Indian chemicals maker SRF beats quarterly profit view on robust demand

SRF

12/05/2025 11:23

May 12 (Reuters) - Indian chemicals and polymers maker SRF SRFL.NS posted a bigger-than-expected rise in its fourth-quarter profit on Monday, helped by healthy demand in its mainstay chemicals business.

SRF posted a 24.6% rise in consolidated profit after tax to 5.26 billion rupees ($62 million) for the quarter ended March 31, beating analysts' average estimate of 4.81 billion rupees, according to data compiled by LSEG.

The company's chemical business, which consists of specialty chemicals, fluorochemicals, and agrochemicals among others, contributes nearly half of its revenue, rose nearly 30%.

Total revenue rose 20.8% in the quarter to 43.13 billion rupees.

For further earnings highlights, click nFWN3RK0K7

KEY CONTEXT

Commentary from global chemical companies points to a gradual volume recovery in 2025, though price recovery remains uncertain amid continued oversupply from China, analysts said.

A year-on-year recovery in demand for refrigerant gases supported growth in SRF's fluorochemicals business, aiding the performance of its chemical segment.

For fiscal year 2026, analysts flag that rising competition in non-U.S. markets and weakening demand from U.S. tariffs could pressure India's chemical sector.

PEER COMPARISON

Valuation (next 12 months)
Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Price/Sales
Revenue growth
Profit growth
Mean rating*
# of analysts
Stock to price target**
Div yield (%)
SRF Ltd
SRFL.NS
50.13
25.72
NULL
14.91
48.99
Hold
27
1.16
0.28
Coromandel International Ltd
CORF.NS
31.23
19.66
NULL
9.07
29.24
Buy
9
0.98
0.51
Deepak Fertilisers and Petrochemicals Corp Ltd
DPFE.NS
15.30
8.19
NULL
10.69
17.14
Buy
1
0.87
0.68
PI Industries Ltd
PIIL.NS
30.59
20.75
NULL
11.66
7.93
Buy
23
0.90
0.41

* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

JANUARY-MARCH STOCK PERFORMANCE

-- All data from LSEG IBES

-- $1 = 84.7990 Indian rupees

SRF JAN-MARCH https://tmsnrt.rs/3GKO4Ab

 (Reporting by Yagnoseni Das in Bengaluru; Editing by Mrigank Dhaniwala)

 ((Yagnoseni.Das@thomsonreuters.com;))