SRF Limited (NSE: SRF) Q4 2025 Earnings Call dated May. 13, 2025
Corporate Participants:
Nitika Dhawan — Head of Corporate Communications
Ashish Bharat Ram — Chairman & Managing Director
Rahul Jain — President & Chief Financial Officer
Analysts:
Ankur Periwal — Analyst
Arjun Khanna — Analyst
Naushad Chaudhary — Analyst
Nitesh Dhoot — Analyst
Sanjesh Jain — Analyst
Madhav — Analyst
Pankaj — Analyst
Rohit Nagraj — Analyst
Meet Vora — Analyst
Vivek Rajamani — Analyst
Keyur Pandya — Analyst
Abhijit Akela — Analyst
Krishan Parwani — Analyst
Dhruv Muchhal — Analyst
Archit Joshi — Analyst
Jason Soans — Analyst
Anirud Shetty — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to SRF Limited Q4 and FY ’25 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 Ankur Periwal. Thank you and over to you, sir.
Ankur Periwal — Analyst
Thank you, Amshad. Good afternoon to everyone, and thank you for joining us today for this call. We at Axis Capital Limited are pleased to host SRF Limited’s Q4 and FY ’25 post-results conference call. We have with us today Mr Ashish Paratram, Chairman and Managing Director; and Mr Rahul Jain, President and CFO of SRF Limited. I would now like to invite Ms Dhawan, Head of Corporate Communication at SRF to initiate the proceedings for the results con-call. Over to you,.
Nitika Dhawan — Head of Corporate Communications
Thank you. Good afternoon, everyone, and welcome to SIF Limited’s quarter-four and financial year 2025 results conference call. We are pleased to have you join us today. On the call, we have our Chairman and Managing Director, Mr Ashish, along with our President and CFO, Mr Rahul Jain.
To begin, our will share insights into the company’s performance during the financial year 2023, followed by an overview of our strategy, business outlook and growth plans. After these remarks, we will open the floor for a Q&A session with our CFO. Please be reminded that any statements made regarding our outlook are forward-looking and are covered by the streamer included in the shared with you earlier. Without further ado, I invite our CMD, Ms to deliver the opening remarks. Thank you.
Ashish Bharat Ram — Chairman & Managing Director
Good afternoon to all of you. I extend a warm welcome to all of you and thank you for joining us today for SRF’s financial year ’25 earnings conference call. I trust all of you who have had the opportunity to go through our results and the presentation shared with you earlier.
The fiscal year 2025 has been — has been a journey of overcoming challenges and achieving significant milestones. The year began on a difficult note, primarily due to the ongoing environment in the chemicals business, which impacted sales in both our Specialty and Fluorochemical segments.
Despite these initial hurdles, we remain confident of our revival in the second-half of the fiscal year. As projected, we have done very well in half-two, especially in the 4th-quarter. Having said that, we are still navigating through uncertain times, geopolitical tensions are rising, the uncertainty around tariffs from the US remains and there is a chance that we could see global growth slowing down.
Let me now share with you my thoughts on the business performance in the fiscal year gone by and the growth opportunities that lie ahead. Fiscal year 2025 saw distinct challenges, offering significant opportunities for growth and resilience. During this period, SRS revenue increased by 12% to INR14,700 crores compared to the corresponding period last year.
The company’s EBIT rose by 6% to INR2,336 crores over the current-period last year. However, the company’s PAT decrease 6% to INR1,250 crores over the last year. Moving to my viewpoint on the performance and outlook of each of our three market-leading businesses now. I will begin with the Chemicals business.
The performance of the chemicals business can be categorized by two distinct periods. In the first-half, margins were adversely affected by challenging market conditions. However, revenues increased in the second-half with a particularly strong performance in the 4th-quarter. Regarding capital expenditure in financial year ’25, the Chemicals business invested approximately INR700 crore on various debottlenecking and expansion projects. Going-forward, we will return to a higher-level of capital expenditure intensity, consistent with our future aspirations.
Overall, during the fiscal year ’25, the Chemicals business achieved a 6% increase in revenue amounting to INR6,691 crores. More specifically, specifically in the Specialty Chemicals business, in half-one 50 — half-one financial year ’25, we witnessed tough market conditions. The prolonged inventory destocking cycle from our customers resulted in pricing pressures for some of our products.
On a quarter-on-quarter basis, we have done significantly better in the 4th-quarter of financial year ’25 when compared to the 3rd-quarter. While the broader industry continues to witness challenges emanating from the agrochemical market, our performance is strong, driven by positive traction in recently launched products and a gradual pickup in-demand for some key agrochemical intermediates, which was deferred earlier.
Our cost-competitive pricing strategies and robust export market performance further supported revenue growth. While we may encounter short-term challenges from China in a specialty chemicals business, we will continue to implement effective countermeasures. SCD has prioritized advancing customers’ new products and the developmental projects. Aligned with our objectives, we launched five new products in the agrochemical segment and three in the pharmaceutical segment during the fiscal year ’25. Efforts have been made to optimally utilize production capacities for existing products and to optimize cost structure for greater product efficiency.
Both the Miwadi and sites have continued to improve operational efficiency while managing an expanded portfolio of innovative products. Expertise in novel chemistries has grown and progress in the pharmaceutical sector has been encouraging. One key area which has redefined this business has been our implementation of debottlenecking projects. I can say with confidence that with all the minor — with all the minor capexes that we’ve incurred over the past 18 months, our overall capacity of this business has increased by close to 30%. SRF Chemical Technology Group exemplifies leadership at continuously driving innovation, developing advanced chemistries and building cost-effective rules for existing and next-generation products in the specialty chemicals and businesses.
SRF continues to invest in R&D to create enhanced capability and on that count, over INR150 crores was spent during financial year ’25. In financial year ’25, our Chemical Technology group worked on over 50 molecules, successfully scaled-up many products, filed 38 patents and had two patents granted, bringing the total to 151 patents granted.
