The brokerage said that the partnership between SRF and Chemours for the supply of fluoropolymers can be meaningful. The agreement may supplement Chemours’ global operations through potential outsourcing to SRF.
UBS added that with ready fluoropolymers capacity, SRF is expected to see a major revenue uptick starting FY27E.Citi has also retained a ‘Sell’ rating on SRF, with a slightly higher price target of ₹2,725.
The company recently announced a strategic multi-year agreement with Chemours for the manufacturing of advanced fluoropolymers and fluoroelastomers. These products will be manufactured at SRF’s existing facility in Dahej.SRF had commissioned a 5 ktpa PTFE (Polytetrafluoroethylene) facility at Dahej in October 2023, and is currently in the process of ramping it up, operating at 50-60% utilisation. The Chemours agreement will be executed as part of this facility.
Although the specific products to be manufactured under the deal haven’t been disclosed, PTFE imports into the US are exempt from reciprocal tariffs, potentially offering an additional advantage.
Chemours, in its announcement, said the agreement with SRF strengthens its global supply chain footprint, enhances operational flexibility, and provides increased capacity for fluoropolymers and fluoroelastomers, materials critical across sectors such as semiconductors, automotive, aerospace, chemical processing, and oil & gas.
With the added capacity from SRF, Chemours aims to ensure a more reliable supply for customers globally, the company said.
Shares of SRF ended with gains of 0.35% at ₹2,940. The stock has risen 33% so far in 2025.
