Shares of SRF Limited remained in focus during trading on Wednesday. The stock fell nearly 7% and touched ₹2,704.
This decline came a day after the company announced its December quarter results, which were largely better than market expectations.
SRF reported a 59.7% year-on-year jump in net profit to ₹432.7 crore, compared to ₹271 crore in the same quarter last year.
The company’s revenue rose 6.3% to ₹3,712.5 crore. EBITDA increased 26% to ₹780 crore, while the operating margin improved to 21%. All key financial numbers were stronger than what analysts had estimated.
Over the long term, SRF shares have delivered exceptional returns. The stock has climbed from ₹2 on January 1, 1999, to the current level, marking a massive gain of 131,162%.
What the Company Management Said
The company said that the implementation of new labour laws (Labour Code) had an additional financial impact of ₹73.24 crore, which affected profits. Even with this impact, SRF’s overall performance remained better than expected.
Management noted that while some business segments are showing improvement, cost pressures and market uncertainty continue to be concerns. Due to these challenges, investors reacted cautiously to the results.
Specialty Chemicals Business Faces Pressure
The specialty chemicals segment performed slightly weaker during the quarter. The company explained that aggressive pricing by Chinese manufacturers has increased competition and put pressure on margins.
In addition, some major customers have delayed their purchases, leading to lower-than-expected demand. According to the company, volumes are slowly improving, but a full recovery may take more time.
Dividend Announcement and New CFO Appointment
SRF’s board has announced a 50% interim dividend, which means ₹5 per share for shareholders. The dividend will be paid to investors whose names appear on the company’s records as of January 27, 2026,
and the payment will be made by February 17, 2026. This is the fifth dividend declared by the company.
The company also announced the appointment of Sameer Kashyap as its new President and Chief Financial Officer (CFO).
