SRF (SRF IN) – Q2FY26 Result Update – Ref gas drives growth amid Agro weakness – HOLD
Published on 28 Oct 2025
SRF reported consolidated revenue of Rs36.4bn, registering a 6.3% YoY increase but a 4.7% sequential decline. The Chemicals segment remained the key growth driver, posting a robust 23% YoY rise; however, it declined by 9% QoQ due to deferred sales by major agrochemical customers. The Fluorochemicals business delivered strong growth, supported by higher volumes and improved realizations. The Performance Films segment declined 1% YoY and QoQ, with margins contracting by 150bps sequentially, impacted by an influx of low-cost imports from China and temporary disruptions linked to GST 2.0. The Technical Textiles business also came under pressure from cheap imports and US tariff-related challenges.
Rising refrigerant prices, particularly for R32, driven by the ongoing consumer trade-in program in China, have supported near-term performance. However, we do not expect this program to continue, which could lead to a moderation in R32 prices going forward. Additionally, subdued agrochemical demand and persistent oversupply from Chinese producers remain key concerns. We remain cautious on the stock maintaining ‘HOLD’ rating on stock with a SOTP-based target price of Rs3,123.
