About SRF Ltd
SRF Limited is one of India's leading specialty chemicals companies with businesses across:
- Specialty Chemicals
- Fluorochemicals
- Packaging Films
- Technical Textiles
The company has built a strong presence in export markets and continues to benefit from the China+1 manufacturing trend.
FY25 Financial Highlights
SRF reported consolidated revenue of ₹14,693 crore in FY25, up nearly 12% from ₹13,139 crore in FY24. Net profit stood at ₹1,251 crore despite a challenging global chemical environment.
| Metric | FY25 |
|---|---|
| Revenue | ₹14,693 Cr |
| Net Profit | ₹1,251 Cr |
| EBIT | ₹2,336 Cr |
| EPS | ₹42.2 |
| Revenue Growth | 11.8% |
Balance Sheet Analysis
Strong Financial Position
| Balance Sheet Item | FY25 |
|---|---|
| Total Assets | ₹21,557 Cr |
| Shareholder Equity | ₹12,626 Cr |
| Cash & Investments | ₹11,218 Cr |
| Debt-to-Equity | 0.37x |
| Net Worth | ₹12,626 Cr |
What This Means
✅ Strong asset base
✅ Healthy cash reserves
✅ Low financial leverage
✅ Ability to fund future expansions
A debt-to-equity ratio of only 0.37 indicates that SRF's balance sheet remains conservative compared with many manufacturing companies.
Profitability Trends
| Year | Revenue | Net Profit |
|---|---|---|
| FY23 | ₹14,592 Cr | ₹2,162 Cr |
| FY24 | ₹12,910 Cr | ₹1,336 Cr |
| FY25 | ₹14,358–14,693 Cr | ₹1,251 Cr |
Although profits have moderated from FY23 peak levels, the business remains highly profitable and financially stable.
Growth Drivers (2026–2030)
Specialty Chemicals
- New product launches
- Export growth
- Increased outsourcing by global chemical companies
Fluorochemicals
- Rising demand for refrigerant gases
- Growing electronics and semiconductor applications
Packaging Films
- Capacity expansion
- Export opportunities
Capex Expansion
Management continues investing in new chemical facilities, positioning the company for future earnings growth.
Risks
❌ Chemical industry cycles
❌ Margin pressure from Chinese competition
❌ Large capital expenditure projects
❌ Temporary decline in ROE and ROCE
ROE has moderated to around 10% and ROCE to about 12%, lower than historical highs achieved during FY22–FY23.
Long-Term Technical Levels
| Level | Price Range |
|---|---|
| Strong Support | ₹2,350–2,450 |
| Support | ₹2,600 |
| Resistance | ₹3,200–3,350 |
| Major Breakout | Above ₹3,350 |
Long-Term Price Target
| Period | Target |
|---|---|
| 1–2 Years | ₹3,300–3,800 |
| 3–5 Years | ₹4,500–5,500 |
| Bull Case | ₹6,000+ |
These targets assume successful execution of expansion projects and recovery in specialty chemical demand.
Investment Verdict
SRF remains one of India's highest-quality chemical sector companies. The balance sheet is strong, debt is under control, and the company has multiple growth engines through specialty chemicals and fluorochemicals. While earnings may fluctuate with industry cycles, long-term investors can consider accumulating the stock during market corrections.
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