SRF Q2 FY27 results: net profit up 31.2% to ₹509.12 crore, revenue up 34.7%

How did SRF perform in Q2 FY27?

SRF’s consolidated revenue for the July–September 2026 quarter was ₹4,904 crore, up 34.7% from ₹3,640 crore in Q2 FY26. EBITDA rose 22.2% to ₹945.88 crore, but the margin declined 2.0 percentage points to 19.3%. Profit before tax increased 29.8% to ₹671.04 crore, while net profit rose 31.2% to ₹509.12 crore and basic EPS was ₹17.18.

Against Q1 FY27, revenue was lower by ₹129.06 crore, or 2.6%, at ₹4,904 crore. EBITDA fell 23.5% to ₹945.88 crore and its margin declined 5.3 percentage points to 19.3%. Net profit was lower by ₹249.75 crore, or 32.9%, at ₹509.12 crore, while basic EPS fell from ₹25.6 to ₹17.18.

On the standalone basis, Q2 FY27 revenue was ₹3,808.61 crore, up 33.5% from the year-ago quarter, while net profit was ₹438.48 crore, compared with ₹362.66 crore in Q2 FY26.

What changed in SRF's costs and profit?

Total expenses rose 35.2% year on year to ₹4,258 crore, compared with a 34.7% increase in revenue. Cost of materials increased 36.3% by ₹697.95 crore to ₹2,623 crore, while other expenses rose 27.2% by ₹222.83 crore to ₹1,043 crore. Employee cost was higher by ₹38.58 crore, depreciation by ₹16.71 crore and finance costs by ₹0.26 crore.

Other income declined 3.0%, or ₹0.77 crore, to ₹24.94 crore from ₹25.71 crore. Tax expense rose 25.6%, or ₹33.05 crore, to ₹161.92 crore. There was no exceptional item in Q2 FY27 or Q2 FY26, so the reported profit movement did not include an exceptional-item effect.

The filing did not quantify a specific operational reason for the year-on-year margin decline. It reported higher raw-material, freight and fuel costs in the Chemicals Business, alongside cost pass-through, while geopolitical developments and supply-chain disruptions weighed on the quarter.

How did the first half of FY27 go?

For H1 FY27, consolidated revenue rose 33.2%, or ₹2,478.65 crore, to ₹9,937.46 crore. Total income increased 33.0%, or ₹2,482.67 crore, to ₹9,996.31 crore, while profit before tax rose 51.0% by ₹557.32 crore to ₹1,650.19 crore.

Net profit for the first half rose 54.5%, or ₹447.49 crore, to ₹1,267.99 crore from ₹820.5 crore in H1 FY26. Basic EPS increased 54.6%, or ₹15.1, to ₹42.78 from ₹27.68.

What do the balance sheet and cash flow show?

Total assets increased to ₹25,836.95 crore at 30 September 2026 from ₹24,146.67 crore at 31 March 2026. Total equity rose to ₹15,304.24 crore from ₹14,042.76 crore, while borrowings were higher at ₹5,205.31 crore compared with ₹5,004.33 crore. Cash declined to ₹397.92 crore from ₹590.49 crore.

Inventories increased to ₹3,378.69 crore from ₹2,788.64 crore, trade receivables to ₹3,160.53 crore from ₹2,561.6 crore and trade payables to ₹2,918.79 crore from ₹2,584.97 crore. In H1 FY27, operating cash flow was ₹793.49 crore, compared with ₹1,060.96 crore in H1 FY26; investing cash flow was negative ₹836.2 crore and financing cash flow was negative ₹152.76 crore.

Capital expenditure in H1 FY27 was ₹973.89 crore, compared with ₹879.38 crore in H1 FY26. The comparative H1 FY26 cash flows were negative ₹557.42 crore from investing activities and negative ₹649.27 crore from financing activities.

How has SRF done over the last 8 quarters?

Revenue reached its highest level in the reported series in Q1 FY27 at ₹5,033.26 crore before easing to ₹4,904.2 crore in Q2 FY27. It had earlier reached its lowest point at ₹3,491.31 crore in Q3 FY25. Profit peaked at ₹758.87 crore in Q1 FY27 and was lowest at ₹271.08 crore in Q3 FY25.

