SRF Limited (NSE: SRF) Q1 2026 Earnings Call dated Jul. 24, 2025
Corporate Participants:
Unidentified Speaker
Nitika Dhawan — Head of Corporate Communications
Nitika Dhawan — Head of Corporate Communications
Rahul Jain — President and Chief Financial Officer
Rahul Jain — President and Chief Financial Officer
Analysts:
Unidentified Participant
Nitesh Dhoot — Analyst
Arjun Khanna — Analyst
Sumant Kumar — Analyst
Jason Soans — Analyst
Sanjesh Jain — Analyst
Naushad Chowdhary — Analyst
Ankur Periwal — Analyst
Abhijit Akella — Analyst
Vivek Rajamani — Analyst
Krishan Parwani — Analyst
Meet Vora — Analyst
Nitin Agarwal — Analyst
Rohit Nagraj — Analyst
Madhav Marda — Analyst
Surya Narayan Patra — Analyst
Amit Agicha — Analyst
Kumar Saumya — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to SRF Limited Q1 and FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Kumar Soumya from Ambit Capital. Thank you. And over to you sir.
Kumar Saumya — Analyst
Thank you. Ramshal. Good afternoon everyone and thank you for joining us today. We at Ambit Capital are pleased to host SRF Limited’s Q1FY26 results conference call. We have with us today Mr. Rahul Jain, President and CFO of SRF Limited. I would now like to invite Mrs. Nikita Dhawan, Head of Corporate Communications at SRF to initiate the proceedings for the result conference call. Over to you, ma’. Am. Thank you.
Nitika Dhawan — Head of Corporate Communications
Good afternoon everyone and thank you for joining us on SRF Limited’s Quarter 1 Financial Year 26 results conference call. We will begin this call with brief opening remarks from our President and CFO Mr. Rahul Jain. Following which we will open the forum for an interactive question and answer session. Before we begin this call, I would like to point out that some statements made in this call may be forward looking and a disclaimer to this effect has been included in the earnings presentation shared with you earlier. I would now like to invite Mr. Jain to make his opening remarks.
Rahul Jain — President and Chief Financial Officer
Good afternoon everyone. I extend a warm welcome to you all and thank you for joining us today for SRF’s Q1 FY26 earnings conference call. I trust all of you have had the opportunity to go through our results and presentation shared with you earlier. I will begin the call by briefly taking you through the key financial and operational highlights for the period under review following which we will open the forum for a Q and A session. We started the year on a positive note, delivering strong performance across our key business segments despite prevailing global uncertainties. With expectations of an improving external environment, we remain cautiously optimistic about achieving stronger performance in FY26 as a whole.
In Q1 FY26 our gross operating revenue stood at 3,819 crore and EBIT was up 43% recorded at 694 crore reflecting an 18.2% margin. Profit after tax grew 71% YoY to Rs. 432 crore during the quarter. Board also approved an interim dividend of Rupees 4 per share with a total outflow of approximately Rupees 119 crore. Our chemicals business reported revenues of 1839 crore registering a 24% year on year growth. The operating profit of chemicals business increased 64% from 306 crore in CPLY to 503 crore in Q1FY26 the specialty chemical business segment delivered strong revenue and margin performance driven by a healthy demand for newly launched products.
We are now witnessing a gradual recovery in the agrochemicals market post inventory rationalization that happened during FY24 and FY25. While there are still some overhang of the inventory cycle, we believe majority of the same is now behind us albeit some pricing pressures remain and we continue to witness the same in some of our products during the quarter. Key milestones included a launch of New Pharma Intermediate and registration of an AI product, both of which are expected to scale up in FY26. In an environment of evolving market dynamics, Chinese competition and uncertain tariff position, operational efficiency remained a key focus for the segment supported by cost optimization, process improvements, automations and better asset utilization.
Demand for agrochemical intermediates remained favorable with strategic pricing and solid export performance contributed to overall growth. To support future demand, the board approved a 250 crore investment for a new agrochemical intermediate facility at the hedge, reinforcing SRF’s commitment to long term sustainable growth. The fluorochemical business delivered good growth compared to corresponding period last year while the overall domestic market remained weak. With RAC production being lower, we were able to find countermeasures in the export market and grow our HFC volumes when compared to corresponding period last year. A key highlight in the segment was SRS commercial sale of our 4670 in Q1 FY26 developed and patented in house by SRS R and D team.
R467A is a low GWP non toxic refrigerant gas designed for retrofitting Legacy R22 stationary air conditioning systems. It has also earned Global ASHRAE certification making SRF the first Indian company to achieve this milestone. SRF maintained its leadership in both room AC and mobile AC segments in the domestic market. The recently operational HF3 plant is helping increase HFC production and PTFE segment is preparing to expand sales for its Free flow and Fine cut variants in FY26. The chloromethane segment also delivered stable results with pricing largely remaining rangebound. A lot of questions around quota regime for HFCs have been received since our results announcement and in the past as well.
We will plan a separate call to explain deeper nuances around the same. However, I would like to clarify that the quota policy is extremely clear and we believe that someone putting up large capacities has incorrect understanding of its implications. SRF’s R&D capabilities remain a core strength supporting innovation and competitiveness across fluorochemicals and specialty chemicals. With over 400 skilled professionals, our R and D team is engaged in developing complex chemistries and advanced products. SRF has built a strong intellectual property portfolio with 153 granted patents and 494 process patents filed. Moving forward, R and D will remain central to advancing process development, scale up and commercialization across agrochemicals, pharmaceuticals and next gen refrigerant gases.
