SRF Q2 Results October 21, 2026: Profit Up 31% to ₹509 Crore, but Margins Disappoint

SRF Q2 results came out on Wednesday, October 21, 2026, and the headline looks great: consolidated net profit up 31% to ₹509.12 crore from ₹388.18 crore a year ago, on revenue that grew 35%. The market didn’t buy the story, though. The miss was on margins, and that is where the stock got hurt.

SRF Q2 results: the key numbers

According to the reviewed results filed with NSE, consolidated revenue from operations for the September quarter was ₹4,904.20 crore against ₹3,640.19 crore in the same quarter last year. Total income, which adds other income, came to ₹4,929.14 crore versus ₹3,665.90 crore.

Profit before tax rose to ₹671.04 crore from ₹517.05 crore. In the company’s press release, operational EBIT, which is the sum of segment profits, went up 26% to ₹816 crore from ₹650 crore.

Against the June quarter the picture is weaker. Revenue slipped about 2.6% from ₹5,033.26 crore, and net profit fell roughly 33% from ₹758.87 crore. Part of that is a forex hit. The filing shows an exchange fluctuation loss of ₹63.13 crore in Q2, roughly double the ₹30.63 crore a year earlier, though lower than Q1’s ₹101.99 crore. For the first half, revenue is up 33% to ₹9,937 crore and profit is up 55% to ₹1,267.99 crore.

Where the margin went

CNBC-TV18 reported EBITDA of ₹946 crore, up 22.1% year on year, with the margin down 200 basis points to 19.3% from 21.3%. We rebuilt that from the filing (profit before tax plus finance cost and depreciation, minus other income) and got the same ₹946 crore and 19.3%. The channel’s poll had expected ₹1,055 crore of EBITDA, a 22.5% margin and ₹598 crore of profit. Revenue actually beat its ₹4,695 crore estimate, so this was a quality-of-growth miss, not a demand miss.

The segment table shows why. The Chemicals business, SRF’s biggest profit engine, grew revenue 25% to ₹2,079 crore, but its segment profit rose only 10% to ₹528 crore. The company said fluorochemicals saw strong refrigerant volumes and firm pricing, while specialty chemicals dealt with global pricing trends, overcapacity in China and geopolitics.

Performance Films & Foil was the star. Revenue jumped 51% to ₹2,122 crore and segment profit rose 73% to ₹206 crore, even as the company flagged that film demand cooled after customers stocked up in Q1. Technical Textiles grew revenue 25% to ₹595 crore, with segment profit up 71% to ₹72 crore.

₹600 crore battery foil plant

The board also cleared about ₹600 crore for a battery-grade aluminium foil plant with roughly 12,000 tonnes a year of capacity, aimed at lithium-ion and sodium-ion cells. A separate NSE disclosure says wholly owned subsidiary SRF Altech will build it at its Jetapur site in Madhya Pradesh in two ₹300 crore phases, due by September 2028 and September 2030, funded by a mix of debt and internal accruals.

How the stock reacted

Per CNBC-TV18, SRF shares fell as much as 6.5% after the numbers and were trading 5.3% lower at ₹2,302.1 when it checked, leaving the stock down 25% for the year. BusinessLine (PTI) carried the same ₹509.12 crore profit figure.

What it means for investors

Growth isn’t the problem at SRF. The worry is that chemicals profit is growing far slower than chemicals revenue, and that is the business the valuation leans on. Watch the next couple of quarters for whether the efficiency drives the company mentioned show up in segment margins. For another set of numbers from the same evening, see Mahindra Finance’s Q2 results, and for the method, our guide on how to analyse quarterly results.

Disclaimer: This article is for information and education only and is not investment advice. Please do your own research or speak to a SEBI-registered adviser before making investment decisions.