Management
Discussion & Analysis
The following section presents Management’s overview of the Company’s operating and financial performance during FY26, together with an outlook for future business performance.
Businesses
SRF Limited is a chemicals-based, multi-business conglomerate engaged in the manufacture of industrial and specialty intermediates. The Company is globally recognised for its strong R&D capabilities, particularly in the niche domain of Chemicals. SRF is a market leader across most of its business segments in India and select international markets.
The Company operates 16 manufacturing facilities – 13 in India and one each in Thailand, South Africa, and Hungary – and has further strengthened its global presence with an office in Dubai. SRF has commercial interests in over 90 countries worldwide. Its operations are organised into four business verticals: Chemicals Business (CB), Performance Films & Foil Business (PFB), Technical Textiles Business (TTB), and Other Businesses.
Chemicals Business
The Chemicals Business comprises two product segments: Fluorochemicals and Specialty Chemicals.
Fluorochemicals (FCB)
Refrigerants & Propellants, Industrial Chemicals & Fluoropolymers
FY26 was a year of exceptional growth for the Fluorochemicals business, supported by firm pricing, improved execution, and stable operations, amid a challenging global environment. The year began with moderate domestic demand impacted by unseasonal weather patterns. In the US, continued destocking of HFCs and the transition towards lower-GWP alternatives, coupled with tariff-related uncertainties, weighed on demand. In response, the business proactively expanded its geographic footprint to mitigate risks. Encouragingly, Middle East operations scaled up well during the year. The Propellant segment increased market share across domestic and international markets and continues to expand. Overall, the Refrigerants business delivered strong performance in both domestic and international markets.
The Industrial Chemicals segment witnessed subdued demand from the agrochemical industry and stable demand from the pharmaceutical industry. Owing to low domestic demand and supply chain disruptions at customer ends, margins remained under pressure. However, the business outperformed the industry, supported by cost reduction initiatives, stable operations, and improved performance in niche products.
The Industrial Chemicals segment witnessed subdued demand from the agrochemical industry and stable demand from the pharmaceutical industry. Owing to low domestic demand and supply chain disruptions at customer ends, margins remained under pressure. However, the business outperformed the industry, supported by cost reduction initiatives, stable operations, and improved performance in niche products.
In the Fluoropolymers segment, the existing PTFE product recorded all-round improvement in costs, sales, and customer approvals. The business began receiving key account approvals globally, with performance improving over the previous year. The speciality polymers project remains on track and is expected to be commissioned in early FY27. The partnership with Chemours for high-end polymer projects progressed well, with significant milestones achieved and completion expected as planned.
During FY26, both manufacturing sites reported safe and stable operations. With several operational excellence initiatives in place, most plants achieved their highest-ever production levels during the year. The business will continue to focus on optimising raw material sourcing, strengthening supply chains, enhancing cost efficiency, and building capabilities in new product portfolios, with sustainability as a key priority. The new site at Odisha was successfully completed during the year to support future expansion. Overall, the business delivered a robust performance in FY26.