The EBITDA margin rose from 17.7% in Q3 FY25 to 22.2% in Q4 FY25, then reached 24.6% in Q1 FY27 before falling to 19.3% in Q2 FY27. Revenue and profit each rose year on year in each of the last eight quarters, although both declined sequentially in the latest quarter.

Which businesses drove the quarter?

Performance Films & Foil Business revenue rose 50.7% to ₹2,122.39 crore from ₹1,408.14 crore in Q2 FY26. Its EBIT increased to ₹206.23 crore from ₹118.95 crore, with an EBIT margin of 9.7%. Chemicals Business revenue rose 24.8% to ₹2,079.46 crore, while EBIT increased to ₹527.77 crore from ₹481.31 crore; its EBIT margin was 25.4%.

Technical Textiles Business revenue rose 25.5% to ₹595.11 crore from ₹474.34 crore. EBIT increased to ₹72.31 crore from ₹42.3 crore, with an EBIT margin of 12.2%. Others recorded revenue of ₹107.24 crore, up 18.1% from ₹90.83 crore, and EBIT of ₹9.68 crore, compared with ₹7.5 crore; the EBIT margin was 9.0%.

What else did the company announce?

On 21 October 2026, the board approved a project for a battery-applications aluminium foil manufacturing facility at SRF Altech’s existing site in Jetapur, Madhya Pradesh. The estimated project cost is approximately ₹600 crores, to be implemented in two phases of ₹300 crores each, with proposed capacity addition of 12000 MTPA.

The board set 30 September 2028 for completion of Phase I and 30 September 2030 for Phase II. It approved a mix of debt and internal accruals as the financing mode. The same-day results filing covered the unaudited consolidated and standalone results for the quarter and half year ended 30 September 2026, along with the limited review reports; no dividend or fund-raising filing was provided.

What did SRF's management say?

Management reiterated FY27 Chemicals Business revenue growth guidance of 15-20% and said it expected delivery towards the higher end because of the first-half performance. It also said specialty chemicals revenues could show significant growth between H1 and H2 on better volumes. Management identified geopolitical developments, supply-chain disruptions, higher raw-material prices, elevated freight costs and excess capacity in specialty chemicals as risks.

Management said the HFO project at Gopalpur was on track for commissioning in Q4 FY28, followed by 8-12 months for stabilisation and meaningful volumes. It said the Chemours project’s first plant was scheduled for Q4 FY27 and its second for Q1 FY28, with full-scale revenue from FY29. On the battery-foil project, management said Phase I would take about 23 months from board approval and total capex was about ₹600 crore for 12000 MTPA capacity.

Sameer Kashyap, President and CFO, said: “At the start of the year, we had guided to a revenue growth of 15 to 20% in our chemicals business. With a strong H1 performance delivered, we feel confident to reiterate that we expect to deliver towards the higher end of the stated guidance for FY27.” Management also said the pharma pipeline was gaining traction with two key Western customers and that the oncology lead was expected to provide near-term volumes.

How did SRF shares react?

SRF’s shares fell 4.3% within five minutes of the filing, 3.1% after 15 minutes and 3.7% after 30 minutes. The stock closed 5.2% below its pre-results close on the reaction day and was 4.2% lower by the next day’s close. By the fifth session’s close, it was 3.4% below the pre-results close.

On the reaction day, the median move for other Specialty Chemicals stocks was 3.3% lower, while the Nifty Midcap 150 fell 1.4%. SRF therefore underperformed the industry median by 1.9 percentage points on the reaction day. By the fifth session, its 3.4% decline compared with a 5.3% sector decline, a 1.9 percentage-point relative advantage.

Earlier reaction-day moves were mixed: SRF fell 4.4% on 22 July 2026 and 3.6% on 20 January 2026, but rose 7.4% on 5 May 2026. Other past moves included a 1.8% rise on 23 July 2025 and a 6.2% rise on 29 January 2025.

How did other Specialty Chemicals companies do?

A total of 51 Specialty Chemicals companies were compared for the quarter, and the median revenue growth was 28.1%. SRF’s 34.7% revenue growth was higher than the median; 30 peers grew slower than SRF and 21 grew faster. Among the 47 peers for which profit was compared, 41 reported higher profit.