The performance films and foil business recorded 6% YoY growth revenue growth in Q1FY26 reaching rupees14.18 crore with operating profit increasing 62% over CPLY to reach 140 crore in Q1FY26 on account of record production, improved efficiency and higher capacity utilization. Overall margins volumes of VABP were higher and margins improved on the back of better overall realization, higher VAP sales and disciplined cost control. South Africa remained stable and Hungary benefited from lower energy costs and higher exports to mainland Europe while our Thailand unit did face margin pressure due to high costs and competition from China. The aluminum foil business delivered its best ever quarterly sales driven by higher volumes and supportive trade measures on the notified antidumping duty.
The current BOPP demand supply situation is likely to remain favorable in the domestic market given known market developments in the performance film and foil business. We remain focused on profitability by commercializing more new VAPs and accelerating sales of high impact vamps. To support future growth, the board approved a rupees 490 crore capex investment in a BOPB film facility in Indore equipped with a 10.4 meter wide Prokna line and metallizer. The project is expected to be completed in 24 months, further strengthening SRF’s leadership in high performance sustainable packaging films. Our technical textiles business recorded rupees 467 crore in revenue during Q1FY26.
Weak domestic demand of nylon tire cord fabric and pricing pressure in welding fabrics due to Chinese competition impacted the business performance. However, higher exports in belting fabrics and healthy sales in polyester tire cord fabric helped offset some of the challenges. While NTCF volumes improved sequentially, they remained below last year’s levels. Ongoing capex of the new dipping machine and ramp up of recently commissioned belting fabric lines positions the business for future growth with continued focus on high margin value added products. In other segment we saw muted performance with coated and laminated fabrics facing soft demand. However, coated fabrics retained its domestic leadership with monsoon demand expected to boost growth.
Production capability and operational efficiency improved through installation of new looms. Despite industry overcapacity, laminated fabrics maintain price leadership and upcoming equipment additions will further enhance in house production capabilities sequentially. Our overall interest cost has also witnessed some softening as both global and local interest rate benchmarks were on a downward trend and is likely to impact our cost of borrowing in FY26 positively. I am happy to share that during the quarter SRF was honored with two prestigious awards reflecting our commitment to quality and social impact. The fluorochemicals business received the 0ppm award from Toyota Kidlowskar Motor Private Limited for flawless performance, while the SRF foundation earned the CSR Times Gold Award 2025 for its rural education program in Mewar.
During the quarter, our CSR Wing SRF foundation undertook transformative initiatives around our manufacturing locations, empowering close to 2,500 students in Dhind via a digital bus, training 100 plus educators in tech, upgrading classrooms for 140 children in Nammampati, distributing medical equipment to 12 sub health centers in Dhar and delivering mobile health care across 15 villages in Bharuch. In conclusion, we have had a solid start to the year supported by a steady performance and continued momentum across key segments. Our commitment to capital expenditure remains robust with planned investments of around 2,400 to 2,500 crores during this fiscal year.
The recent announcements reflect our confidence in business and its long term potential. SRF has built a strong, diversified foundation that enables us to adapt to evolving market conditions and pursue growth opportunities with agility. While certain sectors may face near term headwinds, our overall outlook remains positive and we are firmly focused on delivering sustainable long term value through innovation, strategic initiatives and operational excellence. On that note, I conclude my remarks and would be glad to discuss any questions, comments or suggestions that you may have.
I would now like to ask the moderator to open the line to for the Q and A session. Thank you very much.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
The first question is from the line of Nitesh Duth from Anandrati institutional equities. Please go ahead.
Nitesh Dhoot
Yeah, good afternoon. Thanks. My first question is on. Is on the agro of 250 crores. That’s for 12,000 metric tons. So assuming 1 point percent this appears to be a sub $3 product. Can you give some color if it’s an existing product or a new product? And if you could also clarify any particular reason for capex in lower value products.
Rahul Jain
The way we are looking at it while the 12,000 is A rated capacity the way we are looking at it it is also to think about the capex from the capacity will actually depend on the base product mix. As you keep going up the value chain and and keep doing differentiated products. That is something that we believe we needed to do. So therefore while 12,000 may be a nameplate rated capacity which is a requirement to be given the idea here is to not set this up as just that product. It is a requirement for a very large product. Again the assumption of 1:1 may not be correct on this side and therefore we believe this sets up the foundation for the future for us.
Nitesh Dhoot
But is this an existing product or is it a new product completely?
Rahul Jain
For us it is a new product completely. We have not done this in the past.
Nitesh Dhoot
Okay so secondly on. On the capacity utilization in R32. I mean what’s the current capacity?
Rahul Jain
Your voice is cracking. Could you repeat please? No, not very well.
operator
Sorry to interrupt sir but I may request you to regen the question.
Nitesh Dhoot
Just one moment. So is it any better now? I’ve just tried to adjust.
Rahul Jain
Yeah, much better. Please go on.
Nitesh Dhoot
Yeah. Okay. So yeah, so I was asking on the capacity utilization the current capacity utilization in R32 and what will be the likely exit rate for FY26 and you know if you could good give some outlook on the R32 prices. You know what we heard from the channel is that you know there has been some softening in prices in the domestic market. You know if you could just you know give some color there.
