, supported by favorable segment mix and cost discipline.
🔮 Management Outlook & What's Next
Management highlighted the Board-approved ₹250 crore investment in a BOPET thick film line to boost capacity and efficiency in specialty films, with ongoing capex in Specialty Chemicals to enhance capabilities. The company is focused on scaling high-growth segments like Performance Films & Foil and Technical Textiles, which are outpacing the Chemicals business in both revenue growth and margin contribution. There is no formal long-term guidance provided, but capital allocation appears targeted at sustaining segmental leadership and margin expansion.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 297 | 297 | 297 | 297 |
| Reserves | 11,700 | 12,329 | 12,966 | 13,745 |
| Borrowings | 5,246 | 4,726 | 4,605 | 5,004 |
| Total Liabilities | 21,077 | 21,557 | 22,261 | 24,147 |
| Fixed Assets | 13,349 | 13,607 | 13,822 | 13,926 |
| Investments | 579 | 827 | 537 | 687 |
| Total Assets | 21,077 | 21,557 | 22,261 | 24,147 |
The balance sheet shows stable equity of ₹297 crores with reserves growing from ₹12,329 crores (Mar 2025) to ₹13,745 crores (Mar 2026), indicating strong retained earnings. Borrowings have increased slightly from ₹4,726 crores to ₹5,004 crores, but remain well below asset growth, which rose from ₹21,557 crores to ₹24,147 crores. This suggests capital intensity is rising due to planned capex, but the company is financing growth through internal cash flows and manageable debt levels, with no aggressive leverage.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2026 |
|---|---|
| Operating | +2,554 |
| Investing | -1,598 |
| Financing | -708 |
| Net Cash Flow | +257 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 50.3% | 50.3% | 50.3% | 50.3% |
| FII | 18.0% | 17.5% | 16.7% | 15.4% |
| DII | 19.5% | 20.2% | 21.2% | 22.4% |
| Public | 9.1% | 8.9% | 8.8% | 8.7% |
| # Shareholders | 1,91,991 | 1,81,280 | 1,80,341 | 1,77,423 |
FII holding has increased from 16.66% (Q4FY26) to 15.45% (Q1FY27), while DII rose from 20.18% to 22.44%, indicating institutional accumulation. Promoter holding remains stable at 50.26%, with no signs of dilution or selling. The number of shareholders has slightly declined, but this may reflect consolidation rather than exit. Overall, institutional confidence appears to be growing, aligning with improving fundamentals.
⚖️ Peer Comparison — Chemicals
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| PIDILITIND | 1.66 L Cr | 62.6 | 33.4% | 24.7% | 0.01 |
| SRF | 76,916 | 35.6 | 15.6% | 15.4% | 0.36 |
| LINDEINDIA | 55,474 | 101.5 | 17.5% | 12.8% | 0.00 |
| FLUOROCHEM | 52,441 | 85.7 | 9.6% | 7.7% | 0.34 |
| NAVINFLUOR | 43,655 | 55.2 | 22.2% | 19.9% | 0.31 |
| GODREJIND | 39,359 | 33.5 | 9.2% | 19.8% | 4.57 |
| HSCL | 33,953 | 42.2 | 20.7% | 17.1% | 0.16 |
| DEEPAKNTR | 24,047 | 30.7 | 15.3% | 13.4% | 0.26 |
| AETHER | 22,519 | 95.5 | 13.8% | 10.6% | 0.08 |
| AARTIIND | 19,602 | 36.9 | 9.2% | 9.5% | 0.68 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1) The company continues to face a residual tax demand of Rs 9.46 crores from FY22-23, with legal recourse still under evaluation, posing potential for unexpected liabilities. 2) Despite strong growth, the Chemicals segment — still the largest revenue contributor — is growing at only 26%, raising concerns about over-reliance on legacy business. 3) Capex of ₹250 crores for BOPET may strain cash flows if delays or cost overruns occur, especially with operating cash flow declining slightly quarter-on-quarter in absolute terms (though net positive).
📋 Recent Filings
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🔴 Announcement 27 July 2026SRF Limited disclosed that the Income Tax Department's final assessment order for FY 2022-23 contained a technical error leading to an initial demand ...
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🔴 Corporate Action 23 July 2026SRF Limited announced that shareholders can submit documents to claim lower or zero TDS on dividends declared on 22 July 2026, with a deadline of 30 J...
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🔴 Financial Results 23 July 2026SRF Limited announced that the audio recording of its earnings call for the quarter ended June 30, 2026 will be available on its website, providing in...
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🔴 Corporate Action 22 July 2026SRF Limited announced an interim dividend of Rs 5 per share, representing 50% of the paid-up equity, payable to shareholders on record as of 28 July 2...
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🟡 Board Meeting 22 July 2026SRF Limited announced the outcome of its Board meeting on 22 July 2026, approving unaudited standalone and consolidated financial results for the quar...
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🔴 Financial Results 22 July 2026SRF Limited reported consolidated revenue of **₹5,033 crores** for Q1FY27, up 32% YoY from ₹3,819 crores, with PAT rising 76% to ₹759 crores. EBIT gre...
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🔴 Financial Results 22 July 2026SRF Limited reported consolidated revenue of **₹5,033.3 crores** for Q1 FY27, up 31.8% YoY, with EBITDA at **₹1,372.6 crores** (+61.4% YoY) and PAT ma...
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🔴 Corporate Action 22 July 2026SRF Limited announced an interim dividend of 50% (Rs 5 per share) payable to shareholders on record as of 28 July 2026, with payment scheduled on or b...
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🟡 Board Meeting 22 July 2026SRF Limited announced board approval to set up a 25,000 MTPA BOPET thick film line at a cost of **₹250 crores**, to be commissioned within 24 months u...
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Financial Results 1 July 2026SRF Limited announced that its trading window will close on 1 July 2026 and remain shut until 48 hours after the unaudited Q1 results are declared, wi...
🧠 Analyst's Read
SRF is executing a clear shift toward high-growth specialty segments with improving margins and capital discipline, supported by strong quarterly performance and shareholder returns. The key watchpoints are execution of the BOPET investment, sustainability of margin expansion, and resolution of the remaining tax liability. Investors should monitor segmental margins and order intake trends in the next few quarters to assess momentum.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-01.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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