Moving forward, with a strong pipeline and strong relationship we have with our agrochemical customers, we anticipate a better performance in the upcoming fiscal year. We have received registration of some of our future active ingredients and are hopeful of ramping-up sales for some of these products during financial year ’26 as customer demand for these pick-up. We have a fundamentally positive outlook on this business. We believe that regardless of the situation in China, we will be able to maintain or increase our market-share and move-out the value chain.
Having said that, we continue to operate in a bookah environment and while we acknowledge that the most challenging times may now be behind us, we’re still not in calm waters. Pricing — pricing pressures from China continue and we will have to wait through these waters. Coming to our fluorochemicals business, financial year ’25 presented mixed results for this business.
The year began with a strong pull-in the domestic market, but with margin pressure due to excess inventory coming out of China. However, as the year progressed, more so towards the end of calendar year ’24, we observed an increase in prices for refrigin gases in China, which is a positive development for our business.
Additionally, inventory levels in the US have decreased following the implementation of the quota regime. Domestic demand for refrigerants, particularly for room air-conditioners remained strong, leading to Record-high domestic sales in refrigerant gases in half-two financial year ’25. The clear segment achieved stable results during the year. PTFE is witnessing — PTFE is witnessing healthy growth in the domestic market with ongoing trials for free flow and pine grades progressing as planned. We’re also preparing for commercial sales of fine card products targeted at high-end application processes in export markets with expected positive results beginning in financial year ’26. A major milestone was accomplished in the 4th-quarter of financial year ’25 with the commissioning of the third EHF plant at Dahej. This development would facilitate the maximization of refrigerant gases production and sales, allowing us to leverage the quota regime effectively. During the year, the Board approved a project to develop fourth generation refrigerants, which is distinguished by the significantly lower global warming potential and reduced carbon footprint. This capex with an estimated investment of INR1,100 crores is stated for completion in about 30 months from the date of approval. The project highlights SRF’s leadership as one of the pioneering technology developers in the global refrigerant space. As an Indian company, we take immense pride in this advanced and eco-friendly technology with a significantly lower carbon footprint and global warming potential, which has been developed in-house. Our robust in-house R&D capabilities, which have been integral to our success for over two decades, will enable us to leverage our proprietary processes and technologies to innovate and drive the development of these next-generation refrigerations — refrigerants under our own brand. The same is initially looking to target the global markets that are transition to these low GWP alternatives and post 2032, the Indian market as well. In the future, our focus will be to optimize raw-material sourcing, cost-saving initiatives, strengthening capabilities new product portfolio with sustainability as our priority. Overall, the business performance is anticipated to improve over last year with maximum utilization of existing capacities and the commissioning of specialty — fluoropolymer plants. Broadly, I estimate that the chemicals business as a whole will grow at 20% or so in financial year ’26 and build a strong momentum for the years ahead. Over to the performance films and foil business now. After a detailed strategic planning process, the business has been renamed performance fills and foil business. This new name reflects the business diversification and expansion beyond packaging firms. It now includes aluminum foil, ventures into capacitor grade VOPP films and actively explores growth opportunities in both existing and new areas within the films and foil sector. This name change represent a commitment to innovation, growth and excellence. During fiscal year ’25, the performance fills and foil business reported revenue of INR5,554 crores, registering a growth of 24% over the previous year. Financial year ’25 has been a recovery for the performance fuels and foil business. All the market conditions remain challenging, margins improved in both and BOPP as capacity utilization increased with growing demand and limited supply addition during the year. Overall, the business achieved — achieved its highest-ever pack production with a focus on enhancing profitability, the business commercialized new vaps in both BOPED and BOPP and significantly increased the sale of high-impact VAPs. Our overseas operations improved this year, driven by better performance from our Hungary unit. On the capex front, the Board approved the establishment of a new manufacturing facility for the BOPPE film line in Indore during the year. This project enables to expand our existing BOPP substrate and VAP offerings and explore the innovative polyolefin BOPE substrate. Furthermore, it aligns seamlessly with our sustainability goals as polyolefin substrates like VOPP and VOP are recognized with the reco friendliness attributed to the mono family advantage and recyclability. The estimated cost for this venture is INR445 crores with operations expected to commence in approximately 25 months from the date of approval. Work on all upcoming projects, namely the capacitor grade BOPP film, BOPPE film and CPP line in India is progressing as per schedule. The business adheres to its philosophy of easy to do business with, focus on serving customers effectively every day. Sustainability remains a top priority and is integrated into all our operations. The business is strengthening its portfolio of sustainable product offerings, including products for mono-family structures, structures and PCR-based fills. SRF has completed its registration process for SEZ and DT units under relevant categories to comply with the plastic waste management rules. Efforts to reduce the carbon footprint, including increasing the use of solar power and adopting various energy-efficient initiatives in global manufacturing plants. Going-forward, SRF’s primary objective will focus on significantly increasing sales of high-impact products within BOPP and through the commissioning of new downstream assets, including offline coating machines in India and metalizers in Thailand and India. Maximize — maximizing profitability of the aluminium foil business will be a key area of concentration for the upcoming financial year. With anti-dumping duty being levied in cheap Chinese imports, we are better placed to increase domestic pricing going-forward. Besides that, we will also leverage our overseas relationships to enhance sale of aluminum foil. We will maintain our commitment to various three sustainability initiatives guided by the approach, reduce reuse and recycle. The vertical ramp-up of the newly-acquired line during enhanced assistance, our sustainable product offerings to customers, leveraging the advantages of production. Additionally, ensuring the smooth commissioning and scaling up of the capacity of great VOPP front-line will be a priority through the year. Moving to our technical Textiles business. In financial year ’25, the technical Textiles business recorded revenue of INR2,029 crores. However, the performance was adversely impacted due to weakness in belting car rates. During the year, Technical Textiles business expanded sales in Nylon 66 and PTCR products and consolidated its customer-base in belting fabrics. Despite facing margin