Company Update : SRF by Motilal Oswal Financial Services Ltd
Operating performance in line
* SRF reported total revenue of INR36.4b (est. INR38.8b) in 2QFY26, up ~6% YoY. Revenue from Chemical business grew 23%YoY to ~INR16.7b, while revenue from Technical Textile/Packaging Film businesses declined 11%/1% to INR4.7b/INR14b.
* EBITDA margins expanded by 570bp YoY to 22.1% (est. 21.2%), while gross margin expanded 500bp YoY to 51.4%. As a percentage of sales, employee costs stood at 7.6% (vs. 7.4% YoY), power costs at 9.4% (vs. 10.1% YoY) and other expenses at 12.3% (vs. 12.6% YoY). EBITDA stood at INR8b (in line), up 44% YoY.
* EBIT margin in Chemical/Packaging Film expanded by 1000bp/260bp YoY to 28.9%/8.4%, while Technical Textile EBIT margin contracted by 440bp YoY to 8.9%. ? Adj. PAT grew 87% YoY to INR4.2b (est. in line). Adjusted for forex loss of INR306m in 2QFY26.
* In 1HFY26, revenue/EBITDA/adj. PAT grew 8%/38%/71% YoY to INR74.6B/INR16.3b/INR8.4b.
* At the close of business on 12th Dec’25, SRF President and CFO, Mr. Rahul Jain, will step down from his role to pursue other professional opportunities.
* In line with SRF’s strategic collaboration with The Chemours Company for the manufacturing and supply of fluoropolymers and fluoroelastomers, the Board has revised the previously sanctioned capex from INR5.95b to INR7.45b. The project is expected to be completed in a sequential manner, with the final phase scheduled for completion by Dec’26.
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