Capex Announcement
Updates dailyPIP-2: Near-term Margin Pressure, Long-term Value Creator SRF's Rs. 180 Cr PIP-2 capex will add Rs. 360-450 Cr annual revenue at full capacity (13-17% group growth by FY27-28). However, FY26-27 will see 150-250 bps margin compression during ramp-up despite +Rs. 30-50 Cr EBITDA contribution. By FY27-28, operating EBITDA reaches +Rs. 110-130 Cr as utilization normalizes. The 35-40% EBITDA margin profile of pharma intermediates justifies capex, but execution risks—longer ramp-up, pricing deflation, and leadership transition—warrant monitoring. Strategically sound; operationally demanding.
PIP-2: Near-term Margin Pressure, Long-term Value Creator SRF's Rs. 180 Cr PIP-2 capex will add Rs. 360-450 Cr annual revenue at full capacity (13-17% group growth by FY27-28). However, FY26-27 will see 150-250 bps margin compression during ramp-up despite +Rs. 30-50 Cr EBITDA contribution. By FY27-28, operating EBITDA reaches +Rs. 110-130 Cr as utilization normalizes. The 35-40% EBITDA margin profile of pharma intermediates justifies capex, but execution risks—longer ramp-up, pricing deflation, and leadership transition—warrant monitoring. Strategically sound; operationally demanding.
PIP-2: Near-term Margin Pressure, Long-term Value Creator SRF's Rs. 180 Cr PIP-2 capex will add Rs. 360-450 Cr annual revenue at full capacity (13-17% group growth by FY27-28). However, FY26-27 will see 150-250 bps margin compression during ramp-up despite +Rs. 30-50 Cr EBITDA contribution. By FY27-28, operating EBITDA reaches +Rs. 110-130 Cr as utilization normalizes. The 35-40% EBITDA margin profile of pharma intermediates justifies capex, but execution risks—longer ramp-up, pricing deflation, and leadership transition—warrant monitoring. Strategically sound; operationally demanding.
PIP-2: Near-term Margin Pressure, Long-term Value Creator SRF's Rs. 180 Cr PIP-2 capex will add Rs. 360-450 Cr annual revenue at full capacity (13-17% group growth by FY27-28). However, FY26-27 will see 150-250 bps margin compression during ramp-up despite +Rs. 30-50 Cr EBITDA contribution. By FY27-28, operating EBITDA reaches +Rs. 110-130 Cr as utilization normalizes. The 35-40% EBITDA margin profile of pharma intermediates justifies capex, but execution risks—longer ramp-up, pricing deflation, and leadership transition—warrant monitoring. Strategically sound; operationally demanding.
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