pressure due to low-cost imports and lactum price fluctuations, SRF maintains — maintained its share in the flat N6 TCF market. Demand for belting fabrics was lower compared to the previous year due to delays in government spending and lower conveyor belt exports. Cheap imports from China affected the segment margins during the year. During quarter financial year ’25, we successfully commissioned the full BF capacity expansion. Throughout the year, PRY demand remained strong with geotextile and seat belts being key drivers and the segment performed well compared to the previous year with full capacity utilization. In terms of sustainability, the business increased its share of renewable power. In financial year ’26, markets are expected to remain moderate and margins will likely be under pressure due to cheap imports from China. Overall, the Technical Textile business is expected to deliver a similar performance to financial year ’25 with a focus on fully utilizing capacities, implementing cost optimization measures and offering premium and value-added products in carbrics. In other businesses, the coated and laminated business reported revenues of INR228 crores. Retained its market leadership in quotive fabrics overcoming weak demand for food grade liners with increased sales of other value-added products. The business is expanding textile capacity with new rooms and a set to boost profitability next year. Laminated fabrics ramped-up its new hot lamination machine, but faced challenges due to the minimum import price on Chinese knitting fabric. To address this, the business has produced its own knitted fabric with new knitting machines expected to be operational in the first-quarter of the new financial year. Going-forward, we anticipate strong demand for both coated and laminated fabrics. Coated fabrics will focus on ramping-up new looms in the walker, expanding its portfolio and commercializing high-densile strength coated fabrics. And laminated fabrics will aim to fully utilize its fabric knitting machines and lamination machines. As far as ESG is concerned, corporate citizenship and sustainability are integral components of our business strategy. This focus ensures effective resource optimization and meaningful contributions to the secular economy. At SRF, we uphold a high-level of sustainability disclosure, enabling us to identify and measure ESG risk accurately and develop a comprehensive long-term plan for continual improvement in this area. Our dedication to sustainability has received international recognition. The SRF facilities were created in Pundi and Virala Malay in Tamil Naru were awarded a Bronze Medal for financial year ’25 by EcoVaris, one of the most esteemed global business sustainability rating agencies. Further information on our ESG journey will be available in our annual report. On the SRF Foundation, we believe in the transformative part of education and are deeply committed to making a meaningful impact on the lives of last mile learners. Our corporate social responsibility initiatives are designed to enhance educational access and quality, ensuring that every child can thrive. In financial year ’25, we witnessed remarkable growth in our education programs, driven by unwavering dedication to transforming government schools into model schools. These efforts encompass improvements in infrastructure, digital integration, academic enrichment and school leadership, creating an environment where students can flourish. We’re proud to share that the initiatives currently touched the lives of 190,000 students across 480 government schools in 34 regions, 13 states in one union territory. Our rural education programs have empowered over 2,700 teachers and 490 headmasters with the skills and resources the need to inspire and educate the next-generation. In addition, financial year ’25 marked a significant milestone with the laying of the foundation stone for the SRF school. This new institution will address education needs of the community near the SRF Dahej facility, further extending our commitment to nurturing young minds. Together, we’re building a brighter future, one where every child has a chance to learn, grow and succeed. Concluding my speech, our balance sheet remains strong and with global interest rates trending downward, we expect the benefit of reduced borrowing costs in financial year ’26. We are committed to strategic investments for long-term growth. Reflecting on financial year ’25, I’m extremely proud of our team’s resilience and dedication. Despite uncertainty surrounding tariffs and the environment, we believe financial year ’26 will surpass financial year ’25 for the Chemicals business and the company overall. We are dedicated to driving growth and enhancing stakeholder value in the next fiscal year. While we have done exceptionally well in the 4th-quarter, I would like to remind our participants that we are a seasonal business. In general, our second-half performance is substantially better than our first-half and I expect that trend to continue this year as well. Thank you for your support and confidence in SRF. We look-forward to your continued support.
Questions and Answers:
Operator
Thank you. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone phone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we, we will wait for a moment while the question queue assembles.The first question is from the line of Arjun Khanna from Kotak Mutual Fund. Please go-ahead.
Arjun Khanna
Thank you for taking my question and congratulations on a great set of numbers. Sir, the first question is on the capex, sir. While we did indicate in the opening remarks that we have done debottlenecking, but if I look at CapEx this year, it’s been roughly crores. And if I look at ’23 almost INR2,800 crores and INR2,200 crores in FY ’24. So just wanted to understand, given that the capex is lower for ’25, are we going to see substantially higher capex in FY ’26? We have a number of projects such as Polymers, etc., coming online. So just wanted a sense on that front.
Rahul Jain
Thank you,, for your question. You are absolutely right. We had said this earlier as well that the capex for FY ’25 is going to be slightly lower. That’s something that has panned out. Although there have been a lot of debottlenecking projects, as we said in the initial positioning of this that there were a lot of bottlenecking projects that we have done this year. So to that extent, there is a lot of new capacity that have got created and added here.
From an FY ’26 perspective in our current estimates, we believe capex for FY ’26 will probably be in the range of INR2,200 crore crores. So that’s our current estimate of it. We have been judicious about capex going-forward. But to a certain extent, yes, the intensity of the capex will increase for FY ’26. I hope that answers it well.
Arjun Khanna
Sure. Thank you. Very helpful, sir. Secondly, sir, if one looks at the Specialty chemical side, while we did mention we are looking at overall chemical growth of 20%, if you could now that we are at the end-of-the year, give us a sense how did specialty chemicals do for FY ’25? And what would be the mix between pharma and agrochemical at this point in time? The second part to that question is, we have talked about intermediate prices improving. At the same time, we have talked about pricing pressure from China. So if you could clarify these points, sir. Thank you.
Rahul Jain
So just to get on the annual thing, last year, the sales for our chemicals business overall were roughly about INR6,300 crores. And on that side, roughly about INR3,700 crores were specialty Chemicals business and INR2,600 crores was fluorochemicals business. This year, roughly the sales are in the range of INR6,700 crore, out of which roughly about INR3,850 are in specialty chemicals business and 2,850 being the fluorochemicals business.
