SRF Limited reported a strong financial performance for Q2 FY27, supported by growth across its Chemicals, Performance Films & Foil, and Technical Textiles businesses. The company continued to invest in new products and advanced materials while navigating an uncertain global operating environment.

For the quarter ended September 30, 2026, consolidated revenue from operations increased 35% year-on-year to ₹4,904 crore, compared with ₹3,640 crore in Q2 FY26. Profit after tax (PAT) rose 31% to ₹509 crore from ₹388 crore in the corresponding quarter last year.

Operational earnings before interest and tax (Operational EBIT) increased 26% to ₹816 crore, compared with approximately ₹650 crore a year earlier. Profit before tax rose 30% to ₹671 crore from ₹517 crore.

Although revenue and operating earnings increased significantly, Operational EBIT grew more slowly than revenue. This indicates that investors should also monitor operating margins, raw material costs, product mix and the sustainability of recent earnings growth.

For the first half of FY27, SRF recorded consolidated revenue of ₹9,937 crore, up 33% year-on-year. Operational EBIT increased 44% to ₹1,932 crore, while PAT climbed 55% to ₹1,268 crore. The first-half performance demonstrates stronger earnings growth compared with the same period last year.

SRF Chairman and Managing Director Ashish Bharat Ram said the company delivered strong performance despite an uncertain and volatile global environment. Management highlighted continued investment in growth opportunities, operating efficiency, technology-led cost optimisation and new product development.

The Chemicals business recorded revenue of ₹2,079 crore, up 25% year-on-year from ₹1,667 crore. Segment operating profit increased 10% to ₹528 crore from ₹481 crore. Fluorochemicals benefited from robust refrigerant sales volumes and positive pricing momentum, while Specialty Chemicals continued to operate in a challenging environment shaped by global pricing trends, Chinese industry overcapacity and geopolitical developments.

Management reiterated its full-year FY27 revenue growth guidance of 15–20% for the Chemicals business and expressed confidence in achieving the higher end of that range. The company also indicated that it expects stronger Specialty Chemicals revenue in the second half as volumes recover. The extent to which this improvement translates into operating profit will depend on pricing, cost pressures and operating efficiency.

SRF is expanding its advanced chemical portfolio to address higher-value applications. Its next-generation refrigerant project based on hydrofluoroolefins (HFOs) at Gopalpur, Odisha, remains on track for commissioning in Q4 FY28, with key regulatory approvals secured, according to management. The project is intended to strengthen SRF’s position in next-generation refrigerants.

The company is also developing higher-value fluoropolymer products. Management reported progress in customer qualification and commercialisation of specialised PTFE grades, including fine-cut grades and micropowder. Its PVDF, FEP and FKM projects are also progressing, targeting applications across chemical processing, electronics, semiconductors, energy storage and other advanced-material markets.

The Performance Films & Foil business was a major growth contributor in Q2 FY27. Segment revenue increased 51% to ₹2,122 crore from ₹1,408 crore a year earlier. Segment operating profit rose 73% to ₹206 crore from ₹119 crore.

The business benefited from demand across geographies and a growing contribution from value-added products. SRF reported its highest-ever packed production of films during the quarter. However, demand for films moderated after elevated customer buying and inventory accumulation in Q1. Aluminium foil demand remained healthy.

Management highlighted progress in offline-coated and metallised products, capacitor-grade films and higher-value aluminium foil. Customer approvals and commercial sales in capacitor-grade films are progressing, while commercial sales of aluminium foil for capacitors were expected to commence in Q3 FY27. The company also expects to commercialise its hybrid BOPP/BOPPE film line during Q3 FY27.

SRF’s board approved an investment of approximately ₹600 crore in a new aluminium foil manufacturing facility for battery and other high-value applications. The proposed facility will have a total capacity of around 12,000 metric tonnes per annum and is designed to serve lithium-ion and sodium-ion battery applications as well as high-end packaging foil.

The project is planned in two phases, with approximately ₹300 crore allocated to each phase. Phase I is expected to be completed by September 2028 and Phase II by September 2030. This investment could help SRF participate in the expanding energy-storage and electric-mobility supply chains, although the commercial opportunity will depend on execution, customer qualification and demand development.