Rahul Jain
Two or three questions together nitesh. The first one about capacity. We our current capacity utilization is pretty much as much as the rated capacity that we have on 32. So that’s effectively full capacity utilization. Again from an FY26 exit perspective our target is to continue this at that Level. Right. So that’s the position on it from a pricing perspective. You have to also understand that pricing of this is also a function of the current demand and supply. There is always the seasonality that prevails within the 32 or HFC position overall. So and again that is your channel check in terms of what the pricing is either lower or higher.
We believe that the pricing is strong and given overall market conditions it is likely to remain that way. That’s what we believe, Nitesh.
Nitesh Dhoot
So thank you. So just one last question on packaging films. So you know, I mean the typical equipment ordering, you know, ordering to plant commercialization would typically be, you know, around 24 months. Right. So. But are there any other faster routes? You know, also asking this in context of the recent supply disruption that happened in the industry and you know, also if you’ve seen any increase on the Bopp import side since the incident.
Rahul Jain
So two things, Nitesh, I think the performance films and aluminum foil business and specifically Bopp segment in that the supply situation, what you’re saying is right. But there are no other routes. You will have to buy the machinery from the two global suppliers on it. If it is Bhopet or Bopp, there are two large global suppliers being Brooklyn and Donier on it. So that’s how it works out. No shortcuts around it. That’s one element of it. With respect to. The second question was with respect to the overall situation in terms of the supply on Bopp.
Yes, it remains tight. India will be short. From an overall perspective, the incident that happened is roughly about 25% of the India production capacity. So India will be short and therefore there will be a need for some imports as well.
Nitesh Dhoot
Thank you Rahul ji. That’s all from my side. Wish you all the best.
Rahul Jain
Thank you.
operator
Thank you. The next question is from the line of Arjun Khanna from Kotak Mutual Fund. Please go ahead.
Arjun Khanna
Sir, thank you for taking my question and congratulations for a great set of numbers. Sir, I have two questions. The first question is on the N2 N3 regulation for the MHCV side. We have referred to that in a market trends part of it in terms of 134AMy understanding is we are the sole HFC manufacturer of this gas in India. Is this correct? And what would our market share be at this point in time?
Rahul Jain
See again, I think to a certain extent from an HFC perspective, overall market share is roughly in the range of 60 to 70%. From a domestic market perspective, balance gets imported. From a 134A perspective there are a couple of new capacities that have started on 32 but on 134A, you are right, we are the sole manufacturers.
Arjun Khanna
Sure. And just in terms of pricing, while you did allude to R32 given with this regulation, do you see a step up in terms of terms of demand? And since it’s already in the system now, are we seeing benefits from the same.
Rahul Jain
I think that demand kicks in from 26 onwards rather than now. Roughly speaking, I would say it should start to see Demand positive in 26 only, not in the current year. From a 134A perspective.
Arjun Khanna
Okay, sure. The second one is on the PTFE and the aluminium foil. So these have been recent projects by us. We were expecting a ramp up in FY26. If you could comment on both of them please.
Rahul Jain
On the aluminium foil, Arjun, I think we kind of said in the release as well that the ADT that has been levied for five years is a positive. We are starting to see traction on that side in the domestic market. Our overall goal here is to continue to grow the market and to increase our production. On the aluminum world side, PTFE also, we believe there will be some positives in the overall FY26 perspective. From PTFE global sales free flow fine cut should take up a better position going forward.
Arjun Khanna
We were earlier talking about exports also of aluminum foils. We haven’t seen much in export data. So is this something that will happen maybe in the second half of the year or we are now concentrating post the add on the domestic market?
Rahul Jain
There are US and European customers that have been identified. Some of the sampling will start happening and hopefully some of the traction we should see in FY26 itself.
Arjun Khanna
And just on this, what utilization levels are we currently at for both PTFE and Yes sir.
Rahul Jain
Aluminum foil we will roughly be I would say at about 50, 60% PTFE also in similar ranges.
Arjun Khanna
Sure. Wishing you all the best. Thank you.
Rahul Jain
Thank you Arjun.
operator
Thank you. The next question is from the line of Sumant Kumar from Motilal Oswal. Please go ahead. Yeah.
Sumant Kumar
Hi Rao. So in Specialty Chemical when we talk about healthy revenue growth, so is it because of the newly launched product or majorly contributed or newly launched product or existing product is diagnosis.
Rahul Jain
Think about FY26 Q1, FY26, yes, I would say attribute a larger growth into the newly launched product. But I think when you compare it to cply where we were seeing a bit of depression from a overall inventory cycle that we have spoken about, we’ve kind of Seen some of the older products or some of the legacy products also go up in volumes. Although in some cases we’ve seen, let’s say pricing to be slightly lower. The point also is that some of these products we are saying that we will ensure that our market share remains positive and continue to find answers to, let’s say some of the pricing pressure that’s there.
Sumant Kumar
And considering a current scenario, can we assume chemical business what margin we have shown in Q1 it is going to continue in Q2.
Rahul Jain
Look, I’ve always looked at it from a annual margin perspective. Sumant, you are aware of that, right? Again, quarter on quarter margin may not be the right way to look at it and therefore we will continue to be on the same position on that side. I don’t think we want to look at quarter on quarter margins.