So share between them has remained in the range of, let’s say, 57% 58% for the specialty chemicals business and 20% to 43% for the fluorochemicals business. So that’s the kind of breakup. Now to answer your second part of the question in terms of saying that pricing pressure on through China and various other things, this is essentially also something that we saw in the first year of, let’s say, when — in the earlier part of the year, H1. To a certain extent that pricing pressure has come down a bit. We’ve seen both lower pricing pressure as well as better volume offtake coming through. Or again FY ’26 also, we believe that there will be a — there is a positive traction that we are seeing from agrochemical customers, while in some pockets there are probably slightly lower positions that are playing out, but we are fairly hopeful that 20% plus growth in the overall chemicals business should be achievable going-forward in specially on pharma. Share of pharma for roughly about 6% to 7% from a specialty chemical business perspective.
Arjun Khanna
Sure. Thank you. Just a clarification on the opening remarks, we mentioned we have done debottlenecking and possibly 30% increased capacity. That’s for the specialty side of it, fluorochemicals or should we read that INR6,700 crores of revenue potentially can have INR2,000 more crores of revenue if demand permits over a period of time?
Rahul Jain
Don’t know the math on that,. What it referred to was Specialty Chemicals business only rather than fluorochemicals. It was being talked about in the same way when you were talking about the Specialty chemicals business.
Arjun Khanna
Perfect. Thank you and wishing you all the best, sir.
Rahul Jain
Thank you. Got it,
Operator
Thank you. The next question is from the line of Naushit Chaudhary from Aditya Virla. Please go-ahead.
Naushad Chaudhary
Hi, thanks for the opportunity and congrats on a good set of numbers. One question on a fluoropolymer business, I just wanted you to touch upon this in terms of how this business is doing acceptance of our specialty polymer and how much capital so-far we have deployed yet? And how do you see this in next two, three years, how this business should look like?
Rahul Jain
So two, three questions going together,, let me try and-answer each one of them. How is this business doing? I think we have improved on the domestic side in the fluoropolymers business. You — there has been better intensity that we’ve seen on the fluoropolymer business on fine-cut and let’s say, the free flow grades of it. Our export seeding of the fluoropolymer business has also started and we are starting to see some traction on that side as well.
Like we said in the opening remarks, I think we will see a positive on the fluoropolymers business during FY ’26 coming through. And also from a futuristic perspective, we’ve already announced capex of roughly, I don’t remember INR550 crores or so in that range for three new fluoropolymers, PVDF, and SKL. Some of those will get commercialized and completed out during FY ’26. So from FY ’27 onwards, we should see more fluoropolymer sales coming through. I think those are the questions. If I missed out anything, please do repeat.
Naushad Chaudhary
No, no, that’s it. Thank you. That’s helpful.
Rahul Jain
Thank you. Thank you.
Operator
Thank you. The next question is from the line of Nitesh from Anand Rathi. Please go-ahead.
Nitesh Dhoot
Yeah. Thank you for taking my question and congratulations on a good set of numbers, sir. So my first question is on the India-UK FDA. If you could please throw some light from that,
Rahul Jain
I’m not able to hear you clearly.
Nitesh Dhoot
One second. So I hope it is better now.
Rahul Jain
Sure. Thank you.
Nitesh Dhoot
Yeah. So sir, my question was on the India-UK FTA. If you could please throw some light on what kind of benefits could accrue to us business-wise.,
Rahul Jain
To be frank about it, when we look at our European sales, sales to UK are very low. So I don’t think that there is a large positive or a negative impact in that line from the India-UK FDA.
Nitesh Dhoot
Sure. And so just one question on the mix of domestic and exports for the chemical segment.
Rahul Jain
Let me do that separately for the Fluorochemicals and the Specialty Chemicals business. Specialty Chemicals business, I would say roughly in the range of about 70%, 70% 71% is exports and the rest is domestic . For fluorochemicals, 60% — 60 domestic, right? So 60% to 40 is the domestic versus export.
Nitesh Dhoot
Great. Great, sir. Thank you so much for answering the questions. All the best.
Operator
Thank you. Thank you. The next question is from the line of Sanjesh Jain from ICICI Securities. Please go-ahead.
Sanjesh Jain
Good afternoon, sir. Thanks for taking my question. Hello? Thanks for the opportunity. Sir, first question on the refrigerant gas. What was the utilization last year now that we have started our AHF plan, we should be using 100% in FY ’26, will that be a fair assumption?
Rahul Jain
And the simple answer to that is yes. From an FY ’26 perspective, right?
Sanjesh Jain
Yeah.
Rahul Jain
From an overall FY ’25 perspective, we will probably — roughly in the range of about 70% because ’22 capacity utilization was slightly lower than what we had initially planned because of the?
Sanjesh Jain
Got it. And from the pricing perspective, now that we see the inventory level in US coming down, which adds to the demand, how should we see pricing for the HFC in FY ’26, should we hold-on to the pricing of FY ’25 exit?
Rahul Jain
Look, each gas will play-out differently to be verify between 32, 134A and 125, I think to a certain extent, 432, our pricing has to still play-out fully. Whatever we’ve seen as exit pricing in FY ’25, I think that should be — we should be able to sustain that and maybe slightly better on it going-forward from a 32 perspective. On 134A, I think it should remain flat to slight positive only. And 125 I think again should remain flat from where we have seen it exiting in FY ’25.
Sanjesh Jain
Very clear. Very clear. How should we see at R20 to now that there is a 50% cut starting from 1st Jan ’25, we should be using that remaining R32 in our PTFE plant. Have we started that?
Rahul Jain
No, no, R2 has always been new for the PTFE business. Sanjesh, there is no — as PTFE capacities grow-out as we see full utilization of PTFE capacity, our 22 — our 22 usage for PTFE is going to increase only. So there is no doubt on that. But today, I think pricing is pretty decent from a — from a refrigerant from a market’s perspective, we have seen slightly increase in pricing on the ’22 side as well. On ’22 utilization, we’ve seen — we will see obviously positive in terms of R22’s utilization, not just for P2FE, for other fluoropolymers that will come through over a period of time and for the specialty chemicals business also.
