SRF LIMITED – Investor Presentation Summary

Key Operational Highlights

  • Chemicals business maintained strong market share in key products through technology-led cost initiatives.
  • Performance Films & Foil business achieved its highest ever quarterly performance with robust performance across all units.
  • Technical Textiles business saw demand recovery supported by inventory gains across all segments.
  • Commissioning of two new looms in June 2026 augmented in-house textile manufacturing capacity.
  • Key drivers: Growing customer participation in Chemicals, supply disruptions positively impacting Films margins, and demand recovery in Technical Textiles.

Segment-wise Performance

Chemicals Business

  • Segment Revenues: ₹2,314.9 crore (46.0% of total), up 25.9% YoY
  • EBIT: ₹638.4 crore, up 26.9% YoY
  • EBIT Margins: 27.6% vs 27.3% in Q1 FY26
  • Contribution to Total EBIT: 57.2%

Performance Films & Foil Business

  • Segment Revenues: ₹2,016.7 crore (40.1% of total), up 42.2% YoY
  • EBIT: ₹349.7 crore, up 149.4% YoY
  • EBIT Margins: 17.3% vs 9.9% in Q1 FY26
  • Contribution to Total EBIT: 31.3%

Technical Textiles Business

  • Segment Revenues: ₹596.8 crore (11.8% of total), up 27.9% YoY
  • EBIT: ₹107.8 crore, up 186.4% YoY
  • EBIT Margins: 18.1% vs 8.1% in Q1 FY26
  • Contribution to Total EBIT: 9.7%

Other Businesses

  • Segment Revenues: ₹104.9 crore (2.1% of total), up 10.5% YoY
  • EBIT: ₹20.2 crore, up 50.3% YoY
  • EBIT Margins: 19.2% vs 14.1% in Q1 FY26
  • Contribution to Total EBIT: 1.8%

Financial Highlights

  • Revenue: ₹5,033.3 crore
  • EBITDA: ₹1,370.6 crore
  • PAT: ₹758.9 crore
  • Basic EPS: ₹25.60
  • EBITDA Margin: 27.3%
  • PAT Margin: 15.1%
  • YoY Comparison: Revenue up 31.9%, PAT up 75.5%, EBITDA Margin expanded from 22.3% to 27.3%
  • Drivers of financial performance: Higher volumes across domestic and export markets, steady performance from Industrial Chemicals & Fluoropolymers, and operational discipline.
  • Key Risks: Pricing pressure from Chinese competition, geopolitical tensions disrupting supply chains, raw material price volatility.

Geographical Revenue Split

  • Not Specified in the presentation

Balance Sheet Snapshot

  • Historical Net Debt to Equity: 0.27 as of FY26 (10-year range: 0.27-0.83)
  • Historical Net Debt to EBITDA: 1.02 as of FY26 (10-year range: 0.87-3.01)
  • Financial Health Insights: Strong historical debt management with improving leverage ratios over past decade.

Capex & Cash Flow Health

  • Capital Expenditure: Board approved ₹250 crore for new BOPET Thick Film Line in India
  • Investment Rationale: Focus on capacity expansion and value-added product capabilities
  • All other ongoing capex projects are progressing as per schedule, including newly approved capex in Odisha.

Strategic & R&D Initiatives

  • Investments in Innovation: PTFE ramp-up progressing with value-added grades; continued focus on expanding sustainable product offerings
  • Expected impact: New pharma products demonstrating early market acceptance with volumes expected to scale up medium term; product portfolio expansion with new launches planned coming quarters
  • Strategic Rationale: Building high-end value-added products, maintaining market leadership, and nurturing innovation through R&D
  • Patents: 528 patents filed with 159 granted, reinforcing technology leadership

Industry Trends & Business Environment

  • Macro/Industry Trends: Early signs of agrochemical demand recovery; ongoing geopolitical tensions; supply chain disruptions; competition from Chinese players
  • Impact on Company: Pricing pressure across end-markets; potential raw material cost volatility; supply disruptions positively impacted Films margins in Q1

Management Commentary & Growth Outlook

  • Strategic Outlook: Focus on maximizing HFC production and capacity expansion; navigat domestic competition; maintain market position
  • FY Guidance: Refrigerant gases and propellants expected stable demand-price environment globally; PTFE growth driven by ramp-up, export mix and value-added capacity; TCF demand expected flat to marginally positive
  • Regional Outlook: South Africa expected stable; Thailand may have negative impact due to ocean freight surge; Hungary may witness demand slowdown due to holiday season
  • Risks: Prolonged Middle East conflict may exert pressure on key raw material prices; generics pressure on innovator Agrochemical players continues

ESG Updates

  • Community Engagement: Strengthening Education, Health & Community Engagement in Assam
  • Digital Initiatives: Digital Bus program benefited 5,125 students through digital learning; 2,044 beneficiaries accessed digital services; 318 participants introduced to Artificial Intelligence
  • Operational Initiatives: Conversion from LPG to PNG enhancing fuel security; focus on 3R's (Recycle, Reuse & Reduce); increasing consumption of green/renewable energy sources