SRF approves ₹600 crore battery foil plant in Madhya Pradesh

Guidance
Chemicals

Blacklitt Research21 October 20263 min read

SRF (NSE: SRF) approved a ₹600 crore project to make aluminium foil for batteries through its wholly owned subsidiary SRF Altech, and it said in a filing on 21 Oct 2026 that the first phase adds 12,000 tonnes a year of capacity. At the 21 Oct 2026 close of ₹2,305 a share, its market value was ₹68,325 crore.

Key highlights

Project cost: about ₹600 crore, in two phases of ₹300 crore each
Phase I capacity: 12,000 tonnes a year, by 30 Sep 2028
Phase II completion: by 30 Sep 2030
Latest quarter (Q2 FY27, ended 30 Sep 2026): consolidated revenue ₹4,929 crore

The project in numbers

Item	Detail
Investing unit	SRF Altech Limited, a wholly owned subsidiary
Location	Existing site of the subsidiary at Jetapur, Madhya Pradesh
Project cost	About ₹600 crore
Phase I	₹300 crore; 12,000 tonnes a year by 30 Sep 2028
Phase II	₹300 crore; completion by 30 Sep 2030
Existing capacity	Not applicable
Financing	Mix of debt and internal accruals

Why the company is building it

SRF said the plant is meant "to build a portfolio of future-ready value-added products", such as battery foil for energy storage and electric vehicle (EV) sectors in India. Battery foil here means thin aluminium sheet, which serves as a current collector inside lithium-ion battery electrodes.

The plant will be built at the existing site of SRF Altech at Jetapur, in Madhya Pradesh. The filing reports no existing capacity or utilisation for it, so it is a new product line rather than an expansion of a reported line.

Phasing, funding and the results day

Phase I, with 12,000 tonnes a year of capacity, is due by 30 Sep 2028. Phase II, with the same ₹300 crore cost, is due by 30 Sep 2030. The filing says the project will be funded through a mix of debt and internal accruals, meaning profits the company keeps rather than pays out.

The board approval came on the same day SRF filed its results for the quarter and half year ended 30 Sep 2026. For Q2 FY27, consolidated net profit was ₹509 crore on revenue of ₹4,929 crore.

What it means for shareholders

The board has approved ₹600 crore of spending on a new battery foil line, part of it funded by borrowing. The filing does not give phase II capacity, the split between debt and internal accruals, or the expected returns, so the payoff is not known from the filing. The next dated steps are phase I by 30 Sep 2028 and phase II by 30 Sep 2030.

Reference: Original filing (PDF)

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