The Technical Textiles business also reported healthy growth. Revenue increased 25% to ₹595 crore from ₹474 crore in Q2 FY26. Segment operating profit climbed 71% to ₹72 crore from ₹42 crore, supported by healthy demand and improved margins.

Management highlighted strong performance in belting fabrics, supported by exports and new customer additions. The company is also progressing with higher-value products and customer approvals for nylon 66 and polyester tyre-cord fabrics. Additional dipping capacity is expected to support throughput and product-mix improvement after commissioning.

Other businesses, including coated and laminated fabrics, recorded revenue growth of 18% to ₹107 crore from ₹91 crore. Operating profit rose 29% to ₹10 crore from ₹8 crore. These businesses delivered a stable performance amid prevailing market conditions.

Innovation remains an important part of SRF’s strategy. The company is targeting higher-value opportunities in energy storage, electricals and electronics, semiconductors, next-generation cooling, sustainability, renewables and aerospace and defence. These investments are intended to broaden its product portfolio beyond conventional chemicals and packaging materials.

However, the company continues to face risks from geopolitical uncertainty, supply-chain disruption, higher raw-material prices, freight costs and competitive pressure in specialty chemicals. In addition, major new projects require capital expenditure before their full contribution to earnings becomes visible. The timing of customer approvals and commercial scale-up will therefore be important.

For investors, the key positives are strong revenue growth, higher first-half profitability, improving performance in films and foil, and healthy Technical Textiles earnings. The main areas to watch are Chemicals profitability, margin sustainability, execution of the battery-foil project and the commercial progress of new advanced-material products.

Overall, SRF’s Q2 FY27 results reflect strong business momentum and a continued shift towards higher-value materials and chemicals. The outlook will depend on whether the company can sustain growth, manage cost pressures and convert its investment pipeline into durable revenue and earnings.

This article is for educational and informational purposes only. It is not investment advice or a recommendation to buy or sell any security. Investors should consult the company’s official filings and complete earnings-call disclosures before making investment decisions.

SRF Ltd — Q2 FY27 Concall Highlights

• Consolidated Revenue: ₹4,904 crore, up 35% YoY
• Consolidated PAT: ₹509 crore, up 31% YoY
• Operational EBIT: ₹816 crore, up 26% YoY
• Profit Before Tax: ₹671 crore, up 30% YoY
• H1 FY27 Revenue: ₹9,937 crore, up 33%
• H1 FY27 PAT: ₹1,268 crore, up 55%
• H1 FY27 Operational EBIT: ₹1,932 crore, up 44%

Segment Performance:

• Chemicals Revenue: ₹2,079 crore, up 25%
• Chemicals Operating Profit: ₹528 crore, up 10%
• Performance Films & Foil Revenue: ₹2,122 crore, up 51%
• Performance Films & Foil Operating Profit: ₹206 crore, up 73%
• Technical Textiles Revenue: ₹595 crore, up 25%
• Technical Textiles Operating Profit: ₹72 crore, up 71%
• Other Businesses Revenue: ₹107 crore, up 18%

Management Outlook & Expansion:

• FY27 Chemicals revenue growth guidance: 15–20%; management expects the higher end
• Specialty Chemicals revenue expected to improve in H2 FY27 as volumes recover
• HFO refrigerant project at Gopalpur remains on track for Q4 FY28 commissioning
• ₹600 crore investment approved for battery-grade and high-end aluminium foil
• Proposed foil capacity: 12,000 metric tonnes per annum
• Phase I completion expected by September 2028; Phase II by September 2030
• Capacitor-grade films, advanced fluoropolymers and other value-added products remain key growth areas

Key Positives:
• Strong revenue and PAT growth
• Strong Performance Films & Foil performance
• Improved Technical Textiles profitability
• New opportunities in batteries, electronics and advanced materials

Key Risks:
• Specialty Chemicals pricing and global overcapacity
• Raw-material, freight and geopolitical pressures
• Margin sustainability and execution risks on new capex projects
• New products need customer approvals and commercial scale-up

Investor Focus:
Monitor Chemicals profitability, operating margins, new-product commercialisation, capex execution and second-half growth.

Disclaimer: For educational purposes only. Not investment advice.