SRF Limited Earnings Summary — Q1 FY2027
SRF Reports Strong Q1 Performance with 32% Revenue Growth and Record Segment Results
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 4 consecutive quarters.
- Revenue of ₹5,033 Cr is 31.8% higher year-on-year.
- Revenue has compounded at 16.5% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹759 Cr is 75.5% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 29.8% annualised across the period.
- Operating margin stands at 24.6% in Q1 FY2027.
- Operating margin expanded by 284 bps year-on-year.
- Over the last two years operating margin has expanded by 715 bps.
- PBT margin is 19.4%.
- Expense growth of 27.0% remained below revenue growth of 31.8%.
- Operating profit of ₹1,237 Cr is 49.0% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 82/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 5,033 | 4,615 | 3,713 | 3,640 | 3,819 | 4,313 | 3,491 | 3,424 | 3,464 | 3,570 |
| Expenses | Improving | 3,797 | 3,589 | 2,933 | 2,866 | 2,989 | 3,356 | 2,872 | 2,886 | 2,861 | 2,874 |
| Operating Profit | Accelerating | 1,237 | 1,026 | 780 | 774 | 830 | 957 | 620 | 538 | 603 | 696 |
| Operating Margin | Improving | 24.6% | 22.2% | 21.0% | 21.3% | 21.7% | 22.2% | 17.8% | 15.7% | 17.4% | 19.5% |
| Other Income | Volatile | 34 | 13 | -46 | 26 | 29 | 34 | 40 | 33 | 25 | 23 |
| Interest | Stable | 69 | 62 | 66 | 71 | 80 | 89 | 96 | 94 | 97 | 90 |
| Depreciation | Stable | 223 | 220 | 217 | 212 | 203 | 195 | 194 | 194 | 188 | 186 |
| Profit Before Tax | Accelerating | 979 | 757 | 452 | 517 | 576 | 707 | 369 | 284 | 344 | 443 |
| Tax | Volatile | 220 | 175 | 19 | 129 | 144 | 181 | 98 | 82 | 92 | 21 |
| Net Profit | Accelerating | 759 | 582 | 433 | 388 | 432 | 526 | 271 | 201 | 252 | 422 |
| Net Margin | Improving | 15.1% | 12.6% | 11.7% | 10.7% | 11.3% | 12.2% | 7.8% | 5.9% | 7.3% | 11.8% |
Key Takeaways
- Consolidated Revenue increased 31.8% YoY to ₹5,033.26 crore, driven by recoveries in Chemicals and Performance Films.
- The Performance Films and Foil Business (PFB) saw a significant turnaround with segment profits more than doubling YoY to ₹349.73 crore.
- Chemicals Business remains the primary engine, contributing ₹638.41 crore in segment results, a 27% increase compared to the same quarter last year.
- Operating margins expanded to 20.82% from 17.17% YoY, reflecting improved product mix and operational efficiencies.
- The Board approved a first interim dividend of ₹5.00 per share for FY 2026-27.
- Standalone debt-equity remains healthy at 0.25x, despite substantial ongoing capital expenditures.
- Technical Textiles segment reported a sharp recovery, with EBIT rising nearly 3x YoY to ₹107.80 crore.
Management Guidance
Management remains focused on pivoting towards high-margin fluoropolymers and specialty chemicals to mitigate cyclicality in packaging and textiles. Aggressive R&D investments continue to be a priority to secure a global leadership position in chemicals.
Sentiment Shift
Improving
The reporting period shows a strong rebound in profitability and margins across all three main business segments compared to the depressed levels seen in the prior year.
Outlook
The company is transitioning from heavy capex to a realization phase where newly commissioned capacities in the chemicals segment are expected to drive long-term EBITDA growth. While packaging film margins remain sensitive to global gluts, the specialty chemicals pipeline remains robust.
From the Annual Report (Key Quotes)
“The Board has approved first interim dividend for FY 2026-27 of Rs. 5.00 per fully paid up equity share.”
“Operating margin improved to 20.82% from 17.75% in the preceding quarter.”
“Significant turnaround in Segment Results for Performance Films and Foil Business to Rs. 349.73 crores.”
Official Quarterly Documents
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This summary is AI-generated from SRF Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.