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.

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