Sanjesh Jain
Very clear. One last question on the specialty side. When we speak of 20%, I assume that we are looking at 20% growth in specialty as well. Are we seeing this kind of order book growth coming in because BASF first results showed a quite muted volume growth, what they reported couple of weeks back. How does our order book look like?
Rahul Jain
Look, to a certain extent, when we are giving you a 20% guidance, we are — we have a fairly good confidence in terms of where the order book is. Now, if you ask me that do I have 100% visibility of the order book, I would probably say that the visibility is probably in the 70% to 80% range. There will be countermeasures that we will implement, but we have a fairly good sense of how that 20% number is going to be achieved going-forward, Sanjesh.
Sanjesh Jain
Very clear, sir. Thanks for answering all those questions and best of luck for the coming quarters.
Rahul Jain
Thank you.
Operator
Thank you. The next question is from the line of Madhav from Fidelity. Please go-ahead.
Madhav
Hi, good afternoon. Thank you so much for your time. First question on the webcast business. I think, sir, like you said, we’ve not seen the full benefit of R32 play-out yet. Is it fair understanding that in both the export and the domestic market for us, the R32 benefits will show-up more in FY ’26, especially exports where it seems like, I don’t know if there are certain contracts which reset over few months or a few quarters. So the full benefit, especially on export side reflects more in FY ’26. Is that the right way to think?
Rahul Jain
Where we would look at it, is that we will have a better volume utilization from an FY ’26 perspective given the fact that we should be able to produce more of 32 given HF has now that the issues with have now kind of got sorted-out. So that’s a positive. From a pricing perspective, we believe current pricing should sustain and probably slightly higher going-forward. But exact numbers is very difficult to be able to say. What I can only tell you is, let’s say, the exit rates for March ’25 were probably higher than what we saw as averages for the entire year.
Madhav
Yeah, definitely. But our export prices for RCT2 playing catch-up to our current domestic prices, like is that moving with a lag, the increase that we are seeing?
Rahul Jain
Again, there is a difference in seasonality — difference in seasonality between export volumes as well as domestic volumes. So will hopefully cater to the lag and I believe probably.
Madhav
Yeah, understood. Understood. And sir, the second question on the specialty chemical side, like from our six, seven AI launches which we are speaking about, could you just give us an update in terms of how many of them maybe they are already launched or will be launched in FY ’26 and how we could see ramp-up in the next one or two years from these newer AIs? Thank you.
Rahul Jain
Look, I don’t think that position has changed very well. So we have always said that FY ’26, we will see at least two to three more towards the H2 is when they will come through. We will give you an update on some of these as we start to see a pickup on volume. When we look at it from an FY ’25 perspective, the key AI still remains as P32 only, right? We have seen some new AI come through over the financial year. There have been some positive developments that have come through. It will — the ramp-up will continuously depend on the customer requirement going-forward. Some of these are products and as they launch in various geographies, we will start to see a pickup in volume of this. Exact timing of this is very difficult to be able to judge, but we are fairly confident that in H2, there will be some positive traction going-forward.
Madhav
Just on the capex of INR2200 crores, could you just split it into the different segments? And within chemicals, how much would go into spectrum versus fluoropolymers, et?,
Rahul Jain
I’ll have to come to come back to you separately on this, I will probably — see the way it is happening, is today what we are also implementing is specialty chemicals is fluorochemicals on the gases. We are also implementing the chloropolymer project on the chemical side. So those are the larger projects that have been implemented.
From a packaging film perspective, BOP2P as well as the capacitor growth line and the line are being implemented. So my sense is that from an FY ’26 perspective, this will probably be 65%, 70% on the chemical side and the balance will probably be the packaging film and technical textile. So that’s how the split should be, but I will leave out that number and come back to you.
Madhav
Got it. Perfect, sir. Thank you.
Operator
Thank you. The next question is from the line of Pankaj from Asset Managers. Please go-ahead.
Pankaj
Thank you. Yeah, thank you for the opportunity and congratulations on great set of results. Rather than quarterly, just wanted to get a sense on, how will the shape look like of the chemical business in next three years? This year, we entered at about INR6,700 crores of revenue. If you can just help us from a size and scale perspective, one on chemical and overall company, what is the medium-term thought process, Ashishi and? Thank you.,
Rahul Jain
Ashish was left. I am the only one answering questions. So I am to take all the brunt that you guys can throw at me. So thank you for that. In terms of the three-year share, from a chemical business perspective, again, I think 20% plus growth going-forward should we have a key positioning going from a chemicals business perspective.
So let’s say we ended-up with INR6700 crores of revenue. We will probably be, let’s say, INR11,000 crores of revenues plus in three years. Again, I think the state of that probably remains similar in the nature of specialty chemicals versus fluorochemicals. Fluorochemicals is also implementing large projects given fluoropolymers positioning as well as on the — on the new gene gases side. So in three years, I think some of these should have come up and become revenue hitting. So mix remaining the same. I think at 20% 25% growth, we should probably be hitting a INR12,000 crore number going-forward.
Pankaj
Okay, that’s great. And on the BOPP side and the technical textile, how will the Shape of the business look like in the next couple of years?
Rahul Jain
And then, from a packaging fill — or sorry, performance fills, I would also have to get my act right here, performance filling and foil business and the way we will look at it, Pankaj, is that there are new capacities. I think between PPPE as well as the CPP, I know aggregate capacity expansion of 3,000, 5,000. So roughly about 50,000 tons of 50,000, 55,000 tons of new capacity expansion happening.
Given a similar run-rate in terms of their, let’s say, asset turn, that is the addition that we are looking to get-in the Packaging film business. Obviously, when we are thinking about it, more value-added products, better realizations or high-end products, all of that will keep on taking better shape from a packaging filming business perspective. But maybe I can come back to you separately in terms of a three-year positioning of where this is likely to-end up at.
Pankaj
Great. Thank you and wish you all the best.
