SRF Q2 FY27: net profit up 31% to ₹509 crore, income up 34%
Earnings
Chemicals
Blacklitt Research6 min read
Illustrative image via Wikimedia Commons
SRF (NSE: SRF) reported consolidated net profit of ₹509 crore for the quarter ended 30 Sep 2026, up 31% from ₹388 crore a year earlier. Consolidated total income was ₹4,929 crore, up 34%. Standalone net profit was ₹438 crore, up 21%, on total income of ₹3,836 crore, up 33%.
Key highlights
Consolidated
Including its subsidiaries
Total income: ₹4,929.14 crore, up 34.5% from ₹3,665.90 crore in Q2 FY26.
Net profit: ₹509.12 crore, up 31.2% from ₹388.18 crore; down 32.9% from ₹758.87 crore in Q1 FY27.
EPS: ₹17.18, against ₹13.10 in Q2 FY26, up 31.1%.
Tax as share of profit before tax: 24.13%, against 24.92% a year earlier.
Standalone
The company on its own, without its subsidiaries
Total income: ₹3,836.39 crore, up 33.1% from ₹2,883.01 crore in Q2 FY26.
Net profit: ₹438.48 crore, up 20.9% from ₹362.66 crore; down 22.6% from ₹566.30 crore in Q1 FY27.
EPS: ₹14.79, against ₹12.23 in Q2 FY26, up 20.9%.
Tax as share of profit before tax: 25.46%, against 24.85% a year earlier.
Summary
Consolidated ₹ crore
Particulars
Q2 FY27
Q2 FY26
YoY
Q1 FY27
QoQ
4,929.14
3,665.90
+34.5%
5,067.17
-2.7%
Revenue from operations
4,904.20
3,640.19
+34.7%
5,033.26
-2.6%
Other income
24.94
25.71
-3.0%
33.91
-26.5%
509.12
388.18
+31.2%
758.87
-32.9%
Finance costs
70.94
70.68
+0.4%
68.62
+3.4%
Depreciation
228.84
212.13
+7.9%
222.86
+2.7%
Tax expense
161.92
128.87
+25.6%
220.28
-26.5%
Net profit margin
10.33%
10.59%
-0.26 pp
14.98%
-4.65 pp
Tax as share of profit before tax
24.13%
24.92%
-0.79 pp
22.50%
+1.63 pp
EPS (₹)
17.18
13.10
+31.1%
25.60
-32.9%
Figures are in ₹ crore except EPS; YoY compares with Q2 FY26 and QoQ with Q1 FY27.
Profit grew more slowly than income against a year earlier. Consolidated net profit rose 31.2% while total income rose 34.5%. Cost of materials consumed, the largest expense, rose to ₹2,623.04 crore from ₹1,925.09 crore, and exchange losses were ₹63.13 crore against ₹30.63 crore. The filing does not explain the drivers of either change.
The fall from the June quarter was steeper than the fall in income. Total income eased 2.7% from ₹5,067.17 crore in Q1 FY27, but net profit fell 32.9% and profit before tax fell 31.5% from ₹979.15 crore. Tax expense was ₹161.92 crore, against ₹220.28 crore in the June quarter. The filing does not explain the fall in profit from the June quarter.
Borrowings rose and working capital absorbed cash in the half year. Consolidated borrowings were ₹5,205.31 crore at 30 Sep 2026, against ₹5,004.33 crore at 31 Mar 2026. Long-term borrowings rose to ₹2,253.95 crore from ₹1,953.30 crore, while current borrowings eased to ₹2,951.36 crore from ₹3,051.03 crore. The company had ₹700 crore of commercial paper outstanding at 30 Sep 2026 and repaid all paper that fell due in the quarter. Inventories rose to ₹3,378.69 crore from ₹2,788.64 crore and trade receivables to ₹3,160.53 crore from ₹2,561.60 crore. The cash flow statement shows ₹606.03 crore absorbed by trade receivables and ₹584.24 crore by inventories.
