Ester Industries LimitedChemicalsESTER
Q1 FY27 concall · earnings callEster Industries Limited
The quarter was driven by a strong rebound in the BOPET film business due to improved industry pricing and capacity utilization, leading to a significant turnaround in consolidated profitability.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Consolidated Total Income | ₹441.9 Cr | 27.4% | |
| Consolidated EBITDA | ₹58.9 Cr | 103.4% | |
| Consolidated EBITDA Margin | 13.3% | — | |
| Consolidated PAT | ₹18.6 Cr | — | |
| Consolidated Film Volumes | 22,120 metric tons | 2.7% | |
| VAS Volume | 6,368 metric tons | 23% | |
| VAS Contribution to Film Volumes | 29% | — | |
| rPET Volumes | 1,394 metric tons | 19% |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹345.58 Cr+29.1% YoY+4.4% QoQ | ₹24.82 CrTurned profitable YoY+721.9% QoQ | ₹2.64Turned positive YoY+725% QoQ |
| Q2 FY25 | ₹331.16 Cr+26.7% YoY+15.7% QoQ | ₹3.02 CrTurned profitable YoYTurned profitable QoQ | ₹0.32Turned positive YoYTurned positive QoQ |
| Q1 FY25 | ₹286.15 Cr+11.1% YoY+3.4% QoQ | ₹-16.10 CrLoss narrowed YoYLoss narrowed QoQ | ₹-1.71Loss/share narrowed YoYLoss/share narrowed QoQ |
| Q4 FY24 | ₹276.73 Cr-6.1% YoY+3.4% QoQ | ₹-23.72 CrLoss widened YoYLoss narrowed QoQ | ₹-2.83Loss/share widened YoYLoss/share narrowed QoQ |
| Q3 FY24 | ₹267.76 Cr+38.9% YoY+2.4% QoQ | ₹-44.82 CrLoss widened YoYLoss widened QoQ | ₹-5.37Loss/share widened YoYLoss/share widened QoQ |
TL;DR
- Consolidated profitability turned around sharply with PAT of INR 18.6 crores versus a loss last year.
- Polyester film segment revenue grew ~38% on better realizations and a 23% jump in value-added sales (VAS).
- Specialty Polymers saw margin expansion to 45.3% despite lower volumes.
- Management is confident favorable industry supply-demand dynamics will sustain for 6-8 quarters.
Said on the call
“We are very positive that for next 6 quarters to 8 quarters, the global and domestic supply-demand balance is going to hold.”
From the Q&A
| Topic | What management said |
|---|---|
| Other Income | Management stated other income was high due to one-off gains from treasury (INR 3 crores), interest on FDs (INR 3.5 crores), and a forex gain (INR 1 crore), and is not sustainable at this level quarter-on-quarter. |
| Sustainability of Performance | Confidence expressed that the current favorable industry dynamics (stable global prices, restricted trade flows, demand exceeding capacity additions) should sustain earnings for the next 6 to 8 quarters. |
| Debt Repayment | A target of INR 100 crore debt repayment for the year was stated, aiming to reduce gross debt from INR 722 crores to INR 620 crores, while INR 140 crore of current liquidity is earmarked for the ELITe JV. |
| rPET Volumes | Management clarified that a sequential decline in external rPET sales was temporary, driven by higher internal consumption for packaging films, with a rebound expected in Q3 and Q4. |
| Specialty Polymer Margins | The 45.3% EBIT margin in Specialty Polymers is expected to normalize as higher-volume, mid-margin VAP products gain share, but absolute EBITDA/EBIT should grow due to improved operating leverage. |
| ELITe JV Competition | On ELITe, management highlighted technology differentiation (ability to process blended textile waste) and strong customer offtake commitments (Nike, a global sports brand) as competitive advantages. |
| Forward Guidance | Management declined to give specific FY27/28 revenue or EBITDA guidance, citing a focus on sustainable growth, but reiterated the target for revenue to reach INR 2,000-2,200 crores in 2-3 years. |
| Capacity Utilization Outlook | Capacity utilization for Q2 is looking better than Q1, with expectations to hit more than 100% of rated rPET capacity by the exit quarter of FY27. |
Guidance
- Target proportion of VAS products at about 50% to 60% over the next 2 to 3 years
- Targeting growth at a CAGR of 20% over the next 3 to 5 years in the Specialty Polymer segment
- ELITe facility is targeted to become operational in CY 2028
- Expect to recover revenue growth in Specialty Polymers by the end of this financial year
Source
Summary written from the transcript filed by Ester Industries Limited for the call held on 18 Aug 2026; published 24 Aug 2026, 13:51 IST.
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