SRF earnings increased in the second quarter of fiscal 2027, with consolidated revenue rising 35% year on year to INR 4,904 crore and profit after tax climbing 31% to INR 509 crore. In its October 22, 2026 earnings update, management reiterated expectations for Chemicals revenue growth near the upper end of its 15%–20% full-year range, while cautioning that higher costs continued to pressure margins.
Key Takeaways
- Fluorochemicals and Performance Films and Foil supported strong quarterly revenue growth.
- Management retained its Chemicals growth range rather than raising guidance, with margin recovery still uncertain.
- New refrigerant and foil investments face lengthy commissioning, stabilization and customer-qualification periods.
Table of Contents
- SRF earnings reflect stronger volumes and product mix
- Chemicals growth outlook holds, but margins remain uncertain
- HFO investment has a long path to meaningful sales
- Foil flexibility helps bridge customer qualification
- Conclusion
SRF earnings reflect stronger volumes and product mix
The Fluorochemicals business benefited from higher hydrofluorocarbon, or HFC, volumes, improved realizations and expansion into markets including the Middle East. Performance Films and Foil revenue increased 51% year on year, supported by value-added products and strong asset utilization.
Profit grew more slowly than revenue, while Chemicals segment margins declined from the preceding quarter. The results therefore show a stronger sales performance without a corresponding improvement across all measures of profitability.
| Item | Details |
|---|---|
| Q2 FY27 consolidated revenue | INR 4,904 crore; up 35% year on year |
| Q2 FY27 profit after tax | INR 509 crore; up 31% year on year |
| Performance Films and Foil revenue growth | 51% year on year |
| FY27 Chemicals revenue guidance | 15%–20% growth; management expects the higher end |
Chemicals growth outlook holds, but margins remain uncertain
President and Chief Financial Officer Samir Kashyap said a specialty chemicals ramp-up and continued volume recovery supported expectations for Chemicals revenue growth at the higher end of the 15%–20% FY27 range. That remains management guidance, not a completed full-year result.
Specialty Chemicals demand was recovering only in selected areas, and pricing pressure limited the ability to pass through higher costs. Kashyap said freight expenses had risen 15%–20% or more, depending on the route, amid Middle East disruptions and longer shipping journeys.
The US refrigerant market was softer and purchasing patterns had changed. Kashyap said SRF could redirect volumes to newer markets without sacrificing profitability, but he stopped short of promising a return to 28%–30% Chemicals margins.
HFO investment has a long path to meaningful sales
SRF’s refrigerant portfolio and pilot-plant capabilities include HFC products and a dedicated pilot plant for HFO 1234yf intended for automobile markets. This provides product-development context for the company’s planned commercial HFO expansion, rather than evidence of its latest financial performance.
Kashyap described the initial commercial HFO strategy as largely focused on Western markets, where SRF already has distribution relationships and customers. He expected prices to decline after patent expiry, while remaining at a substantial premium to HFC prices; he did not provide a specific pricing range.
Management cited February 2028 readiness for the HFO project, followed by an expected eight-to-12-month stabilization period. Meaningful volumes were expected only 10–12 months after readiness, separating plant completion from a material sales contribution.
Foil flexibility helps bridge customer qualification
The planned INR 600 crore, 12,000-tonne-per-year aluminum foil project will use a universal mill capable of producing both battery-grade and high-end packaging foil. Kashyap said battery-customer qualification takes about two years, making that production flexibility important during the approval process.
Other projects also require time to reach full output. Management expects the first QMoS plant in Q4 FY27 and the second in Q1 FY28, with full-stream revenue from the start of FY29 after ramp-up.
Conclusion
The next operating milestone is the first QMoS plant planned for Q4 FY27. Before the larger projects contribute at scale, SRF’s near-term outlook rests on delivering its expected Chemicals revenue growth while managing input and freight costs.
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