SRF: Business Overview & Financial Analysis
SRF Limited is a chemical-based multi-business conglomerate headquartered in Gurugram, Haryana. Promoted by KAMA Holdings Limited, the company operates across specialty chemicals, fluorochemicals, performance films and foils, and technical textiles. With 16 manufacturing facilities across India, Thailand, South Africa, and Hungary, SRF exports high-performance industrial intermediates and materials to more than 90 countries worldwide.
Segment Revenue Mix of SRF (FY2026)
SRF has a diversified business portfolio, with the Chemicals Business contributing the largest share of revenue, followed by Performance Films & Foil and Technical Textiles.
- Chemicals Business – Rs 7,779 crore (49.3%)
- Performance Films & Foil Business – Rs 5,764 crore (36.5%)
- Technical Textiles Business – Rs 1,877 crore (11.9%)
- Other Businesses – Rs 366 crore (2.3%)
The Chemicals Business remains the company's largest revenue contributor, generating nearly half of consolidated sales through specialty agrochemicals, pharmaceutical intermediates, and fluorochemicals. The Performance Films & Foil business is the second-largest segment, supplying flexible packaging materials, capacitor-grade films, and aluminium packaging solutions to global markets. The Technical Textiles segment manufactures nylon tyre cord fabrics and industrial yarns, while the Other Businesses segment includes coated and laminated fabrics.
Consolidated Financial Performance of SRF (FY2026)
The company reported strong growth in revenue, profitability, and operating margins during FY2026.
- Gross Operating Revenue – Rs 15,786.5 crore (+7.4% YoY)
- Operating EBITDA – Rs 3,705.0 crore (+24.7% YoY)
- Operating EBITDA Margin – 23.5% (improved from 20.2% in FY25)
- Net Profit After Tax (PAT) – Rs 1,835.2 crore (+46.7% YoY)
- Earnings Per Share (EPS) – Rs 61.91 (+46.7% YoY)
- Net Debt to EBITDA Ratio – 1.02x (improved from 1.19x in FY25)
Gross operating revenue increased to Rs 15,786.5 crore, supported by higher realisations in refrigerant gases and specialty chemicals. Operating EBITDA grew 24.7% year-on-year to Rs 3,705 crore, resulting in a 330 basis point improvement in EBITDA margin to 23.5%. Net profit rose 46.7% year-on-year due to a better product mix, operating leverage, and stable raw material costs. The balance sheet also strengthened, with the Net Debt to EBITDA ratio improving to 1.02x by the end of FY2026.
Latest Quarterly Performance of SRF (Q4 FY26)
SRF delivered steady quarterly growth, supported by improving performance across its Chemicals and Performance Films businesses.
- Consolidated Revenue from Operations – Rs 4,615 crore (+7.0% YoY)
- Operating EBITDA – Rs 1,051 crore (+5.9% YoY)
- Operating EBITDA Margin – 22.8%
- Net Profit After Tax (PAT) – Rs 582 crore (+10.6% YoY)
- Chemicals Segment EBIT – Rs 638.41 crore
- Performance Films & Foil EBIT – Rs 349.73 crore (+47% YoY)
Q4 FY26 revenue increased 7% year-on-year to Rs 4,615 crore, driven by recovery in performance packaging films and stable fluorochemical dispatches. Net profit reached Rs 582 crore despite absorbing a one-time provision of Rs 11.7 crore related to statutory labour code adjustments. The Performance Films & Foil division reported a 47% year-on-year increase in EBIT to Rs 349.73 crore, supported by higher volumes in BOPET and BOPP films.
Chemicals & Specialty Chemicals Segment of SRF (FY2026)
The Chemicals Business continues to be the company's largest contributor to revenue and profitability.
- Segment Revenue – Rs 7,779 crore (49.3% of total revenue)
- Segment EBIT – Rs 2,263 crore (+35.9% YoY)
- Share of Total Company EBIT – >75% of consolidated EBIT
- Core Product Families – Fluorochemicals (Floron HFCs), Agrochemical Intermediates, Active Pharma Ingredients
The Chemicals Business generated Rs 2,263 crore in EBIT, contributing more than three-fourths of the company's total operating profit. Segment EBIT increased 35.9% year-on-year due to improved pricing and higher market share in HFC refrigerant gases across domestic and export markets. The commissioning of new specialty chemical plants also supported the commercialisation of agrochemical and pharmaceutical intermediate products.
Performance Films & Foil Division of SRF (FY2026)
The Performance Films & Foil business continued to benefit from higher volumes and expansion into value-added products.
