SRF Share Price: Should You Buy, Sell, or Hold After Announcing Q3 Results?

Synopsis: SRF Ltd is in focus after its Q3 results, with revenue rising 6% YoY to ₹3,713 crore and net profit surging 60% YoY to ₹433 crore in Q3 FY26 along with brokerage views on the results and operations.

The shares of the Chemical company specialising in fluorochemicals, speciality chemicals, performance films, and technical textiles, have been in the spotlight following their Q3 results and brokerage outlook check it out.

With a market capitalization of Rs. 81,977.77 crores on Wednesday, the shares of SRF Ltd declined upto 4.9 percent, reaching a low of Rs. 2732.05 compared to its previous close of Rs. 2873.15.

What Happened

SRF Ltd is engaged in fluorochemicals, speciality chemicals, performance films, and technical textiles, staying in the spotlight following its Q3 results as follows. Its Revenue from operations rose by 6 percent YoY from Rs. 3,491 Crores in Q3FY25 to Rs. 3,713 Crores in Q3FY26, and it rose by 2 percent QoQ from Rs. 3,640  Crores in Q2FY26 to Rs. 3,713 Crores in Q3FY26.

Its Net Profit YoY rose by 60 percent from Rs. 271 Crores in Q3FY25 to Rs. 433 Crores in Q3FY26, and on a QoQ basis, it rose by 12 percent from Rs. 388 Crores in Q2FY26 to Rs. 433 Crores in Q3FY26. The earnings per share (EPS) for the quarterly period stood at Rs. 14.60, compared to Rs. 9.14 in the previous year’s quarter.

Other Updates 

The Board of Directors has declared an interim dividend of 50% (Rs. 5 per share) on the paid-up equity capital. The dividend will be paid to shareholders and beneficial owners as on the record date, January 27, 2026, on or before February 17, 2026.

Along with it, the board has also approved a Rs. 180 Crore project to set up a new Pharma Intermediate Plant (PIP-2) at Dahej, Gujarat, aimed at precursor processes for pharma production. The plant, to be completed by September 30, 2026, will be funded through a mix of debt and internal accruals. The move is intended to tap emerging opportunities in the pharmaceutical sector.

Brokerage Views on Result

Morgan Stanley has maintained an Underweight rating on SRF with a target price of Rs 2,177. The brokerage believes the stock is trading at above mid-cycle margins, leaving limited room for upside.

It also highlighted that significant domestic capacity additions in R32 could pose downside risks to pricing and margins. Additionally, FY26 guidance implies a strong Q4 performance requirement, which Morgan Stanley sees as a potential execution risk.

The brokerage has maintained a Sell rating on the stock and cut its target price to Rs 2,575 from Rs 2,800. Q3 performance underwhelmed due to continued pressure in the agro speciality chemicals segment, and  Packaging films and technical textiles also disappointed during the quarter. 

The outlook remains weak, weighed down by low-cost Chinese competition and procurement deferrals. Additionally, R32 capacity additions expected in 2026 pose a downside risk to consensus estimates.

SRF Limited is a diversified Indian chemicals conglomerate, originally Shri Ram Fibres, that grew from technical textiles into one of the global leaders in industrial and specialty chemicals, packaging films, and technical textiles.

It serves markets like pharma, agro, automotive, and packaging, with operations in India, Thailand, South Africa, and Hungary, known for innovation and quality, and holding a strong global presence with customers in many countries. 

The company shows decent capital efficiency, with a ROCE of 12.3% and a ROE of 10.4%, indicating reasonable returns on both total capital employed and shareholders’ equity. A debt-to-equity ratio of 0.35 suggests a conservative leverage position, providing financial stability while limiting risk from excessive borrowing.

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