Chairman's Message

Dear Shareholders,

FY26 reaffirmed a defining reality of our times – that uncertainty is no longer episodic, but structural. The global environment continued to be marked by geopolitical tensions, supply chain disruptions, and shifting trade dynamics, testing the resilience of businesses worldwide.

In such an environment, resilience is not just about endurance, but about the ability to respond with clarity, agility, and purpose. At SRF, this philosophy guided our actions through the year. We remained focussed on disciplined execution, strengthening our competitive position, and continuing to invest for the future.

I am pleased to share that despite prevailing headwinds; the Company delivered a strong performance. Revenue grew by 7% to ₹ 15,787 crore, while Operational EBIT increased by 29% to ₹ 3,008 crore and Profit After Tax rose by 47% to ₹ 1,835 crore – making this our second-best performance in history.

More importantly, these results reflect the underlying strength of our diversified portfolio, the resilience embedded in our business models, and the unwavering commitment of our teams – giving us confidence not just in navigating the present, but in building for tomorrow.

Resilience in Performance Across Businesses

Chemicals Business

Our Chemicals Business remained the cornerstone of our growth, delivering a 16% increase in revenue to ₹ 7,779 crore during the year.

Within this, the Fluorochemicals Business delivered a record performance, driven by strong global demand, improved realisations, and optimal utilisation across plants. Even as certain regions, such as the Middle East, experienced disruptions, we demonstrated agility by developing alternate markets and sustaining volumes.

A key focus area has been our investment in next-generation refrigerant gases, where we have announced a capital outlay of approximately ₹2,300 crore over the next two years. This project, along with backward integration into critical intermediates, will strengthen our global competitiveness and position us strongly for the transition to environmentally sustainable solutions.

In many ways, this journey mirrors the broader vision of an ‘Aatmanirbhar Bharat’ – where Indian companies are not just participants, but leaders in high-technology, future-facing sectors, driving true self-reliance.

Our Chemicals Business remained the cornerstone of our growth, delivering a 16% increase in revenue to ₹7,779 crore during the year.

The Specialty Chemicals Business operated in a challenging environment, with stress in the agrochemical value chain and significant pricing pressures from global competitors. Despite these headwinds, we maintained our focus on cost discipline, operational efficiency, and market share protection.

Importantly, our pipeline of intermediates and active ingredients remains robust, with increasing participation in higher-value pharmaceutical segments. This positions us well to offset commoditisation in certain products and drive sustainable growth over the medium term.

Our Chemicals Technology Group (CTG) is a critical enabler of this transformation. As the engine of innovation within SRF, CTG continues to build deep capabilities in complex chemistries, accelerate the development and scale-up of new molecules, and strengthen our intellectual property portfolio. During the year, CTG worked on over 50 molecules, successfully advancing several to commercialisation, reinforcing its role in moving SRF up the value chain and shaping our future growth trajectory.

Performance Films & Foil Business

The Performance Films & Foil Business reported a revenue of ₹5,764 crore, registering a growth of 4% over the previous year.

The business operated in a challenging environment marked by supply chain volatility and pricing pressures. However, through disciplined execution and operational efficiencies, we were able to sustain performance and capture selective opportunities arising from market dislocations.

Encouragingly, the fourth quarter saw early signs of recovery across geographies, particularly in BOPET margins and export markets.

At the same time, the business continues to be guided by the philosophy of being “Easy To Do Business With”, placing the customer at the heart of every decision. This customer-centric approach – focussed on responsiveness, reliability, and solution orientation – has strengthened long-term partnerships and enhanced our ability to navigate evolving market expectations.

Our continued focus on Value-Added Products (VAPs) and sustainable solutions has further reinforced this approach, enabling us to deliver differentiated offerings aligned with customer needs while reducing exposure to commodity cycles.

Strategic projects such as the BOPP–BOPE line and the new BOPA line are progressing well and will significantly enhance our capabilities and product portfolio.

A key milestone during the year has been the successful start-up of our capacitor-grade BOPP film project, marking our entry into a high-value segment. This project is expected to be capitalised soon and represents an important step in strengthening our portfolio of advanced, specialised products.

The Aluminium Foil segment continued to scale up, supported by a higher export focus and progress towards approvals in high-end applications, further strengthening the long-term outlook of the business.

Technical Textiles Business

The Technical Textiles Business reported revenues of ₹ 1,877 crore during FY26.

The business faced challenges from competitive pricing pressures, particularly due to imports, and fluctuating demand in certain segments. Despite this, it demonstrated resilience, supported by stable performance in the Nylon Tyre Cord Fabric (NTCF) and growth in the Polyester Tyre Cord Fabric (PTCF) segment.

We continue to focus on enhancing our value-added offerings, alongside operational improvements to enhance competitiveness and margins. In addition, renewed traction in key segments is expected to support future growth.

Other Businesses

Our Coated and Laminated Fabrics businesses reported revenues of ₹ 366 crore during the year.

Despite demand softness in certain applications and increased competitive intensity, the businesses maintained their market leadership in the domestic segment. A continued focus on value-added products helped offset some of the near-term challenges and sustain overall performance.

Building for Tomorrow: Investing in Capability and Growth

While resilience defined our response to current challenges, our focus remains firmly on building for the future.

We continued to invest in capacity expansion, advanced technologies, and R&D, aligned with evolving market needs and long-term megatrends.

Through the SRF Foundation, we continue to play our part in building a more inclusive and empowered society.

Our planned capital expenditure of approximately ₹2,500 crore for the coming year reflects our confidence in future growth opportunities.

Our R&D capabilities remain central to our strategy, enabling us to develop complex chemistries, improve process efficiencies, and bring differentiated products to market.

At the same time, we have strengthened our supply chain resilience, operational flexibility, and global partnerships, enabling us to navigate an increasingly uncertain environment with agility and confidence.

Sustainability and Social Responsibility

Sustainability continues to be an integral part of our business strategy. Across our operations, we are advancing initiatives focussed on resource efficiency, circular economy practices, and responsible manufacturing.

Through the SRF Foundation, we continue to play our part in building a more inclusive and empowered society. During the year, our initiatives reached over 1,30,000 students across 327 government schools, combining school transformation, digital inclusion, and teacher capacity building to drive meaningful learning outcomes.

Beyond access, our focus is on impact-strengthening foundational learning, training over 3,000 educators, and creating centres of excellence such as the upcoming ‘The SRF School’ at Bharuch.

Alongside education, our skilling initiatives are equipping youth with employable capabilities, reinforcing our belief that empowering communities today is essential to realising the vision of a more inclusive, self-reliant Viksit Bharat by 2047.

Looking Ahead

As we look to the future, while the macroeconomic environment remains dynamic, we are confident in our preparedness.

SRF today is stronger, more diversified, and better equipped to navigate volatility. Our strategic investments, innovation-led approach, and disciplined execution will enable us to deliver sustained growth and create long-term value for all stakeholders.

Resilience has been the foundation of our journey so far. With a clear vision and strong capabilities, we are firmly on track towards building a stronger tomorrow.

Acknowledgements

I would like to express my sincere gratitude to our employees for their dedication and resilience. I also thank our customers, partners, and shareholders for their continued trust and support.

Together, we remain Resilient. Building for Tomorrow.

Warm regards,