SRF shares surge 9%: From Q4 earnings to expansion plans, key factors driving the rally

SRF shares rallied 9.4% to touch an intraday ₹2,762 apiece on Wednesday, May 6, a day after the chemical firm reported its March quarter earnings.

At 1:20 PM, SRF shares were trading at ₹2,747.50 apiece on the National Stock Exchange, soaring 8.91%.

In a month, shares of the firm have surged 13%, while for six months’ time, they have fallen 5%. From the beginning of the year, SRF shares have tumbled over 10%.

The company has a market capitalisation of ₹81,416.04 crore, according to NSE data.

Shares of the company had touched their one-year high of ₹3,325 apiece on July 10, 2025, while their 52-week low of ₹2,355 was hit on April 6, 2026.

The company posted an 11% increase in its consolidated net profit to ₹582.02 crore for the quarter ended March and announced plans to invest ₹2,300 crore to set up a plant in Odisha. Its net profit stood at ₹526.06 crore in the year-ago period.

The total income rose to ₹4,640.07 crore during the January-March period of 2025-26 from ₹4,347.83 crore in the corresponding period of the preceding year.

During the financial year 2025-26 (FY26), SRF Ltd profit rose 47% to ₹1,835.18 crore from ₹1,250.78 crore in the preceding year. Its total income grew to ₹15,893.57 crore in the last fiscal from ₹14,825.79 crore in 2024-25.

SRF said its board had approved a capital expenditure of ₹1,100 crore for the new generation refrigerants project in October 2024.

“Following the acquisition of land in Odisha, the scope of the project has been revised. The company now plans to invest approximately ₹2,300 crore in this project,” it added.

New plant investments

Now, the company will set up 20,000-tonne-per-annum Hydrofluoroolefins (HFOs) plants to produce fourth-generation refrigerants. It will establish a 30,000-tonne-per-annum Anhydrous Hydrogen Fluoride (AHF) plant, along with forward integration into value-added hydrogen fluoride (VHF) products.

The project is expected to be completed by February 28, 2028, and will be financed through a mix of debt and internal accruals.

"The investment is driven by the anticipated demand for HFOs and VHF and is aligned with the company's strategic objective of strengthening its position in next-generation refrigerants and integrated fluorochemical value chains," the filing said.

Plant expansion plans

The Board also approved a project to expand the existing HFC capacity at Dahej. The project entails an estimated investment of ₹88 crore and is aimed at addressing projected future demand. The project is expected to be commissioned within the next few months, and the requisite environmental clearance is already in place.

Following debottlenecking, the company’s HFC capacity will increase to 65,000 tonnes per annum.

SRF's diversified business portfolio covers fluorochemicals, speciality chemicals, performance films & foil, technical textiles and coated and laminated fabrics. It has 13 manufacturing facilities in India and one each in Thailand, South Africa and Hungary.