SRF share price movement
Share price of SRF tanked 9 per cent to ₹2,617.50 on the BSE in Thursday’s intra-day deals despite reporting a robust June 2026 quarter (Q1FY27) earnings across all segments. The selling at the counter can be attributed to profit booking. The stock was the top loser among the BSE 150 midcap index.
At 02:26 PM, SRF quoted 8.7 per cent lower at ₹2,624.30, as compared to a 0.5 per cent decline in the BSE Sensex. The average trading volume at the counter more than doubled with a combined 2 million equity shares changing hands on the NSE and BSE.
Meanwhile, the stock price of commodity chemicals rallied 28 per cent from its 52-week low of ₹2,313.75 on March 2, 2026. The stock declined 12 per cent from its Wednesday’s high of ₹2,972.75 on the BSE.
SRF – Q1 results
In Q1FY27,
SRF’s revenue grew 32 per cent year-on-year (YoY) to ₹4,939 crore driven by Chemicals which grew 26 per cent YoY, to ₹2,315 crore. Similarly, Packaging Films grew by 42 per cent YoY to ₹2,017 crore and Technical Textile grew 28 per cent YoY to ₹597 crore. The company’s profit after tax (PAT) jumped 76 per cent YoY at ₹759 crore.
Consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 49 per cent YoY at ₹1,237 crore, translating to margins of 24.6 per cent, up 280 bps YoY while Chemical Business EBIT came in at ₹638 crore, up 27 per cent YoY.
Board approves ₹250 crore capital expenditure (capex) proposal
The company plans to invest ₹250 crore to set up a BOPET Thick Film Line in India, comprising a Bruckner-made production line and a Kampf primary slitter.
BOPET (biaxially oriented polyethylene terephthalate) thick film is a specialized product with applications in industrial and electronic end use segments. Since it is a new substrate, it does not have the same cycle as commodity thin films, helping better manage cyclicality. Limited domestic capacity in India further reduces volatility.
The company is also undertaking a series of smaller capital expenditure projects within the Specialty Chemicals business to enhance capacity and operational efficiencies through debottlenecking initiatives, particularly in the Agrochemicals portfolio.
SRF – brokerages view
SRF reported a robust quarter across all its segments. In Chemicals, the specialty chemicals sub-segment delivered a steady performance despite industry overcapacity in China, and ongoing geopolitical uncertainties. Pricing pressure in this sub-segment continued to persist, ICICI Securities said in a note.
On the other hand, the fluorochemicals business continued to witness strong momentum with healthy demand for Chloromethanes and Fluoropolymers. Surprisingly, Technical Textile delivered a record quarter driven by the highest-ever packed production in Films and Foil. The Technical Textile business too reported stable demand and higher margins for Tyre Cord Fabrics and strong domestic and export demand for Belting Fabrics, despite ongoing competitive pressures from Chinese exports, the brokerage firm said.
Furthermore, the company approved a proposal to set up a BOPET Thick Film Line at a projected cost of ₹250 crore, where it will establish a capacity of 25,000 MTPA. As per management, this product is unlikely to witness cyclicality like other commodity thin films, ICICI Securities said, adding they await further management commentary for more insights.
SRF is a diversified chemicals and materials company with leadership positions across specialty chemicals, fluorochemicals, packaging films and technical textiles.
Analysts at Systematix Institutional Research believe the company is strategically set to benefit from its robust capex pipeline, rising high-margin specialty chemicals contribution, expanding global fluorochemicals presence and favorable industry tailwinds, driven by import substitution and supply-chain diversification. Its proven execution track record, healthy balance sheet and expanding complex chemistry product portfolio point to sustainable earnings growth and healthy return ratios over the medium term, the brokerage firm said in the FY26 annual report analysis.
Meanwhile, in the FY26 annual report SRF said that the global and Indian economies are expected to deliver moderate growth amid geopolitical uncertainties and fragmented trade conditions in FY27. The Indian air-conditioning industry is expected to witness a robust growth, supporting increased demand for refrigerants. The US market is likely to remain stable in the near term, while the Middle East is expected to grow, assuming ongoing disruptions ease.
Expanding into new geographies and maintaining a resilient supply chain will remain key focus areas, with pricing expected to remain stable. The Industrial Chemicals segment is expected to remain moderate, with continued softness in the agrochemical and pharmaceutical industries, SRF said. ============================================================= Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.
 "SRF tanks 9% post June quarter results; board approves ₹250 cr capex")
