SRF shares gain 7% after solid Q4; ups capex to expand capacity

Shares of SRF Ltd. are trading higher by 7% on Wednesday, May 6, after the company reported a strong March quarter performance.

The topline and operating performance came in ahead of expectations, driven largely by robust growth in the refrigerant gases (refgas) segment, where both export volumes and realisations saw a sharp uptick.

For Q4FY26, revenue rose 7% YoY to ₹4,615 crore, ahead of the poll estimate of ₹4,112 crore.

Net profit grew 10.6% YoY to ₹582 crore, higher than the poll estimate of ₹452 crore.

EBITDA increased 7.1% to ₹1,026 crore versus ₹957 crore last year, also beating the poll estimate of ₹930 crore. EBITDA margins remained largely stable at 22.2%, slightly below expectations of 22.6%.

On the segmental front, the technical textiles business posted a sharp recovery, with EBIT rising 63% YoY and 45% sequentially to ₹65 crore.

The chemicals segment saw EBIT grow 5% YoY and 58% QoQ to ₹782 crore, while packaging films delivered strong momentum with EBIT up 47% YoY and 62% QoQ at ₹154 crore.

On the capex front, the company has approved a ₹2,300 crore investment, up from ₹1,100 crore announced in October 2024, to set up a 20 ktpa HFO plant along with a new 30 ktpa HF facility and downstream value-added derivatives.

The project will be executed in phases and is expected to be completed by February 2028.

Additionally, SRF will invest ₹88 crore towards a brownfield expansion to increase HFC capacity by 12.5 ktpa.

The company said in its investor presentation that Chinese supply is expected to remain a key factor influencing pricing across the value chain. Management added that geopolitical tensions and evolving US tariff policies are likely to induce volatility in the industry.

SRF shares ended 0.6% lower at ₹2,536.20 in the previous session and are down 17% so far this year.