SRF (SRF IN) – Q1FY27 Result Update – Agrochemical uncertainty continue to persist – REDUCE
Published on 23 Jul 2026
SRF reported consolidated revenue of Rs50bn in Q1FY27, registering a growth of 32% YoY and 9% QoQ. The Chemicals segment grew 26% YoY, with the Fluorochemicals business delivering robust growth led by higher volumes and improved realizations, while pricing pressure in the Specialty Chemicals portfolio persisted due to continued competition from Chinese players. The Performance Films & Foil business emerged as the key growth driver, with revenue increasing 42% YoY and 26% QoQ, supported by higher realizations due to geopolitical supply disruptions and higher aluminium foil exports. EBIT margin for the segment expanded to 17.3% from 9.6% in Q4FY26, although management expects margins in this business to normalize from Q2FY27. The Technical Textiles business also posted healthy growth (28% YoY and 24% QoQ), aided by improved margins in Tyre Cord Fabrics and strong domestic and export demand for Belting Fabrics. Accordingly, we maintain our REDUCE rating with an SOTP-based target price of Rs2,485.
