SRF Limited reported a robust performance for the second quarter of FY27, with consolidated revenue climbing 34.7% to Rs 4,904.20 crore and net profit rising 31.1% to Rs 509.12 crore. Growth was broad-based, led by strong contributions from the Chemicals and Performance Films & Foil businesses. The firm remains in a stable financial position with a strong credit rating for its commercial paper program.
SRF Q2 Net Profit Climbs to Rs 509 Crore
Consolidated Revenue rose to Rs 4,904.20 crore, while Net Profit reached Rs 509.12 crore.
Reader Takeaway: Strong segment growth across Chemicals and Films drives profitability, though management monitors emerging labor code regulatory shifts.
What just happened
SRF Ltd reported its unaudited consolidated financial results for the quarter ended September 30, 2026. The company achieved a net profit of Rs 509.12 crore, up significantly from Rs 388.18 crore in the same period last year. Revenue from operations also saw a sharp uptick, reaching Rs 4,904.20 crore compared to Rs 3,640.19 crore in Q2 FY26. The Board approved these results on October 21, 2026, following a limited review by B S R & Co. LLP.
Why this matters
The results highlight the effectiveness of SRF's diversified portfolio. The Chemicals Business, a core pillar, reported revenue of Rs 2,079.46 crore, while the Performance Films & Foil Business saw a substantial increase to Rs 2,122.39 crore. These figures demonstrate the company's ability to scale operations in competitive global markets despite shifting macroeconomic conditions.
Risks to watch
Investors should keep an eye on potential cost headwinds. The company has noted it is closely tracking developments regarding the finalization of State Rules for New Labour Codes. Additionally, global energy prices and raw material volatility remain factors that could impact future margins within the chemical and textile segments.
Context metrics
- Basic EPS: Rose to Rs 17.18 in Q2 FY27 from Rs 13.10 in Q2 FY26.
- Commercial Paper Rating: Maintained at CRISIL A1+ and IND A1+.
- Commercial Paper Outstanding: Rs 700 crore as of September 30, 2026.
What to track next
Ongoing monitoring of the tax positions regarding Carbon Emission Reduction Certificates (CERs) is advised, following previous favorable outcomes from the ITAT. Shareholders should also watch for further updates regarding the integration of new state-level labor regulations into the company's operational framework.