SRF (SRF IN) – Q2FY27 Result Update – Higher HFC volumes and realisations support growth – Upgrade to ‘HOLD’
Published on 22 Oct 2026
SRF reported consolidated revenue of INR49bn in Q2FY27, up 35% YoY but down 3% QoQ. The Chemicals segment grew 25% YoY, driven by robust performance in Fluorochemicals on the back of higher volumes and improved realizations. However, Specialty Chemicals remained subdued, with volume recovery now expected in select pockets in H2FY27. The Performance Films & Foil business reported 51% YoY and 5% QoQ revenue growth, supported by stronger demand across geographies and higher aluminium foil exports to Europe. Segment EBIT margin normalised to 9.7% from 17.3% in Q1FY27, as the benefit from low-cost inventory was absent during the quarter. Technical Textiles also delivered 25% YoY revenue growth, supported by exports and new customer additions in the belting fabric segment. While the Fluorochemicals business continues to benefit from strong refrigerant realizations, subdued agrochemical demand and persistent oversupply from Chinese players remain key challenges for Specialty Chemicals. Accordingly, we remain cautious on the stock. However, following the recent sharp correction in the share price, we upgrade our rating to Hold from Reduce, with an SOTP-based target price of Rs2,349.