Operator
Thank you. Thank you. The next question is from the line of Rohit Nagraj from B&K Securities. Please go-ahead.
Rohit Nagraj
Yeah. Thanks for the opportunity and congrats on strong Q4 and FY ’25. Our first question is in terms of the EBIT margins that we have done for FY ’25, given that you have explicitly said that there was pricing pressure on the specialty chemicals front. So is it safe to assume that the margin expansion is predominantly from gas volume growth as well as the pricing increase that has happened during the course of the year? Thank you
Rahul Jain
No doubt on that. I would say from a Q4 versus Q4 perspective, we’ve seen margin expansion happen in the specialty chemicals business also. We have seen significant margin expansion happening in the fluorochemical side and the rest gas side also. So those are two positives. But when you think about it from an overall perspective, I think we had said between 25% to 26%, plus-minus 2% should be the range that we will continue to look at. I think that story remains pretty much intact.
Rohit Nagraj
Sure. That’s helpful. And second, just a minor question that the margins that we have reported for the chemicals business, about 25% EBIT margins for FY ’25, is it safe to assume that we will be able to at least maintain and better it in FY ’23, given that conditions probably will further improve from the industry perspective? Thank you.
Rahul Jain
Rohit, again, like I said, I think the story remains intact between that 25% 26%, plus-minus 2% even from an FY ’26 perspective with larger volumes will be the story that will play-out. Therefore, both from a revenue perspective and an overall volume perspective, we will start to see bigger positive going-forward in the chemicals business. And when you think about overall margins, I think even a, 25% 26% margin, EBIT margin with a large depreciation is a pretty decent number going-forward,. I think the targeting on that side remains in that range only.
Rohit Nagraj
Fair enough. Thanks a lot and all the best, sir.
Rahul Jain
Thank you.
Operator
Thank you. Thank you. The next question is from the line of Meet Vora from Emkay Global. Please go-ahead.
Meet Vora
Hi, thanks for taking my question. So we have mentioned in the PPT that India and Middle-East will drive future growth for refrigerant gases. So is it because that there is a baseline period in both these geographies and we’ll be pushing, say, more volumes in these markets to gain more quota, because I don’t think we are strategically moving away from US as a market. So just wanted to get your sense there.
Rahul Jain
So the way we look at it is that I think you are right in terms of understanding this, yes, there will be the quotak position that plays out in calendar ’24, ’25, ’26 in all of these two — in these two geographies, India and Middle-East as well. The position that we are saying is that we have the capability, the capacity for supplying to these markets and that’s what will play-out here. We are not strategically moving away from the US market, that is also the right comment.
The only point is that overall US market, while inventories are low today, then we will probably see some inventory filling that will happen going-forward. The other position also is that US by-law or by module portable will have a lower need and therefore, we will have to kind of balance it out in terms of how we are thinking about that market. Given where our capacities, I think we are fairly open to either export or sell-in the domestic market given where price positions are today moved.
Meet Vora
Understood, sir. Perfect. And just one more question. Just wanted to get your sense on H1 on a Y-o-Y — Y-o-Y basis. So would it be better given that now rev gas volumes will grow because of our EHF plant, which is there now in-place? And also do we expect chem to grow Y-o-Y in H1?
Rahul Jain
We are talking about H1 FY ’26,
Meet Vora
Yes. On a Y-o-Y basis.
Rahul Jain
So too early to comment on that, but thematically, we believe that volumes will do better, both for specialty Chemicals and for the fluorochemicals business. But I think thematically is what we can talk about rather than pure and exact number there are.
Meet Vora
Got it, sir. Thanks. That’s all from my side and best of luck.
Operator
Thank you. The next question is from the line of Vivek Rajamani from Morgan Stanley. Please go-ahead.
Vivek Rajamani
Hi, sir. Thank you for the presentation and congratulations on a very strong set of results. The question was on Specialty Chemicals, the improvement that you are going to see in fiscal ’26, would it be fair to say it’s going to be driven largely by increased volumes and cost efficiencies? Or do you think there could also be a positive mix change either from new products or some pricing improvement. I just wanted to get your thoughts on what’s driving the — what will be the biggest driver of the improvement in fiscal ’26?
Rahul Jain
Yeah. I think it is a combination of both rather than one or the other. We will probably see better volumes for some of the legacy products. Newer products that have started to ramp-up in FY ’25 should also see better volumes. So there is a volume positive that will come in the Specialty chemicals business. We are — during H1, we had also seen a lot of pricing pressure, while some of that we saw lower being lower in FY ‘2 — in let’s say, Q4 FY ’26 and FY ’25, sorry, we will probably start to see some of that positive coming through as well. Again, like I said in an answer to a previous question, I think the AI positions will also start to play-out during FY ’26 more towards H2.
Vivek Rajamani
Sure, sir. And just one clarification with respect to the improvement that you’re foreseeing in fiscal ’26 that already assumes the two, three new AIs, not from your perspective, but from the customer registration perspective, correct? Or do you think that would be a significant upside risk if some of those things fall into place?
Rahul Jain
Again, we are assuming some volumes on the AI side here. I can’t tell you exact numbers on it, but yes, there are some volumes that we are assuming. Some of these products have already been registered. It’s now a question of when the customer starts to launch them and provide more volumes into the market, which will depend on his own business plan. Based on which we will start to see volumes on that side.
Vivek Rajamani
Very clear. But at least fiscal ’26, you’ll be able to meet them with the existing capacities that you have in-place. That would be a fair statement, correct?
Rahul Jain
I don’t think capacity today is too much of a challenge as well.
Vivek Rajamani
Sure. Thank you, sir. Thank you so much and all the very best.
Rahul Jain
Thank you. Thank you.
Operator
Thank you. The next question is from the line of Keyur Pandia from ICICI Prudential Life Insurance. Please go-ahead.
Keyur Pandya
Thank you. Congratulations to the team for strong results. Sir, a question on the side. So the new R32 capacity. What is the utilization for full FY ’25? That is first question. And second is either because of — sorry?
