SRF has been downgraded by ICICI Securities from ADD to HOLD, with a target price of INR 2,250, down from INR 2,480. This revision is due to challenges in SRF's chemicals business, such as increased competition from China, weak demand from agrochemical innovators, delays in new product launches, and declining prices in specialty chemicals and hydrofluorocarbons (HFCs).

Despite these challenges, SRF expects revenue growth in the second half of FY25, supported by a strong order book for Q4FY25 in specialty chemicals. The company believes that margins have reached their lowest point and anticipates improvements through technological advancements and increased production volumes. SRF has also announced a capital expenditure plan of INR 11 billion for hydrofluoroolefins (HFO).

The EPS estimates for FY25 and FY26 have been reduced by 18% and 17%, respectively, reflecting a slower-than-expected recovery in the chemicals sector.