SRF Q1 FY27 Results Analysis: PAT Surges 75.5%, Performance Films Margins Expand Sharply

SRF Ltd reported Q1 FY27 numbers with revenue of Rs. 5,033.26 Cr (+31.81% YoY) and PAT growth of +75.53% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

SRF delivered a strong Q1 with 31.8% revenue growth and 75.5% PAT growth, driven by all segments. The Performance Films business saw a cyclical recovery with margins expanding sharply, supported by US tariff cuts and China's anti-involution measures. The company's chemicals segment grew ahead of its full-year guidance, and the balance sheet strengthened with improved debt-to-equity ratio.

Key Investment Insights

Key Positives

• Revenue from operations grew 31.81% YoY to Rs.5,033.26 Cr
• PAT grew 75.53% YoY to Rs.758.87 Cr
• EBITDA margin expanded 284 bps YoY to 24.57%
• Chemicals Business revenue grew 25.88% YoY, ahead of management's full-year guidance of 15-20% growth
• Performance Films & Foil EBIT margin improved from 9.89% to 17.34% YoY
• Technical Textiles EBIT margin improved from 8.07% to 18.06% YoY
• D/E ratio improved to 0.32 from 0.36 QoQ
• Interim dividend increased to Rs.5 per share from Rs.4

Risk Factors

• Forex loss of Rs.101.99 Cr versus a gain of Rs.8.69 Cr in Q1FY26, a negative swing of ~Rs.111 Cr
• Cost of materials consumed as % of revenue increased 161 bps YoY to 52.18%
• The large forex loss is a real economic cost and volatile