SRF Ltd Q2 FY27 Results Analysis: Revenue Surges 35%, PAT Jumps 31%
SRF Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 4,904.20 Cr (+34.70% YoY) and PAT growth of +31.20% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 21, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 4,904.20 Cr (+34.70% YoY) |
| PAT (Q2) | Rs. 509.12 Cr (+31.20% YoY) |
| EBITDA margin | 19.29% (-198 bps YoY) |
| EPS (Q2) | Rs. 17.18 (+31.10% YoY) |
| Market cap | Rs. 68,602.37 Cr |
| CMP | Rs. 2,305.00 |
Quarter Snapshot
SRF delivered its highest-ever Q2 revenue of Rs.4,904 Cr, up 34.7% YoY, with PAT up 31.2% to Rs.509 Cr, while the guided seasonal step-down and PF&F margin normalisation to 9.7% materialised as management expected. Chemicals grew 24.7% YoY with a 25.4% EBIT margin, tracking at/above the guided 15-20% FY27 range, and H1 PAT of Rs.1,268 Cr already covers 69% of FY26's full-year PAT. EBITDA margin compressed 198 bps YoY to 19.29% and H1 free cash flow turned negative at Rs.−180 Cr on Rs.974 Cr of capex against a ~Rs.2,500 Cr FY27 plan.
Key Investment Insights
Key Positives
- Revenue grew 34.7% YoY to Rs.4,904 Cr, the highest-ever Q2 for SRF
- PAT grew 31.2% YoY to Rs.509.1 Cr; H1 PAT of Rs.1,268 Cr is 69% of FY26 full-year PAT of Rs.1,835 Cr
- Chemicals revenue grew 24.7% YoY with a 25.4% EBIT margin, at/above the guided 15-20% FY27 growth range for the quarter
- Performance Films & Foil revenue grew 50.7% YoY to Rs.2,122 Cr with EBIT up 73.4%, driven by the new BOPET line
- Technical Textiles EBIT grew 70.9% YoY on 25.5% revenue growth with a 12.2% EBIT margin
- Guided Q2 seasonal step-down and PF&F margin normalisation both materialised as expected
- Debt/equity steady at 0.35x with net worth up ~Rs.1,261 Cr over six months
Risk Factors
- EBITDA margin fell 198 bps YoY to 19.29% and 528 bps QoQ from Q1's 24.57%
- PF&F EBIT margin normalised to 9.7% from 17.3% in Q1; margins at this level lag the segment's 50.7% revenue growth
- H1 free cash flow was negative at Rs.−180 Cr with CFO/PAT at 0.63x on working capital absorption (inventories +Rs.590 Cr, receivables +Rs.599 Cr)
- ECF forex loss of Rs.63.1 Cr in Q2; H1 ECF loss of Rs.165.1 Cr vs Rs.21.9 Cr in H1 FY26
- Revenue declined 2.6% QoQ, consistent with guided seasonality
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.