SRF Q4 Results: Profit Rises 25%, Beats Estimates

SRF Ltd.'s consolidated net profit rose nearly 25% in the fourth quarter of fiscal 2025, beating analysts' estimates.

The chemical manufacturer's consolidated bottom line stood at Rs 526 crore in the quarter ended March 31, 2025, according to an exchange filing on Monday. That compares with the Rs 467.7-crore consensus estimate of analysts tracked by Bloomberg. Net profit growth was offset by higher tax outgo compared to last year.

SRF Q4FY25 Result Highlights (Consolidated, YoY)

• Revenue up 21% at Rs 4,313 crore versus Rs 3,570 crore (Bloomberg estimate: Rs 4,059 crore).

• Ebitda up 37.6% at Rs 957 crore versus Rs 696 crore (Estimate: Rs 877. 7 crore)

• Ebitda margin at 22.2% versus 19.5% (Estimate: 21.6%)

• Net profit up 24.6% at Rs 526 crore versus Rs 422 crore (Estimate: Rs 467.7 crore)

The chemicals business reported an increase of 30% in revenue to Rs 2,355 crore during Q4, compared to Rs 1,816 crore in the same period last year. The operating profit of the chemicals business increased 50% from Rs 498 crore to Rs 748 crore in the fourth quarter, against the corresponding period last year.

During the quarter, the specialty chemicals business demonstrated strong performance, driven by positive momentum in recently launched products and a pick-up in demand for certain key agrochemical intermediates. The company's cost-competitive pricing strategies, along with robust export market performance, further contributed to revenue growth.

In Q4, the performance of the fluorochemicals business was robust due to strong domestic demand for refrigerants, particularly for room air conditioners, resulting in record-high domestic sales of refrigerant gases.

The performance films and foil business reported an increase of 19% in revenue from Rs 1,182 crore to Rs 1,412 crore during Q4, compared to the same period last year. The operating profit of the segment increased 216% to Rs 105 crore in Q4, against Rs 33 crore in the same period last year.

Margins improved for both BOPET and BOPP due to increased capacity utilisation, driven by rising demand. The business achieved its highest ever packed production and focused on profitability by commercialising new value added products and boosting sales of high-impact value-added products.

The technical textiles business reported a decrease of 2% in revenue to Rs 458 crore during the quarter, compared to Rs 469 crore in the same period last year.

The operating profit of the business decreased 43% from Rs 70 crore to Rs 40 crore in Q4, over last year. During the quarter, the demand for polyester tyre cord fabric and polyester industrial yarn remained robust, while volumes of nylon tyre cord fabric were flat. The performance of belting fabrics was affected by the influx of low-cost imports from China, which had an impact on the overall performance of the business.

Other businesses reported a decrease of 18% in revenue to Rs 87 crore in Q4, against Rs 106 crore last year. The operating profit decreased 20% from Rs 16 crore to Rs 12 crore in Q4.

SRF retained its market leadership in coated fabrics, by boosting sales of value-added products, despite weak demand for food-grade liners.

“We have finished the year on a very strong note, supported by seasonal factors. That aside, we will go into the new financial year carrying this momentum. However, we are dealing with a very volatile global economy at the moment and while we remain cautiously optimistic about the year ahead, the risks remain” said Chairman and Managing Director, Ashish Bharat Ram

Shares of SRF closed 0.41% higher at Rs 3,020 apiece on the BSE, compared to a 3.74% advance in the benchmark Sensex.