SRF Q1FY26 Net Profit Slips 17% QoQ to ₹432.32 Cr; Interim Dividend Announced
By Shishta Dutta | Updated at: Jul 23, 2025 05:27 PM IST
Gurugram, July 23, 2025: SRF Limited (NSE: SRF, BSE: 503806) has published its consolidated financial results for the first quarter of the financial year 2026 (Q1 FY26). The company reported a sequential decrease in both net profit and revenue for the quarter. However, a robust year-on-year performance was observed across key financial indicators. Concurrently, the board has approved a first interim dividend for the current fiscal year.
Consolidated Financial Snapshot
For Q1 FY26, SRF’s consolidated net profit stood at ₹432.32 crore. This represents a 17% sequential decline when compared to ₹526.06 crore recorded in Q4 FY25. The company’s revenue from operations also saw a dip, coming in at ₹3,818.62 crore, which is an 11.5% decrease quarter-on-quarter from ₹4,313.34 crore.
Conversely, on a year-on-year (YoY) basis, the results demonstrate strong growth. Net profit rose significantly by 71.1% from ₹252.22 crore in Q1 FY25, while revenue grew by 10.2% from ₹3,464.12 crore in the corresponding period last year. Total income for the quarter was ₹3,847.74 crore, showing a sequential decrease of 11.5% but a year-on-year increase of 10.3%. EBITDA (approximated) reached ₹694.19 crore, reflecting a 23.3% QoQ decline but a substantial 43.3% YoY rise. Profit Before Tax was ₹575.82 crore, an 18.6% sequential drop but a 67.4% year-on-year increase. Consequently, Earnings Per Share (Basic & Diluted) for Q1 FY26 were ₹14.58, decreasing 17.8% QoQ but increasing 71.3% YoY.
Segment-Wise Performance
During Q1 FY26, the Chemicals Business was the largest revenue contributor, generating ₹1,838.95 crore. This segment also recorded ₹502.92 crore in EBIT and demonstrated robust 24.1% year-on-year revenue growth, showcasing strong margin resilience despite some topline moderation.
The Performance Films & Foils segment continued its recovery trajectory, achieving ₹1,418.20 crore in revenue and contributing ₹140.20 crore to segmental profits, with a 6.1% YoY revenue growth. In contrast, both the Technical Textiles Business and the ‘Others’ segment faced challenging conditions. Technical Textiles recorded ₹466.55 crore in revenue and ₹37.64 crore in EBIT, experiencing an 11.2% YoY revenue decline. The ‘Others’ segment generated ₹94.92 crore in revenue with ₹13.43 crore in EBIT, facing a 24.8% YoY revenue decline, primarily attributed to soft demand and operational cost pressures.
Key Ratios (Consolidated)
| Metric | Q1FY26 | Q4FY25 |
|---|---|---|
| Operating Margin (%) | 17.17% | 18.47% |
| Net Profit Margin (%) | 11.32% | 12.20% |
| Debt-to-Equity Ratio | 0.35 | 0.37 |
| Debt Service Coverage Ratio | 2.58 | 1.26 |
| Interest Coverage Ratio | 8.55 | 9.07 |
Interim Dividend
The board has approved a first interim dividend of ₹4 per equity share of ₹10 each for FY26, amounting to ₹118.57 crore. This decision aligns with SRF’s consistent dividend-paying history.
Management Commentary
Chairman and MD Ashish Bharat Ram stated:
“Despite a softer quarter sequentially due to seasonal factors and input cost volatility, we delivered healthy YoY growth, driven by strong traction in our Chemicals and Packaging Films segments. We remain committed to disciplined capital allocation and technology-led expansion.”
Strategic Updates
- Commercial paper worth ₹200 crore remained outstanding as of June 30, 2025, fully repaid on due dates. The program is rated CRISIL A1+ and IND A1+.
- Consolidated net worth stood at ₹13,098.98 crore, with total assets of ₹22,121.76 crore and total debt of ₹4,554.14 crore.
Share Price Performance
On July 23, the shares of SRF Limited closed 1.80% or ₹56.50 higher at ₹3,193.00. The shares made an intraday high of ₹3,222.10 and a low of ₹3,093.00.
Insights For Investors
SRF’s Q1FY26 performance reflects a mixed but overall resilient financial picture. While net profit and revenue declined sequentially by 17% and 11.5% respectively, the company posted strong year-on-year growth across key metrics. Net profit surged 71.1% YoY and EBITDA jumped 43.3%, signalling a robust turnaround from last year’s subdued base.
The Chemicals Business continues to be the growth engine, delivering double-digit revenue growth and healthy margins, while Performance Films & Foils maintained recovery momentum. However, Technical Textiles and the ‘Others’ segment are under pressure due to weak demand and rising costs.
Key financial ratios remain stable with improved debt servicing capacity, and the interim dividend reinforces SRF’s commitment to shareholder returns. For investors, SRF offers long-term potential driven by its diversified portfolio and strong fundamentals, though short-term performance may remain volatile due to cyclical headwinds in select segments.
About the Company
SRF Limited is a diversified chemicals conglomerate listed on the NSE and BSE. The company operates in Chemicals, Technical Textiles, Packaging Films, and other speciality businesses, with global manufacturing presence through subsidiaries in South Africa, Thailand, the UAE, and Europe.
SRF is part of the Nifty Midcap 100 index and has a consistent dividend-paying history, maintaining robust financials and a strategic focus on speciality chemicals and sustainable manufacturing.
REF:https://nsearchives.nseindia.com/corporate/ekta_maheshwari_23072025145605_CombinedResults.pdf
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