SRF Q1 FY27 Results (NSE: SRF)
Signal: Margin expansion
The read
A standout quarter with revenue crossing ₹5,000 Cr for the first time, EBITDA margin expanding 270bps to 25.2% — the highest in at least six quarters — driven by operating leverage (employee costs +15% vs revenue +32%) and lower finance costs. All segments delivered double-digit revenue growth with especially strong turnarounds in Technical Textiles and Performance Films. The consolidated PAT of ₹759 Cr (+75.5% YoY) was well ahead of standalone, highlighting subsidiary contributions. No exceptional items; earnings quality is clean with low other-income dependency.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹5,033.26 Cr | 31.8% | 9.1% |
| EBIT | ₹1,047.77 Cr | 59.8% | |
| Net profit | ₹758.87 Cr | 75.5% | |
| EPS | ₹25.6 | 75.6% | |
| EBIT margin | 25.2% |
P&L walk
Strong 31.8% revenue growth combined with fixed cost leverage (employee cost +14.9%, depreciation +9.7%, finance cost -14.1%) drove EBITDA margin up 270bps to 25.2%; PAT grew 75.5% YoY, aided by lower interest and higher operating profit.
Segments
The Chemicals Business (CB) remains the largest profit contributor (PBIT ₹615 Cr, 70% of segment total), while Technical Textiles PBIT surged 187% YoY to ₹108 Cr, reflecting a sharp turnaround. Performance Films also grew PBIT 47% YoY. Subsidiaries contributed ₹193 Cr to consolidated PAT beyond the standalone ₹566 Cr, confirming strong offshore execution.
Key positives
- Revenue grew 31.8% YoY to ₹5,033 Cr, the highest quarterly figure, led by all three core segments
- EBITDA margin expanded 270bps YoY to 25.2%, the best in recent history, reflecting operating leverage and controlled costs
- Consolidated PAT ₹759 Cr (+75.5% YoY) with subsidiaries contributing ₹193 Cr above standalone PAT
- Technical Textiles PBIT jumped 187% YoY to ₹108 Cr, signalling a structural turnaround
- Finance costs declined 14.1% YoY, aided by lower debt (D/E 0.25 vs 0.26 a year ago)
- EPS grew 75.6% to ₹25.6, tracking PAT with no equity dilution
Key concerns
- Exchange currency fluctuation loss of ₹102 Cr (vs a gain of ₹8.7 Cr in Q1FY26) created a ₹111 Cr swing in expenses, partially offsetting operating gains
- QoQ revenue growth of 9.1% decelerated from the 20.8% YoY in Q4FY26, though seasonally Q4 tends to be strong
- Raw material costs as % of revenue (48.8%) are close to last year's 48.5% despite gross margin improvement; further input cost inflation could compress margins
Research and educational content only. Not investment advice.