SRF Q1 Results: Chemicals, films businesses do well, textile drags; Board approves capex

Specialty chemicals manufacturing company SRF Ltd. reported its June quarter results on Wednesday, July 23, which were mixed in comparison to analyst expectations, but higher on a year-on-year basis.

The company's revenue increased by 10.3% from the year-ago period to ₹3,819.6 crore. This figure was lower than the CNBC-TV18 poll estimate of ₹4,091 crore.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter increased by 37.8% from last year to ₹831 crore, meeting analyst expectations of ₹832 crore.

EBITDA margin expanded by 430 basis points on a year-on-year basis to 21.7% and they were higher than the CNBC-TV18 poll estimate of 20.3%.

Net profit for the period stood at ₹432 crore, which is 71.5% higher from last year's tally of ₹252 crore. Lower finance costs and a forex gain contributed to the profitability gain.

In two separate releases, SRF also mentioned that it will be setting up a production facility to produce agrochemicals at Dahej, Gujarat. The proposed capacity addition will be done based on the product mix. The company will invest ₹250 crore for the same, which will be funded via debt and internal accruals.

The board has also approved a ₹490 crore investment to set up a BOPP film manufacturing facility in Indore, which will be completed in the next 24 months.

"In spite of a weak summer and prevailing global uncertainties, we have had a good start to the year and remain cautiously optimistic for the rest of the year," Ashish Bharat Ram, the CMD of SRF was quoted as saying.

SRF's Chemicals business grew 24% from last year, while its operating profit increased by 64%. The specialty chemicals business continues to witness demand uptick for key agrochemical intermediates, while the fluorochemicals business was aided by higher refrigerant gas pricing.

Performance Films and Foils business grew by 6% on year-on-year basis to ₹1,336 crore. It achieved its highest-ever packed production during e quarter. Aluminium foils registered its highest quarterly sales to date.

Technical Textiles business though, saw a decline of 11% during the quarter, while its operating profit nearly halved, declining by 44%, due to a decreased demand for Nylon Tyre Cord Fabric.

SRF's board has also approved an interim dividend of ₹4 per share and the record date for that has been fixed as Tuesday, July 29.

Shares of SRF are trading 2.3% higher after the results announcement, after nearly giving up all the gains to ₹3,203. The stock has risen 43% so far in 2025.