Sumant Kumar
Okay. And any change in chemical business growth guidance for the year.
Rahul Jain
I think we’ve done Fairly well in Q1. When you think about it, why should there be a change? You want a higher change or a lower change?
Sumant Kumar
Higher, higher, higher.
Rahul Jain
So you will always want a higher one. But I’m saying we are still sticking to the original guidance.
Sumant Kumar
Okay, thank you.
operator
Thank you. The next question is from the line of Jason Sones from IDVI Capital. Please go ahead.
Jason Soans
Yes sir. Thanks for taking my question. So sir, just in terms of the rev gas pricing, of course it has helped us this quarter and roughly speaking, R32 quarter on quarter has increased by around 20%. That’s what we’ve come to. That’s what the pricing increase reflects. Now I just wanted to understand, you have also mentioned in your presentation that domestic market was weak. So could you give us some color in terms of how this has panned out just roughly ballpark in terms of volume or price, how the performance has been so strong in terms of the fluorochemicals business.
And also a related thing is do you think this pricing will be sustainable going ahead?
Rahul Jain
Look, I would really say two things here, Jason. The fact is that there has been a positive in gas pricing. I don’t want to put a number of 20% or 25 or 30% around it. From a domestic and an export market perspective, I can only give you color in terms of saying that the pricing has been positive. Right. The other thing in terms of overall, let’s say market situation, RAC production is known data that it has been weak. And that’s why we have been saying that the overall RAC production when we think about it has been lower than when we compare it to cply.
So that’s how we are looking at it. We’ve been able to find some countermeasures and continue to utilize our capacity to the maximum possible. The second question I kind of forgot. Could you repeat?
Jason Soans
So just wanted to know, do you think this pricing trajectory, do we expect this to continue going ahead? The strong pricing trajectory.
Rahul Jain
You want to look at it is the global pricing on this. I think there are various positions in terms of where China is, where overall capacity positions are playing out. We do believe that the pricing should remain strong. But again, there could be changes in overall demand from a world market perspective. Although we don’t see that happening.
Jason Soans
Okay, sure, sir. And so my next question, I just wanted to know the progress on the various AIs under development under the specialty chemicals segment.
Rahul Jain
Going on, I think there are a few that are under, let’s say campaign positions. Hopefully some of that ramp up will get seen in FY26. But there are larger products that we are, we are talking to and are in various stages of development in the AI phase.
Jason Soans
Okay. And so just wanted to know, I mean, of course it’s a well known fact that last quarter one major competitor witnessed a major fire and that. And that must have positively impacted our performance since business just wanted to understand what is. Did you, you know how much of a positive impact was there and how. Do you, how much do you think. It is sustainable going ahead?
Rahul Jain
Again, two things. We are all aware of what is happening in the market, right? There has been that incident that has caused. There is a positive in terms of the fact that Bopp demand and supply situation has kind of got changed because of that. But frankly speaking, I would say that to be able to quantify it is very difficult.
Jason Soans
Sure, sir. Thanks. Those were all my questions. Thank you.
Rahul Jain
Thank you.
operator
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in this conference, please limit your questions to two per participant. The next question is from the line of Sanjay Jain from ICICI Securities. Please go ahead.
Sanjesh Jain
Yeah. Good afternoon, sir. First on the specialty side, you mentioned that there was some strategic pricing action that has been taken. And in the initial remark you said that there were pricing pressure in a scenario of pricing pressure. When I think when you say strategic pricing, you’re talking of upward revision now what’s transpiring? Is there certain?
Rahul Jain
That’s our assumption. Ranjesh, what we are saying here is that in certain cases, in certain products, we are not willing to let our market share go. We are working on cost positions, we are working on Our overall, let’s say utilization of the product and therefore want to continue it like that. We are not saying that we have taken certain strategic pricing decisions upwards or downwards. We are just saying that we want to look at some of the products as one of the largest products that we have and continue let’s say gaining market share.
Sanjesh Jain
Okay. Okay, got it. Got it. That’s clear. Second on the R32 said that India market was weak. But we as a countermeasure found some market in the exports which are the markets which are showing traction for R32 for us.
Rahul Jain
I don’t want to go into positions for various other export regions. I’m saying overall exports were higher from a volumetric perspective and it could be to the US market. It could be towards the Middle east and Southeast Asia markets. But overall is where we are at. I’m not talking about various jurisdictions or geographies here.
Sanjesh Jain
Okay, same geography but more volume is what you are telling.
Rahul Jain
I have not said any of that interpretation at your end.
Sanjesh Jain
One last question from my end before I get back into the queue for the specialty. What we are hearing commentary from the global agrochemical is sort of slightly vicish from earlier. Are you seeing that trend in your discussion with the customer? Because the customer ones who are listed large agrochemical companies have been downward revising their guidance. Anything that we have picked in our discussions.
Rahul Jain
I think our order book is in fairly good position. Sanjesh. There could be various positions that some of the global wages have. And therefore from their overall perspective they are looking at probably a slightly negative outlook. I don’t think we are in a situation where we are saying that there is a negative outlook on our end result. Well, I think we are continuous to. Can we continue to stick to our overall guidance here.
Sanjesh Jain
Got it. So we stick to the thing we said earlier that last quarter. We said that 60, 70% of our order book is already booked. So that gives us a confidence of growth and we stick to that point.
