💰 Financial Performance

Revenue Growth by Segment

Total revenue of INR 14,693 Cr. Segment split: Chemicals Business (45%), Packaging Films Business (40%), and Technical Textiles Business (15%). Specific YoY % growth per segment not disclosed in available documents.

Geographic Revenue Split

Exports to 100+ countries. Operations in 5 countries (India, Thailand, South Africa, Hungary). Specialty Chemicals segment has an export mix of approximately 65%.

Profitability Margins

Net Profit (PAT) of INR 1,251 Cr on revenue of INR 14,693 Cr, resulting in a Net Margin of 8.51%. Operating margins have faced pressure due to China dumping in Chemicals and oversupply in Packaging Films.

EBITDA Margin

EBITDA of INR 2,970 Cr on revenue of INR 14,693 Cr, resulting in an EBITDA margin of 20.21%. Core profitability is expected to be impacted by a moderation in margins despite revenue growth.

Capital Expenditure

Historical average of INR 2,000 Cr p.a. over 5 years. FY24 capex was INR 2,347 Cr; FY25 capex was INR 1,096 Cr. Planned capex for FY26 is INR 2,200-2,300 Cr, primarily for the Chemicals segment.

Credit Rating & Borrowing

CRISIL Ratings maintains a 'Stable' outlook. Debt/EBITDA expected to improve to 1.0-1.4x in FY26 from 1.7x in FY25. Interest coverage ratio is expected to improve to ~10 times in FY26.

⚙️ Operational Drivers

Raw Materials

Key materials include Anhydrous Hydrofluoric Acid (AHF) for fluorochemicals and resins for BOPP/BOPET films. Specific % of total cost for each material is not disclosed.

Import Sources

China (impacted by dumping), Thailand (manufacturing hub), South Africa, and Hungary.

Key Suppliers

Chemours is a key strategic partner and supplier under a distribution and manufacturing arrangement for fluoropolymers.

Capacity Expansion

Recently commissioned an aluminum foil facility (revenue from FY26). AHF bottlenecks have been sorted to increase production capability. Capex of INR 2,200-2,300 Cr planned for FY26 capacity expansion.

Raw Material Costs

Raw material costs have been volatile due to China dumping in the chemicals industry since Q2 FY24 and oversupply in packaging films since FY23, squeezing spreads.

Manufacturing Efficiency

Removal of AHF bottlenecks has increased production capability. Fund-based limits utilized at 57% on average, indicating efficient capital access.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Achieved through high capex intensity (INR 2,200-2,300 Cr in FY26) focused on Chemicals capacity, commissioning of new aluminum foil facilities, and strategic distribution/manufacturing contracts with Chemours.

Products & Services

Refrigerants (R32, R22), Specialty Chemicals intermediates, Nylon Tyre Cord Fabric (NTCF), Polyester Industrial Yarn (PIY), BOPP and BOPET packaging films, and Aluminum Foil.

Brand Portfolio

SRF (Corporate brand).

New Products/Services

Aluminum foil (revenue contribution from FY26) and new grades of fluoropolymers and fluoroelastomers under the Chemours contract.

Market Expansion

Expanding global footprint in 100+ countries; utilizing Thailand manufacturing for US market access to bypass trade barriers.

Market Share & Ranking

Largest manufacturer of Nylon Tyre Cord Fabric (NTCF) in India; market leader in refrigerants.

Strategic Alliances

Strategic distribution and manufacturing arrangement with Chemours for global fluoropolymer markets.

🌍 External Factors

Industry Trends

Recovery witnessed in Chemicals and Packaging industries since Q3 FY25. Shift toward value-added products in Technical Textiles (belting fabrics).

Competitive Landscape

Faces intense competition from Chinese manufacturers in the Chemicals segment and global oversupply in the BOPET/BOPP film markets.

Competitive Moat

Moat is sustained by market leadership in refrigerants, being the largest NTCF producer in India, and high R&D barriers in specialty chemicals.

Macro Economic Sensitivity

Sensitive to global inventory cycles and Chinese industrial output (dumping). GDP growth in 100+ export countries affects demand for industrial intermediates.

Consumer Behavior

Healthy demand for Air Conditioners is driving growth in the refrigerants segment (R32/R22).

Geopolitical Risks

Trade barriers and tariffs on Indian exports to the US; mitigated by shifting production to international units like Thailand.

⚖️ Regulatory & Governance

Industry Regulations

HFC quota positions are a key monitorable for the refrigerants business; company is managing quotas to maintain market shape.

Environmental Compliance

ESG profile supports credit risk profile; 60% of the board comprises independent directors. ESG performance of suppliers is assessed via a code of conduct.

Legal Contingencies

No penalties or strictures imposed by SEBI or Stock Exchanges in the last three years. Remuneration is within Section 197 limits of the Companies Act.

⚠️ Risk Analysis

Key Uncertainties

Cyclicality inherent in Packaging Films (PFB) and Technical Textiles (TTB). Profitability of new molecules in Chemicals depends on successful commercialization and market acceptability.

Geographic Concentration Risk

Operations in 5 countries; exports to 100+ countries. Thailand is a critical hub for US-bound exports.

Third Party Dependencies

Strategic dependency on Chemours for the fluoropolymer segment's global distribution and technology.

Technology Obsolescence Risk

Mitigated by continuous R&D and average annual capex of INR 2,000 Cr to upgrade facilities and product portfolios.

Credit & Counterparty Risk

Strong liquidity with cash/equivalents of INR 1,109 Cr and fund-based limit utilization of 57% suggests high quality of receivables and credit access.