Indian industrial giant SRF Ltd reported a 30% drop in net profit for the first quarter of FY25, registering ₹252 crore, marking its sixth consecutive quarter of decline. The sharp fall comes as weak global demand continues to impact the company’s core chemicals and polymers business.

Earnings Breakdown

The chemicals division, a key revenue driver comprising specialty chemicals, fluorochemicals, and agrochemicals, accounted for nearly 50% of SRF’s quarterly earnings. However, persistent headwinds in the global market, coupled with high inventory levels and prolonged destocking trends, weighed heavily on volumes and margins.

Total expenses surged by nearly 10%, primarily due to escalating input costs. Despite these challenges, the company highlighted ongoing efforts to optimize operational efficiencies and mitigate rising costs.

Industry Challenges

Analysts attribute SRF’s performance to broader struggles within the chemicals sector, where rising inventory and reduced demand have created a ripple effect across markets. The slowdown in global industrial activity, especially in key regions, continues to exert pressure on the company’s profit margins.

Way Forward

While SRF navigates these challenges, the company remains committed to strengthening its specialty chemicals portfolio and exploring opportunities in emerging markets. Its diversified business model and focus on innovation are seen as key pillars for future growth.

SRF’s performance highlights the pressing challenges in the global chemicals industry but also underlines the resilience required to thrive in a volatile market.