Operating cash flow fell and capital spending rose. Net cash from operations for the half year was ₹793.49 crore, against ₹1,060.96 crore a year earlier. Payments for property, plant, equipment, capital work-in-progress and intangibles were ₹973.89 crore, against ₹879.38 crore. Capital work-in-progress stood at ₹2,122.19 crore, from ₹1,889.41 crore at 31 Mar 2026. Cash and cash equivalents were ₹397.92 crore, down from ₹590.49 crore at 31 Mar 2026.
No exceptional item fell in the quarter, and the review is unmodified. The quarter and the comparison quarters carry no exceptional item. A ₹84.95 crore one-time charge for the New Labour Codes was booked in the year ended 31 Mar 2026, as was a ₹99.12 crore tax write-back, both outside these comparisons. The limited review by BSR & Co. LLP does not modify its conclusion. Three overseas subsidiaries were reviewed by other auditors, with total assets of ₹4,590.56 crore before consolidation adjustments; management says four further unreviewed subsidiaries are not material. The filing reports no change of auditor and no dividend declared with these results. Dividends paid in the half year were ₹147.85 crore, against ₹118.35 crore.
Standalone ₹ crore
Particulars
Q2 FY27
Q2 FY26
YoY
Q1 FY27
QoQ
3,836.39
2,883.01
+33.1%
3,841.25
-0.1%
Revenue from operations
3,808.61
2,852.96
+33.5%
3,801.97
+0.2%
Other income
27.78
30.05
-7.6%
39.28
-29.3%
438.48
362.66
+20.9%
566.30
-22.6%
Finance costs
50.74
52.37
-3.1%
50.18
+1.1%
Depreciation
183.60
170.11
+7.9%
178.21
+3.0%
Tax expense
149.73
119.90
+24.9%
193.29
-22.5%
Net profit margin
11.43%
12.58%
-1.15 pp
14.74%
-3.31 pp
Tax as share of profit before tax
25.46%
24.85%
+0.61 pp
25.45%
+0.01 pp
EPS (₹)
14.79
12.23
+20.9%
19.10
-22.6%
Figures are in ₹ crore except EPS; YoY compares with Q2 FY26 and QoQ with Q1 FY27.
Standalone profit grew more slowly than income. Standalone net profit rose 20.9% to ₹438.48 crore while total income rose 33.1%. Tax expense rose 24.9% to ₹149.73 crore, and tax took 25.46% of pre-tax profit against 24.85% a year earlier.
Income held steady from the June quarter, but profit fell. Standalone total income was ₹3,836.39 crore against ₹3,841.25 crore in Q1 FY27, and other income fell to ₹27.78 crore from ₹39.28 crore. Net profit fell 22.6% from ₹566.30 crore. The filing does not explain the change.
Operating cash flow fell and cash ended lower. Standalone net cash from operations for the half year was ₹402.07 crore, against ₹901.64 crore. Cash and cash equivalents fell to ₹190.11 crore from ₹497.11 crore at 31 Mar 2026, and borrowings rose to ₹3,569.49 crore from ₹3,312.80 crore. Trade receivables stood at ₹2,563.88 crore, against ₹1,947.72 crore in March, and inventories at ₹2,540.61 crore, against ₹2,124.41 crore.
The standalone review is also unmodified. BSR & Co. LLP reports that nothing has come to its attention that suggests a material error or a disclosure gap in the statement. The standalone results carry the same ₹84.22 crore labour-code exceptional item in the year ended 31 Mar 2026 and the same ₹99.12 crore tax write-back, both outside these comparison periods.
What the results mean for shareholders
Consolidated EPS was ₹17.18 for the quarter, up 31.1% from ₹13.10 a year earlier and down from ₹25.60 in the June quarter. Standalone EPS was ₹14.79, up 20.9% from ₹12.23. The year-on-year gain in per-share earnings matches the gain in net profit, because the share count did not change in the comparison.
The filing does not show what drove the fall from the June quarter, and it contains no guidance. A separate notice on capacity addition was filed on the same day, but its contents are not in the source text used for this article.
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