SRF Posts Rs 509 Crore Q2 Profit on Chemical Recovery, Commits Rs 600 Crore to EV Battery Foil Expansion

• SRF Q2 FY27 net profit rose 31% year-on-year to Rs 509 crore, driven by a recovery in the specialty chemicals and fluorochemicals segments
• The board approved a Rs 600 crore capital investment for a new battery foil manufacturing plant, targeting growing EV supply-chain demand
• Revenue growth outpaced estimates, with EBITDA margins expanding on better chemical product mix and reduced raw material costs

SRF's 31% profit surge reflects the broader recovery in India's specialty chemicals sector after two years of margin compression from oversupply in China and weak European demand. The fluorochemicals segment — which supplies refrigerants and agrochemical intermediates — has been a key driver, benefiting from anti-dumping measures and a pickup in domestic HVAC and refrigeration demand ahead of a warmer El Niño cycle.

The Rs 600 crore battery foil investment is strategically significant for a longer-duration thesis. SRF is positioning itself to capture EV battery value chain demand as Indian OEMs accelerate their localization targets. Battery-grade aluminium foil is a critical but undersupplied component in lithium-ion cells, and domestic production capacity remains far below projected demand through FY30.

Investors will watch whether SRF can sustain margin expansion into Q3 FY27 as raw material tailwinds moderate. The key risk is pricing pressure in the fluorochemical market if Chinese producers re-enter with competitive exports post-monsoon. The battery foil plant timeline and its initial offtake agreements will be the next disclosure catalysts to track.

Synthesised from 1 source: Free Press Journal