Morgan Stanley has maintained its underweight rating on SRF Limited with a target price of ₹2,175 per share after the company’s Q2FY26 results fell short of expectations. Core profit after tax (PAT) came in at ₹3.9 billion, up 93% year-on-year but down 10% sequentially, missing Morgan Stanley’s estimates by about 10%.
The brokerage said performance across segments was mixed — chemicals EBIT came in below estimates as strength in refrigerant gases was offset by continued weakness in specialty chemicals. The packaging films business also missed forecasts due to subdued market volumes and weaker demand from end-user industries.
Morgan Stanley noted that while the company’s long-term growth potential remains intact, near-term earnings could remain under pressure given volatility in specialty chemicals and limited pricing traction in packaging. The brokerage continues to prefer companies with a more diversified export mix and consistent cash generation.
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