Rahul Jain
Correct.
Sanjesh Jain
Got it. Got it. Thanks. Thanks Rahul sir for answering all those questions. And best of luck for the coming quarters.
operator
Thank you. The next question is from the line of Naushat Chaudhary from Aditya Birla Mutual fund. Please go ahead.
Naushad Chowdhary
Thank you. Congrats on a good set of numbers. 2, 3. Quick clarification. First you touched upon R467 which is our in house developed baby. Just wanted to understand the current revenue size and can this really be big for us in the future in next four or five years?
Rahul Jain
Look, I can’t give you revenue by gas, right? Overall HFC positions were higher. That’s all that I can tell you. But gas by gas I don’t either give revenue or volume. But yes, given the fact that this is a replacement and for 22 we certainly believe that let’s say for a 5 to 10 year period this could play out as a large positive.
Naushad Chowdhary
Sure. Second, on the on the fresh land acquisition similar or larger size of compared to the hedge, any development there or anything you would like to touch upon.
Rahul Jain
I can only say there is work going on on that side. Hopefully there should be something that comes through in the near future. Once there is an announcement around it you will certainly come to know. But as of now there is I can only tell you what going on.
Naushad Chowdhary
And last on the packaging business side of despite marginal revenue growth we have seen a good margin jumper sequentially and year on year as well and historically.
Rahul Jain
I didn’t ask the question. Repeat please.
Naushad Chowdhary
On the packaging business side, despite marginal revenue growth we have seen a decent jump on the margin side but historically it has been on an average 14 15% margin business last 23 years was in a problem. Do you think the cycle has bottomed out and we should quickly go back to the normalize on that at least.
Rahul Jain
Look again I think you are well aware probably better than I am in terms of the current market situation on what has happened to one of the market participants on it. I think given the situation, the supply demand situation has completely twisted on its head on Bopp. Hopefully that can sustain over a period of time because capacities don’t come up quickly it will take time to probably someone else had asked the question in terms of saying can there be a shorter route to get these capacities online? To which I said it’s practically impossible.
Naushad Chowdhary
Sure. Should this lead to the normalized average margin of the packaging business versus what are today?
Rahul Jain
Look very very difficult to be able to say marginal increase or or more increase. So again it will depend on the demand and supply situation only.
Naushad Chowdhary
Thank you. All the best.
Rahul Jain
Thank you.
operator
Thank you. The next question is from the line of Ankur Perival from Access Capital. Please go ahead.
Ankur Periwal
Yeah sir, thanks for the opportunity. Your There is a comment wherein we highlight that you know the stricter registration norms are delaying some bit of product launches from the innovators. Is this comment in general? Yeah, yeah, yeah. Correct. So so just wanted you know your clarification here. Is this referring to some of our AIs that we are making or it is a general comment for the industry at large?
Rahul Jain
It’s more a general comment, but yeah, to a certain extent dovetails into the AI position as well.
Ankur Periwal
Okay, but as you mentioned, your 20% growth guidance, you know, remains intact. Which factors in such delays or maybe the pricing led, you know, strategic initiatives which we had highlighted there. Will that be the right statement?
Rahul Jain
I would say that the way we are looking at it is the fact that we are still very confident that we will be able to get there. There may be some delays but given all of the current situation prevailing, we are fairly confident whether AI or non AI, we should be able to get that that number.
Ankur Periwal
Greater. Secondly, the new Pharma Intermediate that we had launched and I’m going back to our earlier comment wherein we had expected the pharma business to grow at a much faster pace. Will this be a bigger driver for that ramp up or this is, you know, how should one look at the new launches on the pharma side there.
Rahul Jain
Again the way we are looking at it Ankur, is that Pharma Intermediate, agrochemical products, all of these will continue to come through. Right. When we say we have launched a new product doesn’t mean that the commercial scale quantities have started to flow through. It’s now been approved as the customer need to get get more stable. We will continue to sell the product is the way we think about it.
Ankur Periwal
Great, sir. And just lastly on the the fluoropolymer side, any timelines you’d like to share from a ramp up perspective? Given that we are almost 50, 60% utilized PTSE. Correct?
Rahul Jain
Yeah. I think FY26 should be a better year than FY25 for the PT segment overall.
Ankur Periwal
So should we expect let’s say full ramp up by the end of this year? Let’s say Q4 at an exit run rate or it may take slightly longer.
Rahul Jain
75, 80% exit FY26.
Ankur Periwal
Okay, fair enough. That’s it from my side. Thank you and all the best.
Rahul Jain
Thank you.
operator
Thank you. The next question is from the line of Abhijit Akela from Kotak Securities. Please go ahead.
Abhijit Akella
Yeah, good afternoon and thank you. Just one question on the refrigerant side, Raoji, for R32, what would our estimate of total world demand be at this point in time? And if you have a forecast for the next five years, you know, by 2030 or so, that would be great to have as well. And also how much might China production be at present for the product? Thank you.
Rahul Jain
Sorry Abhijit, I don’t have that data available readily. I will probably relook at the position on this and maybe come back to you separately on this. I don’t have both those data points available readily.
Abhijit Akella
Sure, that’s fine, thank you. And maybe just one other thing then you did mention at the close of your opening remarks that some businesses could see some near term pressures. So if you could please just specify, you know, which areas you might be seeing that in.
