1. At a Glance
SRF Ltd just pulled off a 71% PAT growth flex in Q1 FY26. Revenue? ₹3,819 Cr. Capex? ₹740 Cr approved in a single board meeting. Shareholders? Still wondering how a chemical company is out-earning their entire family tree. From BOPP films to specialty chemicals, SRF is playing a multi-inning game—with a lab coat on.
2. Introduction with Hook
Imagine a Swiss Army knife… but it smells like solvents, prints on plastic, and manufactures aluminum foils. That’s SRF. A company that’s doing so many things, your CA might faint trying to model it.
Key Stat #1: Net profit grew 71% YoY in Q1 FY26 to ₹432 Cr.
Key Stat #2: Approved ₹740 Cr capex for two new plants while most companies can’t even approve tea budgets.
SRF doesn’t just make stuff—it compounds it. Literally and financially.
3. Business Model (WTF Do They Even Do?)
SRF does:
- Specialty Chemicals: The “secret sauce” for your pesticides, pharma and new-age applications.
- Packaging Films: Basically glorified gift wrap for industrial goods.
- Technical Textiles: Tyre cords, belting fabrics, industrial yarns. Sexy? No. Profitable? Yes.
- Fluorochemicals: Gases that’ll make your ACs colder and your margins hotter.
In short: They manufacture niche stuff no one understands but everyone needs—like an engineering student with social skills.
4. Financials Overview
| Metric | Q1 FY26 | YoY Change |
|---|---|---|
| Revenue | ₹3,819 Cr | +10.23% |
| EBITDA | ₹830 Cr | +19% approx |
| PAT | ₹432 Cr | +71.4% |
| OPM | 22% | Same as last Q |
| EPS | ₹14.58 | vs ₹8.51 YoY |
Commentary:
Margins are holding like duct tape on a leaking bucket—tight but functional. Growth in profit is driven by chemicals. The packaging segment? Still decent, just not Instagram-worthy.
5. Valuation
Method 1: P/E Based
- EPS (TTM): ₹48.26
- SRF’s current P/E: 66.1
- Realistic P/E Range: 35x–45x
- Fair Value Range: ₹1,689 – ₹2,171
Method 2: EV/EBITDA
- EBITDA (FY25): ₹2,718 Cr
- Market Cap: ₹94,617 Cr
- EV/EBITDA: ~35x (Yikes!)
- Acceptable Range: 18x–24x
- Fair Value Range: ₹52,000–₹65,000 Cr → ~₹1,750 – ₹2,200/share
Verdict:
If you’re paying 66x earnings, I hope they’re packaging unicorn blood. Wait for a correction or build a temple to hope.
6. What’s Cooking – News, Triggers, Drama
- ₹740 Cr Capex in one board meeting:
- ₹490 Cr for a new 60,000 MTPA BOPP Film Plant (Indore)
- ₹250 Cr for agrochemicals expansion (Dahej)
- Dividend: Rs. 4/share. SRF’s idea of “generous”.
- Promoter stake steady at 50.26%
- Q1 growth: Chemicals division to the rescue; packaging still recovering post-COVID plastic guilt.
Plot twist level: K-dramas would be jealous.
7. Balance Sheet
| Item | FY25 |
|---|---|
| Equity Capital | ₹297 Cr |
| Reserves | ₹12,329 Cr |
| Borrowings | ₹4,726 Cr |
| Other Liabilities | ₹4,169 Cr |
| Fixed Assets | ₹13,720 Cr |
| Cash | ₹2,487 Cr (via CFO) |
Punchline:
Debt: Manageable. Not “Titanic hitting iceberg” yet.
Reserves: Fatter than a Diwali gift box.
8. Cash Flow – Sab Number Game Hai
| Year | Ops CF | Inv CF | Fin CF |
|---|---|---|---|
| FY23 | ₹2,902 Cr | -₹2,964 Cr | ₹220 Cr |
| FY24 | ₹2,094 Cr | -₹2,231 Cr | -₹72 Cr |
| FY25 | ₹2,487 Cr | -₹1,482 Cr | -₹1,071 Cr |
Insight:
CFO is solid, but cash leaks faster than your roommate’s shampoo. Investing like it’s Diwali every month. At least they’re funding growth, not parties.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 Value |
|---|---|
| ROCE | 12% |
| ROE | 10.4% |
| P/E | 66.1 |
| OPM | 20% |
| D/E | ~0.4 |
Comment:
ROCE isn’t exactly Tinder-worthy anymore, but still decent. P/E? Let’s just say it’s got main-character energy and side-plot results.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | EBITDA | PAT |
|---|---|---|---|
| FY23 | ₹14,870 Cr | ₹3,529 Cr | ₹2,162 Cr |
| FY24 | ₹13,139 Cr | ₹2,584 Cr | ₹1,336 Cr |
| FY25 | ₹14,693 Cr | ₹2,718 Cr | ₹1,251 Cr |
Observation:
Revenue’s dancing the cha-cha. PAT looks like it’s recovering from a hangover. Q1 FY26 shows signs of life though.
11. Peer Comparison
| Company | Rev (Cr) | PAT (Cr) | P/E |
|---|---|---|---|
| SRF | 15,048 | 1,431 | 66.1 |
| Tata Chemicals | 14,887 | 263 | 94.2 |
| Deepak Fertilis. | 10,274 | 933 | 21.6 |
| GNFC | 7,892 | 597 | 13.6 |
Quote:
“SRF is the overachiever in a classroom of backbenchers. Except it’s asking for Harvard fees.”
12. Miscellaneous – Shareholding, Promoters
- Promoter stake: Rock solid at 50.26%
- FII holding: 18.24% – clearly some global fund manager thinks BOPP is sexy.
- DII stake: 18.85% – domestic boys showing love.
- Public holding: Down to 12.61%. Maybe they’re scared of the P/E.
- SMK Wellness reclassified from promoter to public. Can someone explain what a “Wellness” firm was doing in chemicals anyway?
13. EduInvesting Verdict™
SRF is like that engineering topper who secretly DJs at night. Boring on the surface, wild on the inside.
✅ Q1 was strong.
✅ Capex shows growth hunger.
❌ But P/E is priced like they discovered anti-aging serum.
Verdict:
“Impressive lab work, but don’t expect business class legroom at economy price. Keep the goggles on.”
Metadata
Written by EduInvesting Team | 23 July 2025
Tags: SRF Ltd, Chemicals, Capex, EduInvesting Premium