- Segment Revenue – Rs 5,764 crore (36.5% of total revenue)
- Segment EBIT – Rs 508 crore (+39.2% YoY)
- Core Product Offerings – BOPET Films, BOPP Films, Metalized Films, Capacitor Films, Aluminum Foil
- Manufacturing Presence – India, Thailand, South Africa, Hungary
Segment revenue increased to Rs 5,764 crore, supported by volume growth and expansion in value-added products. EBIT rose 39.2% year-on-year to Rs 508 crore despite pricing pressure in European markets, helped by the company's entry into specialised capacitor-grade films. The commissioning of a new aluminium packaging facility also added new revenue opportunities in food and pharmaceutical packaging.
Technical Textiles Business Profile of SRF (FY2026)
The Technical Textiles business continues to provide stable cash generation despite softer market demand.
- Segment Revenue – Rs 1,877 crore (11.9% of total revenue)
- Segment EBIT – Rs 190 crore
- Major Product Lines – Nylon Tyre Cord Fabrics (NTCF), Polyester Industrial Yarn (PIY), Belting Fabrics
Technical Textiles generated revenue of Rs 1,877 crore during FY2026, reflecting a 7.5% year-on-year decline due to cyclical weakness in industrial yarn demand. Nylon Tyre Cord Fabrics maintained a healthy market share among domestic automotive tyre OEMs, while the segment continued to generate stable operating EBIT of Rs 190 crore.
Manufacturing Infrastructure & R&D Capabilities of SRF (FY2026)
SRF continues to strengthen its manufacturing footprint and research capabilities across global markets.
- Global Manufacturing Units – 16 plants across 4 countries
- Total Patent Applications Filed – 521 patent applications
- Global Export Network – 90+ countries
- Capital Work-in-Progress (CWIP) – Rs 1,889 crore
The company operates 16 manufacturing facilities across India, Thailand, South Africa, and Hungary. Its in-house R&D capabilities have resulted in 521 patent applications covering complex fluorination technologies and organic chemistry. Capital work-in-progress stood at Rs 1,889 crore, reflecting ongoing investments in chemical and packaging manufacturing facilities.
Capex & Expansion Roadmap of SRF (FY2026–FY2028)
SRF is making significant investments to expand specialty chemical production and strengthen future growth.
- Odisha Greenfield Chemical Outlay – ~Rs 2,300 crore
- Dahej HFC Capacity Expansion Capex – Rs 88 crore
- Medium-Term Capitalization – Rs 1,800+ crore capitalized assets in specialty chemicals
The Board has approved an investment of around Rs 2,300 crore for a multi-product greenfield chemical complex in Odisha. An additional Rs 88 crore has been approved to expand HFC refrigerant gas production capacity at the Dahej facility. The company is also commissioning new specialty chemical plants for agrochemicals and pharmaceutical intermediates to support revenue growth over the next three years.
Management Commentary & Strategic Outlook of SRF (FY2026)
Management remains focused on expanding specialty chemicals, improving product mix, and maintaining financial discipline.
- Management expects demand recovery in specialty agrochemicals to gather momentum as global customer destocking cycles complete.
- The company aims to leverage new US tariff policies on chemical imports to expand its market share across North American customer accounts.
- Capital allocation priorities will remain focused on knowledge-based specialty chemicals and eco-friendly fluorinated molecules.
- Performance Films division strategy prioritizes value-added capacitor-grade films and aluminum packaging to offset general BOPET oversupply.
- Management continues to track Chinese pricing dynamics and geopolitical headwinds while maintaining balance sheet leverage under control.
The company expects improving demand in specialty agrochemicals as customer destocking normalises globally. Management also plans to benefit from changes in US chemical import policies, continue investing in knowledge-based specialty chemicals and environmentally friendly fluorinated molecules, expand value-added products in the Performance Films business, and closely monitor Chinese pricing trends and geopolitical developments while maintaining a healthy balance sheet.
Sources & References
- SRF Limited Q4 & Full Year FY26 Investor Presentation & Financial Results (May 2026)
- SRF Limited Q4 FY26 Earnings Call Transcript & Exchange Filings (May 2026)
- CRISIL Rating Rationale Note for SRF Limited
- Ticker Finology SRF Limited Page
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Disclaimer
The information presented above on SRF Limited has been compiled from the company's Annual Reports, Investor Presentations, Earnings Call (Concall) Transcripts, official regulatory filings and the financial data available on Finology Ticker. Certain figures, classifications or comparisons may vary due to differences in accounting policies, reporting methodologies or subsequent restatements by the company. This content is intended solely for informational purposes and should not be considered as investment advice. Investors are advised to refer to the latest company filings and the updated financial data, ratios and disclosures available on this Finology Ticker SRF Limited page before making any investment decision. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.