SRF Limited, a diversified chemicals and materials manufacturer, reported strong financial results for the second quarter of FY27, with consolidated net profit rising 31% year-on-year to ₹509 crore. The company had reported a net profit of ₹388 crore in the corresponding quarter of the previous financial year.
Consolidated revenue increased 35% to ₹4,904 crore in Q2 FY27, compared with ₹3,640 crore in Q2 FY26. Operational earnings before interest and tax (EBIT) rose 26% to ₹816 crore from ₹650 crore a year earlier. The company also announced a ₹600 crore investment in a new battery-grade aluminium foil manufacturing facility to serve the energy storage and electric vehicle sectors.
SRF Limited Q2 Results : Key Financial Highlights
Consolidated results
- Revenue from operations: ₹4,904 crore, up 35% year-on-year from ₹3,640 crore.
- Net profit (PAT): ₹509 crore, up 31% from ₹388 crore.
- Operational EBIT: ₹816 crore, up 26% from ₹650 crore.
- EBITDA: Approximately ₹946 crore, up 22% from ₹774 crore.
- EBITDA margin: 19.3%, compared with 21.3% in Q2 FY26.
Note: Operational EBIT and EBITDA are different financial measures. EBITDA margin declined despite higher revenue and profit.
Chemicals Business Revenue Rises 25%
SRF’s Chemicals Business reported a 25% increase in segment revenue to ₹2,079 crore in Q2 FY27, compared with ₹1,667 crore in the year-ago quarter. Segment operating profit increased 10% to ₹528 crore from ₹481 crore.
The Fluorochemicals Business benefited from strong refrigerant sales volumes and positive pricing trends across key products. Meanwhile, the Specialty Chemicals Business continued to operate amid changing global prices, excess industry capacity in China and geopolitical uncertainty.
The company said both its Fluorochemicals and Specialty Chemicals businesses continued working on operational efficiency initiatives.
Performance Films and Foil Business Records Strong Growth
The Performance Films and Foil Business was a key contributor to SRF’s quarterly performance. Segment revenue increased 51% year-on-year to ₹2,122 crore from ₹1,408 crore.
Operating profit for the segment rose 73% to ₹206 crore, compared with ₹119 crore in Q2 FY26. The business also achieved its highest-ever packed production of films during the quarter.
However, the company noted that demand for films was moderated by inventory build-up following higher purchasing activity during the previous quarter. Demand for aluminium foil remained healthy.
Technical Textiles Business Reports Higher Profit
SRF’s Technical Textiles Business recorded a 25% increase in segment revenue to ₹595 crore, compared with ₹474 crore in the corresponding quarter last year.
Operating profit increased 71% to ₹72 crore from ₹42 crore, supported by healthy demand and improved margins.
Revenue from other businesses, including coated and laminated fabrics, increased 18% to ₹107 crore, while operating profit rose 29% to ₹10 crore.
SRF Approves ₹600 Crore Battery-Grade Aluminium Foil Facility
Alongside its quarterly results, SRF announced a capital investment of approximately ₹600 crore to establish a battery-grade aluminium foil manufacturing facility in India through its wholly owned subsidiary, SRF Altech Limited.
The proposed facility will be located at the subsidiary’s existing site in Jetapur, Madhya Pradesh, and will have a planned capacity of approximately 12,000 metric tonnes per annum.
The investment will be completed in two phases:
- Phase I: Investment of ₹300 crore, with completion targeted by September 2028.
- Phase II: Investment of ₹300 crore, with completion targeted by September 2030.
The facility will manufacture aluminium foil for lithium-ion and sodium-ion batteries, targeting growing demand from energy storage and electric mobility applications.
This investment represents SRF’s move to expand its portfolio of value-added materials for emerging industries.
SRF H1 FY27 Results: Revenue Rises 33%
For the first half of FY27, SRF reported consolidated revenue of ₹9,937 crore, up 33% from ₹7,459 crore in the corresponding period last year.
Consolidated net profit for the six-month period increased 55% to ₹1,268 crore, compared with ₹820 crore in H1 FY26.
The first-half performance reflects growth across the company’s major business segments.
What Should Investors Watch?
SRF’s Q2 FY27 results show strong year-on-year growth in revenue and net profit. Its Performance Films and Foil Business recorded particularly strong growth, while the Technical Textiles Business also delivered improved operating profit.
However, the decline in EBITDA margin from 21.3% to 19.3% indicates that profitability relative to revenue came under pressure. Investors may also monitor demand trends in specialty chemicals, operating costs and execution of the planned battery-grade aluminium foil project.
The new investment could help SRF expand into battery materials over the coming years, although the project is still in the development stage and its future financial contribution remains uncertain.
Conclusion
SRF Limited reported a 35% increase in consolidated revenue to ₹4,904 crore and a 31% rise in net profit to ₹509 crore in Q2 FY27. Growth in its Performance Films and Foil and Technical Textiles businesses supported the quarterly performance.
The company’s planned ₹600 crore investment in battery-grade aluminium foil manufacturing adds another development to watch as India’s energy storage and electric mobility industries expand.
Source: SRF Limited’s official Q2 and H1 FY27 financial results and capital expenditure announcement dated October 21, 2026. Read the official company announcement.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Investors should conduct their own research or consult a qualified financial adviser before making investment decisions.
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