Rahul Jain
The capacity utilization of HFCs is what you talked about for FY ’26.
Keyur Pandya
Yes, yes. The new R32 capacity or overall HFC also. So that is first question. And second, on the pricing side, so either because of the say news of upcoming newer supplies for R32 or a relatively weaker say summer season in India or for any other reason, are you seeing any signs of, say, prices coming down or any moderation? So second question on the pricing, that is it.
Rahul Jain
So from a capacity utilization perspective, I think given where positions were during FY ’25, I think some of that has got better significantly and therefore, we believe that during FY ’26 capacity utilization should go up very, very significantly. Maybe from a current 70% Utilization on an average to about 85%, 90% 95% utilization is where we should end-up being from an perspective. Again, on the pricing front of HFCs, even with new capacities that have been talked about, I think they don’t come in early part of the FY ’26, probably towards December is some people that talked about and those plants will also have to get stabilized. Also from an overall pricing perspective, I don’t see a big challenge or saying that there is a likely reduction — significant reduction in the pricing of HFC and more specifically 32 revenue. That doesn’t look like you.
Keyur Pandya
Okay, sir. Thanks a lot and all the best.
Rahul Jain
Thank you. Thank you.
Operator
Thank you. The next question is from the line of Abhijit Akela from Kotak Securities. Please go-ahead.
Abhijit Akela
Yeah, good afternoon. Thank you so much. So just on the comment regarding the fact that maybe 1H is expected to be a little bit softer than 2H, if I understood it correctly. So just I was hoping to get your perspective on what are the factors that sort of lead us to believe that this might be the trend?
Rahul Jain
I mean, Abhijit, you have to look at the historical trends on this. Go back to FY ’20, ’21, even probably other than FY ’23, where it was kind of flattish and seasonality does play-out a factor from our overall chemicals business and an overall business perspective also. So what we were tending to say here is that seasonality still remains that seasonality has not gone away.
We’ve always seen much higher sales in the fluorochemicals business happening towards Q4 and Q1, right? So that seasonality remains. Even when we think about the specialty chemicals business from procurement trends when we think about it from the past, we’ve seen always Q3 and Q4 to be higher than Q1 and Q2. So I think the reference here is reference point here is more towards the seasonality that we’ve seen in the business rather than anything else engines.
Abhijit Akela
Okay, okay. So just to clarify, in fiscal ’25, we saw a mix of about 42 to 50 years between 1H and 2H. So we can broadly go with a similar kind of trend for next year as well.
Rahul Jain
So, what I can tell you, Arijit, when you compare it with CPLOI corresponding period last year, you will see certain positive trends, but the H1, H2 positioning between, let’s say, let’s say, 60-40 or 65% 35, probably 55%, 45 remains overall.
Abhijit Akela
Got it. Thank you so much. And just one last thing if possible. Possible to give us some rough sense of how much was revenue from the new projects of PTFE and aluminum foil for the full-year?
Rahul Jain
I don’t have that number readily available. I’ll check and come back-in queue.
Abhijit Akela
Okay, sure. Thank you so much, sir. All the best.
Rahul Jain
Thank you. Thank you.
Operator
Thank you. The next question is from the line of Krishan Parwani from JM Financial. Please go-ahead.
Krishan Parwani
Yeah. Hi, Rahul jee. Thank you for the opportunity and congrats on a strong set of numbers. Firstly, just a clarification. So this INR2850 crores of fluorochemicals revenue, does that include the industrial chemical? And what would be the number?
Rahul Jain
No, I didn’t get the question. Could you repeat that please?
Krishan Parwani
So this INR2,50 crores of fluorochemicals revenue in FY ’25, does that include the industrial chemicals revenue also?
Rahul Jain
Sir, the FCB includes all industrial Chemicals, all of web gases, 22 HFCs and and CMS as well and to a certain extent as well. So just wanted to understand what was the industrial chemical revenue for the full-year. So I don’t give out breakups of each of those revenue positions because they are success and they are interlinked with each other. So this is all that you will get, Christian.
Krishan Parwani
No problem, because I think in your annual report you to give out. So I thought you might have it handy. No problem. We’ll wait for the annual report.
Rahul Jain
So to an extent we had to give out in the annual report as well. The reason for that also is because there is a certain requirement by-law to be able to give those out, right? And though those are also to a certain extent, I would say, are combined up in large numbers. So — but we don’t give out exact numbers here..
Krishan Parwani
No, no problem, no problem, sir. And secondly, from a two to three years outlook or you know, how much have we spent on new AI capacities? And when do you expect these capacity to be fully ramped-up? Just a three to four years outlook if you could expect these.
Rahul Jain
Look, as of now from an AI capacity perspective, there has been — what we are doing today is doing it from our — from our multiple clients. Various blocks have been created within those multiple clients to be able to manage those AI requirements. And we have a fair sense in terms of how those requirements will pan-out and we should be able to meet them up from our own — from our existing multipurpose plants from the agrochemical or the AI intermediate plants that we have kind of put up.
As we see larger demand, as we see higher volumes, as we see consistent, we will look to put up newer capacities on that side and obviously, those will get announced.
Krishan Parwani
Understood, sir. Thank you for answering my question. Wish you all the best, sir.
Operator
Thank you. Thank you. The next question is from the line of Dhruv from HDFC AMC. Please go-ahead.
Dhruv Muchhal
Yes, sir. Thank you so much. Sir, just on this US-China tariff issue, are you seeing any change in customer engagements for this reason or both positive?
Rahul Jain
We are seeing lots of changes when customer engagement grew, right? And that customer engagement changes on a daily basis. To date, there is 150% tariff, the next night there is 30% tariff. Actually, to be very frank about it, Dhruv, there is no clarity in terms of how these tariffs will pan-out. I think by end of June, early or mid of July is when all of these positions will kind of play-out in terms of what tariffs have been imposed on what entities.
Our belief today still remains that the tariffs that will come through on India also on India versus China, there will be a differential tariff. And as long as there is a differential tariff, we should be in good shape. That’s how we would probably benefit ourselves out in respect to these tariffs going-forward.
