SRF (SRF IN) – Q3FY26 Result Update – Chemicals segment drives overall performance – HOLD
Published on 21 Jan 2026
SRF reported consolidated revenue of Rs37.1bn in Q3FY26, up 6.3% YoY and 2% QoQ. The Chemicals segment remained the key growth driver, posting a robust 22% YoY rise (+9% QoQ). The Fluorochemicals business also delivered strong growth, supported by higher volumes and improved realizations. However, the Performance Films segment declined 3% YoY and 5% QoQ, with margins contracting by 130bps sequentially, due to reduced volumes and range-bound pricing in BOPET and BOPP amid continued competitive pressure from low-cost imports and temporary disruptions related to GST 2.0. The Technical Textiles business also came under pressure impacted by margin stress in Belting Fabric due to continued influx of cheaper Chinese imports and US tariffs affecting export volumes.
The company is investing Rs15–20bn in Odisha for establishing next-generation refrigerant facilities. Additionally, subdued agrochemical demand and persistent oversupply from Chinese producers remain key concerns. We remain cautious on the stock, maintaining a ‘HOLD’ rating with an SOTP-based TP of Rs2,994.
