SRF Ltd. has announced a robust financial performance for the fourth quarter of fiscal year 2025, with net profit surging by 24.59% to ₹526 crore. This impressive growth surpasses analysts' estimates and reflects strong operational performance. The company's revenue also saw a significant rise, increasing by 20.2% to ₹4,313.34 crore compared to the same period last year.

Key Financial Highlights:

• Net Profit: Increased by 24.59% to ₹526.06 crore, compared to ₹422.21 crore in Q4FY24. This figure exceeded the Bloomberg estimate of ₹467.7 crore.
• Revenue from Operations: Rose by 20.83% to ₹4,313.34 crore, up from ₹3,569.74 crore in the corresponding quarter of the previous fiscal year. This also surpassed the Bloomberg estimate of ₹4,059 crore.
• EBITDA: Stood at ₹957 crore, marking a substantial 38% year-on-year increase.
• Earnings Before Interest and Tax (EBIT): Increased by 47% to ₹906 crore in Q4FY25, compared to ₹616 crore in the same period last year.
• Basic and Diluted Earnings Per Share: Stood at ₹17.75, compared to ₹14.24 a year ago.

Segmental Performance:

• Chemicals Business: Revenue increased by 30 percent year-on-year, reaching ₹2,355 crore. The segment's operating profit surged by 50 percent to ₹748 crore, compared to ₹498 crore in the same quarter last year. The growth was attributed to positive momentum in newly launched products and increased demand for key agrochemical intermediates.
• Fluorochemicals Business: Registered solid performance, contributing to the overall growth of the chemical segment, aided by a year-on-year recovery in demand for refrigerant gases.
• Technical Textiles: Delivered a 9% revenue rise, with coated fabrics achieving record sales.
• Packaging Films: Experienced a modest 3% revenue growth to ₹1,153 crore.

Full Year Performance (FY25):

• Revenue: Increased by 12% from ₹13,139 crore to ₹14,693 crore.
• EBIT: Increased by 6% from ₹2,201 crore to ₹2,336 crore.
• Profit Before Tax (PBT): Stood at ₹1,704 crore, nearly unchanged from the previous year's ₹1,692 crore.
• Profit After Tax (PAT): Registered at ₹1,251 crore.

Management Commentary:

Ashish Bharat Ram, Chairman and Managing Director of SRF Limited, acknowledged the tailwinds from seasonal factors but remained cautiously optimistic due to the volatile global economic backdrop. He stated, "We have finished the year on a very strong note, supported by seasonal factors. That aside, we will go into the new financial year carrying this momentum. However, we are dealing with a very volatile global economy at the moment, and while we remain cautiously optimistic about the year ahead, the risks remain".

Market Reaction:

On Monday, May 12, 2025, shares of SRF closed 0.41% higher at ₹3,020 apiece on the BSE.

Analysts' Perspective:

Analysts suggest that a gradual volume recovery is expected in 2025 for global chemical companies. However, price recovery remains uncertain due to continued oversupply from China. It is also flagged that rising competition in non-U.S. markets and weakening demand from U.S. tariffs could pressure India's chemical sector for fiscal year 2026.

Overall, SRF's Q4 results indicate a strong finish to fiscal year 2025, driven by robust performance in its chemicals business and supported by seasonal factors. While the company remains cautiously optimistic about the future, it acknowledges the challenges posed by the volatile global economy and increasing competition.