Dhruv Muchhal
No, I’m wondering our customers also thinking similarly and thinking of supply-chain changes in favor of India and you also? No, nothing.
Rahul Jain
There is a 90-day window, they will end-up saying that supply me as much as you can, right? So that 90-day window will also expire at a certain point in time. We have not seen a — due to tariffs a large change in happening in, let’s say, customer earlier.
Dhruv Muchhal
Got it. Perfect, sir. Thank you. That’s helpful. Thanks.
Operator
Thank you. Thank you. Next question is from the line of Archit Joshi from Nuvama Institutional Equities. Please go-ahead.
Archit Joshi
Hi,. Thanks a lot for the opportunity. Sir, just had one question rather a clarification from a comment that I’m reading from the PPT saying that innovators are expected to introduce more complex and downstream active ingredients. So I was just wondering how one should read this? Is this the global R&D spend spends of innovators are going up or these opportunities are by any chance presented to us in the form of any contract development opportunities? Thank you, sir.
Rahul Jain
Look, the theme I do you have is outsourcing as a key thematic from global majors, right? Now what is going to-end up happen what is — what will end-up happening is some of their existing products, some of their future products, they are saying manufacturing in Europe is becoming more difficult. And because of this, they are looking at outsourcing opportunities, which is a clear trend that we are seeing. Whether they are, let’s say from a — whether their overall R&D spend is going up or not, I really am unable to comment on that Archit?
Archit Joshi
Sure, got it. Thanks and all the best.
Operator
Thank you.Thank you. The next question is from the line of Jason Zones from IDBI Capital. Please go-ahead.
Jason Soans
Yeah, Rahul ji, thank you so much for taking my question. My first question, Rahulji, just pertains to when we look at it from a subsidiaries perspective, of course, we have the packaging films there. Now we have clocked in a loss of around 173 million there for ’25 million. Just wanted to know from an overall perspective going ’26 and ’27, is there a possibility that we can be profitable in that — in the subsidiaries business if I just take subsidiaries or the Packaging funds business?
Rahul Jain
And what you are doing, your is you are calculating it on a pattern Pat basis or or PBT basis?
Jason Soans
Yes, sir. So basically it’s a consol minus standalone.
Rahul Jain
Pat, profit-after-tax.
Jason Soans
That’s right. That’s right. Yes.
Rahul Jain
Let’s understand the reason for it. I think the — the way we look at it is largely it is Packaging films business. When we think about it from an overall basis, I think Hungary because of the fact that they were going through a tough time has ended-up being probably at a PAT loss. I think as Hungary improves, we should start to see positive PAT contribution from an overall — on an overall basis within, let’s say, FY ’26 itself. And the other one obviously is iTech, which is the aluminum front. So two of these, once they start to show a positive positioning, I think we will start to see a positive path between FY ’25 and FY ’26 when you compare standalone versus consolidated also. On the EBITDA side, largely positive going-forward as well. And I would say that for FY ’25 also, EBITDA was a large positive when we aggregate all of the subsidiary entities also.
Jason Soans
Okay, sure, sir. Thanks for that. Sir, my just next question is, what I understand, obviously, there is a consensus that probably is still on an improving trajectory or overall, it’s just kind of subdued environment there, but on an improving trajectory. Now you have mentioned in your PPD that you have seen good traction for your new products as well as certain key agrochemical intermediates. Now I just wanted to know from a directional sense, I mean, of course, there are so many intermediates in the market — I mean which on your product offerings. Just wanted to understand from vis-a-vis the competition, are we better at this? Do you think we can buck this trend and we can have better growth as compared to competition, especially for the spec chem business?
Rahul Jain
Look, I think both of positives and one negative probably, right? Given our R&D, given our practic, let’s say, relationships with global customers, given our current product profile, given the number of products that we are currently in stage of developing, I think the first element should pan-out positively in our favor.
The negative element of it also is that we are at, let’s say, almost INR4,000 crore turnover, right, and the 20% on INR4,000 crore also means, say, INR800 crores of additional revenue that we have to generate. So there is — there are positives around it and negatives. We will have to go through and understand how we make more positives than negatives.
Jason Soans
Sure, sir. And just finally, just wanted to ask, sir, I mean, let’s get spoken about Daimel, which is the pharma. Just wanted to understand not asking for an absolute value or something I understand, but how is the prospects for that looking? I’m sure it’s an integral part of your fluorochemical business. So just wanted to know-how was the prospects for this pharma or diamond looking ahead?
Rahul Jain
Two things that you would have to understand, 1345 is a high GWD product relative to 32, right? There is no timeline with respect to diamond or the or let’s say, the 134 pharma. Overall, I think from a — from perspective, we are roughly 180% market-share domestically from — for the as a product and. Going-forward, we believe that — so two positives. One, there is no timeline in terms of this coming down on an overall utilization perspective. The product in itself is also seeing growth going-forward.
So I think it should do well, that remain probably a smaller number from our overall chluorochemical space. So no new expansions can happen, but yes, capacity utilization of 100%, probably at 80% today to be achieved going-forward is certainly possible. Certain debottlenecking might happen over a period of time as we see more traction on that side, but it is still a product that is doing phenomenally well from our overall perspective.
Jason Soans
Okay. Okay. And just one thing.
Operator
Sorry to interrupt, sir, but I may I request you to.
Jason Soans
Yeah, sure, sure, sure. Thanks. Thanks for answering the question.
Rahul Jain
I think we will have to wind that, but one last question please.
Operator
Okay. So the next question is from the line of Anirud Shetty from Solidarity Advisors Private Limited. Please go-ahead.
Anirud Shetty
Thanks, but my question was answered early.
Rahul Jain
Thank you.
Operator
Thank you. Thank you very much. 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. Thank you very much for being on the call. We hope we have answered some of your questions, if not all, you are happy to connect for any additional questions that you have. Thank you and best of luck.
Operator
On behalf of SRF Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines