SRF Q1 results: Net profit surges over 71% YoY to ₹432 crore, dividend declared

SRF Ltd on Wednesday, July 23, reported a 71.4% year-on-year (YoY) surge in its consolidated net profit to ₹432.32 crore in the first quarter of FY26, compared to ₹252.22 crore in the corresponding period a year earlier.

SRF’s net profit and EBITDA jumped due to favourable inventory adjustment worth ₹61 crore.

The chemical company’s revenue from operations stood at ₹3,818.62 crore in the quarter under review, jumping 12.2% YoY from ₹3,464.12 crore in the June quarter of FY25. However, the revenue fell 9.4% quarter-on-quarter (QoQ) from ₹4,313.34 in the previous quarter.

The firm earned ₹1,838.95 crore in the quarter from its chemicals business, growing 24.09% YoY from ₹1,482 crore, as it continued to witness a demand uptick for key agrochemical intermediates. Furthermore, strategic pricing initiatives and solid performance in export markets contributed to revenue growth in the specialty chemicals segment.

Its fluorochemicals business delivered robust performance, driven by higher refrigerant gas pricing. Despite a weak domestic market, the business was able to find countermeasures by enhancing its exports, SRF said in a regulatory filing.

The MNC’s revenue from its performance films and foil segment increased 6.13% YoY to ₹1,418.20 crore in the June FY26 quarter, as against ₹1,336.30 crore in the year-ago period.

“During Q1FY26, the Performance Films & Foil Business achieved its highest-ever packed production, reflecting enhanced operational efficiency and capacity utilization. The Business remained focused on profitability by commercializing new Value-Added Products (VAPs) and accelerating sales of high-impact VAPs. Aluminium Foil registered its highest quarterly sales to date, reflecting encouraging market demand and effective execution of strategic initiatives,” the firm said.

However, its revenue from the technical textiles business fell 11.18% YoY to ₹466.55 crore from ₹525.29 crore, owing to a decline in domestic demand for nylon tyre cord fabrics during the quarter, along with pricing pressures in the belting fabrics business due to persistent dumping from China. Nonetheless, Nylon and Polyester Industrial Yarn showed improved sales.

Its other business segment reported a 25% YoY decrease in its segment revenue to ₹95 crore from ₹126 crore.

At an operational level, SRF’s EBITDA (earnings before interest, tax, depreciation and amortisation) surged 53% YoY to ₹830 crore in the June FY26 quarter, compared to ₹542 crore in Q1FY25. However, it fell 3.4% QoQ from ₹859 crore in Q4FY25.

Commenting on the results, Ashish Bharat Ram, the Chairman and Managing Director of SRF, said: “In spite of a weak summer and prevailing global uncertainties, we have had a good start to the year. We remain cautiously optimistic for the rest of the year. Our capital expenditure plans continue to be robust, as reflected in the latest announcements.”

Board declares interim dividend

SRF’s board of directors also declared an interim dividend of (at 40%) ₹4 per share on the paid-up equity share capital of the company for FY26.

The firm fixed July 29, 2025, as the record date for the interim dividend.

Shares of SRF closed 2.23% higher at ₹3,206.40 apiece on the National Stock Exchange (NSE) on Wednesday.