SRF Share Price: SRF posted a steady set of Q4FY26 earnings, with profit rising 10.6 per cent year-on-year to Rs 582 crore and revenue growing 7 per cent to Rs 4,615 crore, reflecting resilience despite mixed conditions across its key segments. While stable margins and improved profitability offered some support, the performance was weighed down by continued weakness in the specialty chemicals business, even as refrigerant gases remained a bright spot driven by strong demand and realisations.
Following the results, brokerages have maintained a mixed stance on the stock, highlighting diverging views on near-term growth visibility and valuation.
Brokerages On SRF
Nuvama On SRF
- The brokerage maintains ‘Buy’ with a reduced target price of Rs 3,402 Rs 3,584
- Specialty chemicals stayed weak amid agrochemical headwinds and pricing pressure while refrigerant gases continued to benefit from strong HFC demand.
- Management’s FY27 optimism hinges on pricing recovery and improved agrochem fundamentals.
- Near-term headwinds in specialty chemicals though we upgrade our refrigerant gas estimates on the back of HFC capacity additions in FY28E.
- Chemicals guidance of 15–20 per cent growth for FY27, supported by strong momentum in refrigerant gases, fluoropolymers and pharma intermediates
- HFC realisations and volumes continue to remain robust while PTFE approvals from global customers and fluoropolymer ramp-up are likely to aid growth H2FY27 onwards.
- The Chemours project remains on track and management indicated that the partnership can evolve into a larger opportunity.
- SRF deferred its second BOPP line due to changing industry dynamics, reflecting disciplined capital allocation.
- While DFPA pricing remains weak, SRF is protecting margins through process improvements while pharma intermediates are reporting a much stronger pickup and emerging as a key growth driver.
Emkay on SRF
- The brokerage maintains ‘Add’ with a target price of Rs 3,000 versus Rs 3,250
- Chemicals business growth guidance maintained at 20 per cent for FY27
- CB EBIT margin is strong, led by strong volumes/realizations in refrigerant gases
- Performance films witnessed improved performance, led by improved volumes and product mix
- The technical textile business (TTB) reports a steady quarter
- SRF announced capacity addition, owing to strong demand for ref gas
- SRF expects Chinese anti-involution to aid prices going forward
- Cuts FY27/FY28E EBITDA by 5-7 per cent
Morgan Stanley on SRF
- The brokerage maintains ‘Underweight’ target price of Rs 2,209
- The company guided for 15-20 per cent chemical segment growth in FY27
- Strong refrigerant gas outlook supported by robust pricing and capacity expansion
- Specialty chemicals recovery expected to remain gradual
- Brokerage sees risks to refrigerant gas pricing as new industry capacities come onstream
- SRF managed to reroute Middle East export volumes to alternate markets
- Management expects fluoropolymer scale-up and Chemours contract ramp-up in 2HFY27
- Brokerage reiterated positive near-term chemicals outlook but remains cautious on future pricing risks
SRF Q4FY26 Result
SRF reported consolidated revenue rising 7 per cent year-on-year to Rs 4,615 crore from Rs 4,313 crore in Q4FY26. Profit for the quarter increased 10.6 per cent to Rs 582 crore compared to Rs 526 crore last year, reflecting improved profitability despite ongoing sectoral challenges. EBITDA grew 7.2 per cent YoY to Rs 1,026 crore from Rs 957 crore, while the EBITDA margin remained stable at 22.2 per cent, indicating consistent operational efficiency even amid a mixed demand environment across segments.
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