SRF Q1 Results: Profit jumps 76%, board approves ₹250 crore capex; shares fall 3%

Shares of SRF fell to the day's lows on Wednesday, July 22, after the chemicals and packaging films maker reported a strong set of June quarter earnings, led by robust growth in its Performance Films & Foil business and margin expansion.

The company's consolidated net profit surged 75.5% year-on-year to ₹758.9 crore for the quarter ended June, compared with ₹432.3 crore a year ago. Revenue from operations rose 31.8% to ₹5,033.3 crore from ₹3,818.6 crore, while EBITDA increased 49.2% to ₹1,236.6 crore. EBITDA margin expanded to 24.6% from 22% in the year-ago period.

The June quarter performance was well ahead of Street expectations. Revenue of ₹5,033 crore topped the Bloomberg consensus estimate of ₹4,263 crore. EBITDA came in at ₹1,236.6 crore, significantly higher than the estimated ₹917 crore, while EBITDA margin of 24.6% exceeded the Street expectation of 21.5%.

The Performance Films & Foil business continued to be the standout performer, with segment revenue rising to ₹2,016.7 crore from ₹1,418.2 crore a year ago. Segment profit more than doubled to ₹349.7 crore from ₹140.2 crore.

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Meanwhile, the Chemicals business reported revenue of ₹2,314.9 crore, up from ₹1,839 crore, though segment profit rose to ₹638.4 crore from ₹502.9 crore. The Technical Textiles business also saw improved profitability, with segment profit nearly tripling to ₹107.8 crore from ₹37.6 crore.

SRF interim dividend

Separately, the board declared a first interim dividend of ₹5 per equity share (50%) for FY27. The record date has been fixed as July 28, 2026, while the dividend will be paid on or before August 18, 2026.

The board also approved a ₹250 crore capital expenditure to set up a 25,000 MTPA BOPET Thick Film Line, which is expected to be commissioned within 24 months.

The company said the specialised BOPET thick film caters to industrial and electronics applications and should help reduce earnings cyclicality due to limited domestic capacity and differentiated demand. The project will be funded through a mix of debt and internal accruals.

SRF stock movement

Despite the earnings beat across key metrics, investors remained cautious. Following the results announcement, shares of the company were trading at the day's lows at ₹2,846.90, down 3.3%. The stock has fallen more than 9% over the last 12 months.