SRF has been given a 'REDUCE' rating by Prabhudas Lilladher, with a target price of Rs 2,036.

In Q2FY25, the chemicals segment saw an 8% decline in revenue compared to the previous quarter, mainly due to a slowdown in agrochemical demand. The fluorochemicals division faced challenges with lower export prices, but the domestic refrigerant gases market remained resilient.

The packaging film business is expected to experience a decline in EBIT margins due to a demand-supply imbalance in the BOPET film segment. Despite an increase in packaging revenue driven by higher domestic prices, the textiles sector struggled with margin pressures from cheaper imports, despite strong sales volumes in belting fabrics.

Going forward, while the domestic refrigerants market is expected to remain strong, there may be margin impacts in the near term due to weak agrochemical demand and oversupply from Chinese competitors.