(Reuters) -Indian chemicals and polymers maker SRF 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
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 Estimates (next 12 Analysts’ sentiment
months) months)
RIC PE EV/EBITDA Price/ Revenue Profit Mean # of Stock to Div
Sales growth growth rating* analyst price yield
s target** (%)
SRF Ltd 50.13 25.72 NULL 14.91 48.99 Hold 27 1.16 0.28
Coromandel 31.23 19.66 NULL 9.07 29.24 Buy 9 0.98 0.51
International Ltd
Deepak Fertilisers 15.30 8.19 NULL 10.69 17.14 Buy 1 0.87 0.68
and Petrochemicals
Corp Ltd
PI Industries Ltd 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
(Reporting by Yagnoseni Das in Bengaluru; Editing by Mrigank Dhaniwala)