Rahul Jain
See again that’s a more generic comment. I think we are facing some, let’s say pressure on the technical textile front given where demand is given where the overall position is. So that’s something that is there but overall I don’t see a negativity around it. I think our commitment to Capex has been strong. We are, we are continuing to, to put in more money on the Capex. Some headwinds will always be there. Business is not linear, it will continue to evolve over a period of time. So I think that was a more generic comment rather than a specific comment.
Abhijit Akella
Okay, got it. Thank you so much sir. All the best.
Rahul Jain
Thank you.
operator
Thank you. The next question is from the line of Vivek Rajamani from Morgan Stanley. Please go ahead.
Vivek Rajamani
Hi sir, Congratulations on a good set of numbers. Just one question on the Refrigerant Gases XFR32. If you could just touch upon the kind of pricing trends that you’re seeing for the remaining products and how you see that evolving over the course of fiscal 26. Thank you.
Rahul Jain
Vivek. The way I would look at it is Not X of R32. I think thematically what we have seen is HFC prices overall are higher. I think stable to higher is the trend that we will end up seeing during FY26 also and that’s the thematic. I can’t give you gas by gas pricing because it will depend really on which market it is going, what kind of packaging it is going, the SKU wise positioning. So I don’t kind of talk about that overall but thematically better prices is what we’ve seen in Q1 and hopefully that trend can continue.
Vivek Rajamani
Sure sir, that’s clear. And just one clarification from a domestic export mix the 50, 50 odd percent number would still be the same for this quarter or has that mix changed purely on the Refcas side?
Rahul Jain
HFC decided I think about 60% domestic, 40% export from a volumetric basis. Close you soon.
Vivek Rajamani
Sure sir. Thank you so much and all the very best.
operator
Thank you. The next question is from the line of Krishan Parvani from GM Financial. Please go ahead.
Krishan Parwani
Yes. Hi Rahulji. Congress on a good set of numbers. Two from my side. First, any opening remarks. You mentioned that registration and scale up of 1 AI is expected in FY26. So what is the status of the rest? 4 to 5 years. Would there be scale up of any other AIs apart from the one that you mentioned in F26?
Rahul Jain
Again the way we look at it Krishan, is that there are four or five in let’s say commercial batching situation. Hopefully because these are dependent on customer registration and customer positions on. On it. We don’t know the exact timing of it but likely to some traction in FY26 is what we are thinking about.
Krishan Parwani
Got it. And secondly, just on this specem side, what would be your domestic specialty chemical sales as a percentage of overall specem sales? A rough range would be helpful.
Rahul Jain
Roughly speaking, I would say 60, 40, 60 export, 40 domestic. But the point to make also is that even that 40 is at the behest of some global majors only.
Krishan Parwani
Yeah, so earlier I think that used to be 80 export, 20 domestic. So that makes us change considerably.
Rahul Jain
At some point in time it was probably 95 export, 5% domestic. So that situation is also kind of evolving over a period of time.
Krishan Parwani
Got it. Thank you very much and wish you all the best for the future. Thank you.
Rahul Jain
Thank you.
operator
Thank you. The next question is is from the line of Kumar Somia from Ambit Capital. Please go ahead.
Rahul Jain
Are you allowed to ask questions?
Kumar Saumya
So just one question sir. So just wanted to understand the domestic and export mix of R32. Last quarter it was 6040 and now you said this quarter as well 6040.
Rahul Jain
6040 was overall HFCS for 32. I think it was probably in the range of. I don’t know, I’ll have to check. Give me a sec. 60 40. Again roughly speaking, same 60, 40.
Kumar Saumya
Okay, okay. No. So I was of the view that domestic demand has been weak and we have pushed more volume in the export market. So this Q would have been different this quarter compared to the last quarter.
Rahul Jain
Again, I don’t. So again the fact is that generally speaking in this quarter we would expect a better domestic demand. But given the weakness in the RAC segment, that demand was weak. So we had to kind of find countermeasures from an export market perspective.
Kumar Saumya
Thank you sir, that will be all.
operator
Thank you. The next question is from the line of Meet VORA from MK Global. Please go ahead.
Meet Vora
Yeah, thanks for taking my question sir. First question was with respect to our 467A. Just want to understand what would be the current Indian market size and global market Size, Is it sizable today or is this still getting as a development of probably replacement of R22 globally?
Rahul Jain
Again, very difficult to be able to give you the exact data on it. The fact is that this is a replacement for 22, right. And as the let’s say secondary market or the trade market develops and this kind of becomes more available in the market, we will kind of find out. I don’t have a sense of that right away.
Meet Vora
Understood, sir. Second, sir, was more of a clarification. We have mentioned in the PPT that our EHF3 plant is getting stabilized. So is it now running at optimal capacity or the ramp up is yet to be seen?
Rahul Jain
Full ramp up, yet to be seen. But yeah, it is kind of getting there.
Meet Vora
Okay. And just one last bit. With regards to HFC capacity utilization, we mentioned that we are now running at optimal capacity rate in terms of all HFC specific put together.
Rahul Jain
That was more on 32.
Meet Vora
Okay. Okay, understood sir. Thanks. That’s all from my side.
operator
Thank you. The next question is from the line of Nitin Nagarwal from DAM Capital. Please go ahead.
