SRF Ltd – Chemicals, Films, Textiles and a P/E Higher Than Bollywood Star Fees
1. At a Glance
SRF Ltd (CMP ₹2,978, Mcap ₹88,331 Cr) is a 50-year-old conglomerate that makes everything from refrigerant gases to BOPP films to tyre cords. It’s basically the Amazon of industrial raw materials, except here customers don’t leave 1-star reviews, they just dump Chinese supply on you. Quarterly profits jumped 71% YoY, but the stock trades at a P/E of 62 – pricier than your overpriced multiplex popcorn.
2. Introduction
SRF started in 1970, and in true Indian style, diversified into anything remotely profitable. Chemicals, textiles, packaging films, aluminium foil—SRF has its fingers in every possible pie, which is ironic because their films are used to wrap actual pies.
But being a jack of many trades means constant juggling. The Chemicals division has faced destocking and Chinese dumping. Packaging films are stuck in a down cycle thanks to overcapacity. Technical textiles are dragged by global tyre demand. The one bright spot? Their “Other” business—coated and laminated fabrics—because apparently billboards and hoardings never go out of fashion in India.
Investors meanwhile are staring at the ₹88K Cr valuation and wondering: is SRF an industrial powerhouse or a flex-banner company with an identity crisis?
3. Business Model – WTF Do They Even Do?
SRF is like that uncle who dabbles in too many businesses, but somehow makes it work.
Chemicals (41%): Specialty chemicals for agro and pharma, plus refrigerant gases and fluoropolymers. Basically, chemistry that either saves crops or cools your AC.
Packaging Films (40%): PETLAR and OPLAR brands—used for food and FMCG. They also make aluminium foils, including a shiny new 20,000 MTPA facility in Madhya Pradesh.
Technical Textiles (15%): Tyre cords and conveyor belts. Yes, SRF literally helps tyres roll.
Other (3%): Coated fabrics for hoardings, sports, and defence. Because nothing screams diversification like flex boards for your cousin’s wedding.
Revenue split: India 45%, Exports 55%. Over 100 countries buy SRF’s stuff, so chances are your shampoo sachet in Kenya and your chips packet in Brazil both owe their existence to SRF.
4. Financials Overview
Source table
Metric
Latest Qtr (Jun ’25)
YoY Qtr (Jun ’24)
Prev Qtr (Mar ’25)
YoY %
QoQ %
Revenue
₹3,819 Cr
₹3,464 Cr
₹4,313 Cr
10.2%
-11.5%
EBITDA
₹830 Cr
₹603 Cr
₹957 Cr
37.6%
-13.3%
PAT
₹432 Cr
₹252 Cr
₹526 Cr
71.4%
-17.8%
EPS (₹)
14.6
8.5
17.8
71.4%
-18.0%
👉 Commentary: SRF’s profits doubled YoY, but the margin cycle is volatile. One quarter they look like RIL, next quarter like a mid-cap chemical struggler.
