Shares of SRF Limited were in focus during Wednesday’s trading session, as the stock fell nearly 7% to around ₹2,704. This decline came a day after the company announced its December quarter results, which were strong overall.
During the quarter, net profit rose 59.7% year-on-year to ₹432.7 crore, compared to ₹271 crore in the same period last year.
Revenue increased by 6.3% to ₹3,712.5 crore, while EBITDA grew 26% to ₹780 crore, resulting in an operating margin of 21%. All these numbers were better than market expectations.
Over the long term, SRF shares have delivered exceptional returns, rising from ₹2 on January 1, 1999, to the current level, a massive gain of 131,162%.
What the Company Management Said
Despite the strong quarterly performance, the company highlighted some concerns. SRF stated that the implementation of new labour laws (Labour Code) had an additional impact of ₹73.24 crore, which affected profits.
Management noted that while certain business segments are showing signs of improvement, cost pressures and market uncertainty continue. Due to these factors, investors reacted cautiously to the results.
Performance of Specialty Chemicals Business
The specialty chemicals segment underperformed slightly during the quarter. According to the company, aggressive pricing by Chinese manufacturers has intensified competition, putting pressure on this business.
In addition, some large customers delayed their purchases, leading to lower-than-expected demand. The company said that volumes are slowly improving, but a full recovery may take more time.
Dividend Announcement and Key Appointment
SRF’s board has announced a 50% interim dividend, which amounts to ₹5 per share. The dividend will be paid to shareholders whose names appear on the records as of January 27, 2026,
and the payment is expected by February 17, 2026. This marks the company’s fifth dividend.
The company also announced the appointment of Sameer Kashyap as its new President and Chief Financial Officer (CFO).