Nitin Agarwal
Thanks for taking the question. Sir, with respect to your comment around, you know the, the quota regime in India for HSCs and you know, the challenges that some of the other competitors may face in putting up larger capacities. Sir, what is the typical time for somebody to, you know, that will be required. Somebody put up capacities to meet the quota requirements.
Rahul Jain
Okay, so 24, 25, 26 are the measurement years. Right. 27 being the three year from a calendar year perspective. Right. Somebody will have to look at capacity from the, the three years of production and maybe a certain position with respect to the 65% of 8, 9 or 910 of the 22 or HCFC capacity in terms of overall production. The other position on that also is with respect to how much you’ve sold during the that period which is 24, 25, 26 as the overall position which will become your baseline. So I think that is how it is going to play out.
But again, each one to their own.
Nitin Agarwal
And sir, for our perspective, are we looking to put up any incremental capacities before the quota, you know, the 26th period ends?
Rahul Jain
Not as of now. I don’t think that is, that is what we are looking at and I don’t think we have any plans around it. Because again, you have to understand the overall position of the quota regime. Capacity additions were only allowed till a certain point in time post that they may not be considered for Montreal. And if you set up capacities by let’s say close of 26. Where will you sell that capacity? So you may have the production capability but no consumption capability. Sorry guys. Please go on.
Nitin Agarwal
Yeah, yeah.
operator
Okay. Thank you. The next question is from the line of Rohit Nagaraj from BNK Securities. Please go ahead.
Rohit Nagraj
Thanks for the opportunity and congrats on goods of members. So just one question on the agrochemical intermediate capacity new capex that we have announced. So in terms of margins for the product, will it be in line with the company wide specialty chemical margins? And a light question to that. In terms of the capacity it seems a large capacity. So at any point in time in future will it be fungible? I mean you said it’s a nameplate capacity though. So will it be fungible at any point in time? Thank you.
Rahul Jain
Okay, I have not understood the second question. But let me answer the first one where you are saying that are my margins similar to the margin of some of the competition in this I have not evaluated.
Rohit Nagraj
Sorry, not competition but maybe our company wide margins on the second business.
Rahul Jain
See again I don’t give out breakup of the a bit margin between chemicals, between fluorochemicals and speciality. So that’s not what we do. Right. So not happening again.
Rohit Nagraj
Sure, sure. The allied question, in terms of capacity you said that it’s the name plate capacity. So we have taken. Right, right. The 12,000 tons capacity. It’s a nameplate capacity and we may reach that level or we may not. But we have taken approval. So at any point in time if the is the capacity be fungible for any other products or will it always be a dedicated product till the life cycle of the final AI .
Rahul Jain
A product mix it will be dependent on the product mix of various products that can be produced. So yes, it will be to a certain extent fungible between products.
Rohit Nagraj
That’s all from my side. Thank you and all the best.
operator
Thank you. The next question is from the line of Madhav from Fidelity. Please go ahead.
Madhav Marda
Hi sir. Good afternoon. Just one question on the quota. When you said that you know 2024-2026 is the quota measurement period if anyone is selling, let’s say instead of R32 if they’re selling R125 in the domestic market in this period of 2024 to 2026, given that’s an HSC as well, does that give you the ability to sell R32 if you’re already selling 125?
Rahul Jain
Probably on the WP equivalence basis. So if you were selling 125 in the domestic market? Yes. You get the 3x multiplier on that. You can do 32 as well. The only point is that there is R125 sales in India. It is largely an export product.
Madhav Marda
Okay. But 125 goes into some 410A consumption right. In the country. So if you’re selling.
Rahul Jain
As the 125, it only goes to the export US market.
Madhav Marda
Okay. Okay. And so the just a follow up there that the HFC consumption of 2024-26, it’s that gets added with your the HCFC production you did in 2009-11. Right. So it’s a combination of these two or it’s either or like this and that. Or this or that. Like how does it work?
Rahul Jain
Positions on this. There is one with respect to production capability and one with respect to sale capability . So there are two different things. And like I said, at the right point we will set up a call along with Prajan to explain the entire detailed nuance of this. So maybe that’s the right point to answer. Ask that question.
Madhav Marda
Okay, perfect. Sounds good. Sounds great.
operator
Thank you. The next question is from the line of Davancha from Alpha Accurate Advisors. Please go ahead.
Unidentified Participant
Thanks for the opportunity. Sir. So my question is on the R32. If we look at, you know, the global capacity, it is always in the excess supply than the demand. So what gives us the confidence that the prices are likely to sustain? And Secondly, I think IGAs also came out with capacity in Middle East. So are you seeing any incremental volumes from there for R32 and do you foresee any other incremental capacity coming in in the global market except the Indian players who have announced the expansion for R32.
Rahul Jain
Like I said earlier, also global capacity, you know better than I do, right? So I am unable to comment on the first one in terms of pricing. In terms of overall position of 32. I think I answered that question in a pretty previous question by someone that we believe where current demand and supply situation is pricing remains strong. So that’s how I would really look at it. Being able to comment on detail where whether the UAE plant is producing or not or it is being or is it selling. I think you know pretty much as much as I do.
So I kind of pass that question.
Unidentified Participant
Awesome. Okay, thank you.
operator
Thank you. The next question is from the line of Surya Narayan Pata from Philip Capital. Please go ahead.
Surya Narayan Patra
Yeah, thanks for this opportunity. Sir, couple of clarification. Only this R32 price appreciation in the Recent month is it led by any production disruption by any large global producer? Because that is how it is been reported by couple of global listing articles. So could you clarify.
