SRF Q1: consolidated PAT surges 76% YoY to ₹759 Cr as films and chemicals drive margin jump

SRF opened FY27 with a materially stronger-than-base print: consolidated revenue of ₹5,033 Cr rose 31.8% YoY (9.1% QoQ) and net profit jumped 75.5% YoY to ₹758.9 Cr (30.4% QoQ), lifting basic EPS to ₹25.60 from ₹14.58 a year ago. Crucially there was no exceptional item this quarter and none in the year-ago Q1 either, so the near-76% growth is entirely operational — not an accounting artefact. Net profit margin expanded to 15.08% from 11.32% YoY and operating margin to 20.82% from 17.17%, a broad-based margin lift across all three segments.

The standout driver was the Performance Films & Foil Business, whose consolidated segment result leapt to ₹349.7 Cr from ₹140.2 Cr (+150% YoY) on revenue of ₹2,016.7 Cr (+42%) — the overseas packaging-films subsidiaries did the heavy lifting, contributing ₹171 Cr of net profit before consolidation. Chemicals, the core, delivered revenue of ₹2,314.9 Cr (+26% YoY) and a segment result of ₹638.4 Cr (+27%), confirming the agrochem/fluorochem recovery management flagged on the January concall; Technical Textiles also nearly trebled its result to ₹107.8 Cr. This is where basis matters: standalone PAT of ₹566.3 Cr grew a more modest 42.6% YoY, so the consolidated story is far stronger than the parent's alone — readers will see both numbers and the gap is the overseas films business, not a discrepancy.

The stock went into the print at ₹2,865, up 5.3% over the past month of trading.

For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 3 consecutive quarters; revenue is at a 6-quarter high.

Against management's own framing the quarter beats: the prior concall guided to Chemicals growing 15-20% in FY27 and a Q4-onward recovery amid persistent Chinese pricing pressure, and Q1 chemicals revenue up 26% already runs ahead of that. No formal quarterly P&L guidance is given by the company and no brokerage consensus number surfaced for this specific quarter, so a street beat/miss can't be quantified. Alongside the result the board declared a first FY27 interim dividend of ₹5/share (₹148.21 Cr). The main question the print leaves open is durability — the PFB result more than doubled YoY off a favourable films cycle, and management's own caution on specialty-chemical pricing means the margin bridge needs to hold, not just print once.