Financial Capital

Growth and Expansion

We are focussed on driving growth and expansion across our business while maintaining financial discipline. We carefully allocate capital to sustain growth projects and support capacity expansion across key segments. At the same time, we preserve sufficient liquidity to effectively navigate changing economic conditions and market uncertainties. This balanced approach enables us to pursue strategic opportunities while ensuring resilience and long-term value creation.

During the year, we expanded our Chemicals Business footprint by signing a Memorandum of Understanding (MoU) for the acquisition of 300 acres of leasehold land in Gopalpur, in the state of Odisha. We have committed an investment of ₹ ~2,300 crore for this site, which will leverage our proprietary, non-infringing technology. The investment has been committed for a 20,000 tonnes per annum Hydrofluoroolefins (HFOs) production unit, a new HF plant with a capacity of 30,000 tonnes per annum, and the production of value-added HF derivatives—strengthening our manufacturing derivatives – and broadening our product portfolio.

During the year, an amount of more than ₹ 680 crore was capitalised on account of various capex projects across all our business segments, with significant capital infusion on projects such as new agro intermediates production in Dahej, installation of CPP film line in Indore, etc. These capex investments position us to scale operations and capitalise on emerging growth opportunities. We also executed targeted cost-optimisation initiatives to enhance operational efficiency, leading to improved resource utilisation, stronger cost discipline, and a positive contribution to overall financial performance. These efforts, combined with disciplined capital allocation, have reinforced our operational resilience and strengthened our ability to deliver sustainable value over the long term.

Our Performance

In FY26, we delivered a strong financial performance, with total turnover reaching ₹ 15,787 crore, reflecting a growth of 7.4% over the previous year. Profitability remained strong, driven by growth in business, with Profit After Tax (PAT) increasing by ~47% to ₹ 1,835 crore. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) also witnessed a growth of 24.7%, rising to ₹ 3,705 crore.

Reflecting this performance, earnings per share for the year stood at ~₹ 62, highlighting the resilience of our returns and our continued focus on creating sustainable long-term value for our shareholders. During the year, the Company also declared two interim dividends of ₹ 4 and ₹ 5 per equity share, respectively.

Business-wise Performance

We delivered a steady performance across our businesses in FY26, supported by robust growth in the Chemicals and Performance Films & Foil segments, reflecting our ability to respond effectively to evolving market dynamics. In FY26, Operational EBIT for the Chemical Business and Performance Films & Foil Business increased by approximately 36% and 39%, respectively, compared to the previous year. This performance underscores the strength of our long-term strategy and reinforces our commitment to delivering sustainable value over the years.

CB PFB TTB Other Businesses (CF and LF)

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Credible, Affirmed, and Strong Ratings

We continue to maintain a resilient credit profile, underpinned by strong fundamentals and affirmed by leading credit rating agencies. CRISIL has assigned ratings of CRISIL AA+ / Stable / CRISIL A1+ for our bank loan facilities, commercial paper and Fund Based and Non-Fund Based Working Capital Limits. Likewise, India Ratings and Research has rated our fund-based and non-fund-based working capital limits at IND AA+/Stable and IND A1+, our term loans at IND AA+/Stable, and our commercial paper at IND A1+/Stable.

These evaluations highlight the inherent strength of our business, reflected in our leadership positions across key markets, a well-diversified revenue mix, robust operational performance, and a strong financial risk profile, supported by disciplined financial management and a continued focus on balance sheet strength. Together, they reinforce confidence in our ability to sustain long-term growth and financial resilience.

Our Tax Strategy and Governance

We are committed to maintaining a transparent, compliant, and responsible tax strategy aligned with all applicable regulations and best governance practices. In line with our values, our approach emphasises integrity, risk management, and constructive engagement with tax authorities to support sustainable and ethical business growth. Further, our approach is guided by a comprehensive group-wide Tax Policy that defines our standards for tax governance. It reflects our commitment to ethical conduct and compliance as fundamental pillars of sustainable value creation. The policy outlines clear guidelines for compliance and tax planning, along with principles for transparency and accountability.

We ensure full compliance with tax laws across all the jurisdictions in which we operate, while responsibly availing eligible allowances, incentives, and exemptions. We adopt a conservative approach to tax matters, ensuring adherence to applicable regulations and maintaining prudence in all our tax positions. We adopt business structures that are driven by sound commercial considerations, aligned with our operational activities, and supported by genuine economic substance.

We actively evaluate and appropriately adopt relevant tax rulings, judgements, agreements, concessions, and reliefs provided by governments. In addition, we ensure that all transfer pricing arrangements for related party transactions are determined in accordance with the widely accepted arm’s-length principle, reflecting fairness, transparency, and regulatory compliance. The policy is applicable to both Direct & Indirect Tax for the Company and its subsidiaries and approved by the Board of Directors. The policy is available at https://www.srf.com/storage/files/policies/Tax-Policy.pdf

Our Contribution to Exchequer in FY26:

• We paid ~₹ 506 crore toward income taxes (net of refunds) and ~₹ 138 crore [Cash payment of GST during FY26 other than payment made as pre deposit for filing appeal] toward GST (cash) payments during FY26 in India.