Rahul Jain
To the best of my knowledge I think it is a current demand and supply situation Given where China is given their overall position is given the fact that there was a huge pre quota filling that had happened in the US There is there was a massive overstocking that happened again when you think about it thematically Surya World needs more 32 right? And therefore our capacity capacity and maybe a couple of other capacities we should we believe that they are in good shape right? Given also the fact that some of the US blends use more R32 than let’s say the HFOS.
So overall seems in good shape But I don’t see or I have not heard of any single disruption leading to capacity positions.
Surya Narayan Patra
Okay. Second clarification sir about the agrochemical price or the specialty chemical pricing in the global market. What you have mentioned in the presentation and you said that there is a kind of sign that the pressure is anyway persist and this is likely to the new norm going ahead. So given that is it a kind of a cautious means Are you giving a kind of a cautious this thing indication about the margin situation for our overall specialty chemical business going ahead or how should one think about it?
Rahul Jain
I think that’s the position that we’ve taken from an overall specialty chemicals business perspective the way we are looking at the specialty chemical business and I’ve talked about it in the past as an answer to a few questions in the earlier comments that we still believe that growth is is there right Again in some of the products. What we have said is we have been global leaders. We don’t want to give up our position as global leaders in some of those products. It’s probably more a product based comment rather than a generic comment in terms of the overall margin profile of the specialty chemicals.
That’s how I would really look at it.
Surya Narayan Patra
Okay, just one point sir. More here in case of capex situation. See in the FY25 we have done something like 1100 odd crore kind of capex. Obviously a lower number but again we are started. We are commenting about 2,500 crore kind of capex for the current year. So this is a kind of the visibility, the demand situation. All that is giving a kind of positive indication or and last year was a cautious stance in terms of capex announcement and execution. What was this indicating really?
Rahul Jain
I think you are reading too much into it. I think last Year we had clearly said that the capex cycle that we are in given the market situation also we kind of said that we are not going, let’s say very large on CapEx today. What we are saying is we have kind of seen market improve and therefore our capex position is a function of how the market improvement has happened and therefore taking the capex position upward than let’s say when compared to FY25. FY25 was also here because when we think about FY24 there were large capitalizations that happened during that period of time and therefore we wanted to digest some of that capex that had happened.
Surya Narayan Patra
Sure, sir. Yeah. Thank you sir. Wish you all the best.
operator
Thank you. The next question is from the line of Aman Kumar from AK Securities. Please go ahead.
Unidentified Participant
There is a significant rise in the price of Bopp films in the domestic market. So is this happening to the overseas market? Also.
Rahul Jain
I have not looked at export pricing on but you are right in terms of the Bopp given the current demand and supply situation in the market.
Unidentified Participant
So it is confined to India only in the international market margins are same. And sir, what about the buffet? There is over capacity in the puppet market. So when we can think that this over capacity gets over.
Rahul Jain
Look, I think the. The way we think about it from a bupet perspective also there is some change in the demand and supply situation there as well. Not many large new lines coming up globally on the corporate side. So hopefully in the next few years we should see some positive on that side as well.
Unidentified Participant
Right now margins are better than last year.
Rahul Jain
Certainly.
Unidentified Participant
Okay sir, thanks a lot.
operator
Thank you. The next question is from the line of Amit Agicha from HG Haba. Please go ahead.
Amit Agicha
Yeah, good afternoon sir. I’m audible.
Rahul Jain
Yeah, you are. Please go ahead.
Amit Agicha
Yes, thank you for the opportunity. So what are your ROC targets? Post commissioning of the new projects.
Rahul Jain
For which business?
Amit Agicha
For all the four businesses.
Rahul Jain
Again, that’s not how we look at I think overall when we think about ROC IRR and payback period, each business has a different position, right? The specialty chemical business are more let’s say from an overall perspective driven by positioning over a period of time. While when you think about the performance films and FOILS business those are slightly more commoditized and therefore will have a slightly lower ROCE target.
Again, I think capital is not a not a constraint in that sense and we continue to invest in more value added products even on the packaging or the performance films business side I think overall targets remain in excess of 25% more from let’s say the chemicals business slightly lower maybe 200 basis points from a packaging film business perspective on an overall long term.
Amit Agicha
And the second question was connected to the depth like what.Is the current debt levels and what is the company strategy?
Rahul Jain
Current debt levels? Yes debt roughly speaking about 32033400 crores of the overall net debt position Again debt is effectively a function of how much cash you are you have available Given our current situation we believe the overall number remains there or thereabouts with plus minus 200 crores as the overall position given where the capex cycle would be at that point in time.
Amit Agicha
Thank you sir. All the best for the future.
Rahul Jain
Thank you.
operator
Thank you ladies and gentlemen. We will take that as the last question I would now like to hand the conference over to the management for closing comments.
Rahul Jain
Thank you everyone. I hope we’ve been able to answer all of your questions. I wish that each one of you remains safe and healthy. If you have any further questions we would be happy to be of assistance. We hope to have your valuable support on a continued basis as we move ahead. On behalf of the management I once again thank you for taking the time to join us on this call. Thanks and bye bye.
operator
Thank you on behalf of SRF limited that concludes today this conference. Thank you for joining us and you may now disconnect your lines.