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    Ester Industries Q1 FY27 earnings call

    ESTER
    Capital Goods·18 Aug 2026
    Management Summary

    Ester Industries Limited reported a strong Q1 FY27, with consolidated total income growing 27.4% YoY to INR441.9 crores and EBITDA more than doubling to INR58.9 crores. Profitability saw significant improvement across all segments, with consolidated PAT turning positive at INR18.6 crores. The company highlighted favorable industry dynamics for BOPET films, increasing contribution from value-added products, and progress on its ELITe chemical recycling platform, despite a sequential decline in rPET external sales and lower Specialty Polymers volumes this quarter.

    Highlights

    5

    • Consolidated total income increased 27.4% YoY to INR441.9 crores, reflecting strong performance across segments.

    • Consolidated EBITDA surged 103.4% YoY to INR58.9 crores, with EBITDA margin expanding significantly to 13.3% from 8.3% in Q1 FY26.

    • Consolidated PAT turned positive at INR18.6 crores, a substantial improvement from a loss of INR7.2 crores in the prior year.

    • Specialty Polymers segment demonstrated strong profitability, with EBIT margin increasing meaningfully from 31.7% to 45.3%.

    • Value-Added Specialty (VAS) films volume grew 23% YoY to 6,368 metric tons, increasing its contribution to total film volumes to approximately 29% from 24% a year ago.

    Concerns

    2

    • Specialty Polymers sales volume declined to 725 metric tons in Q1 FY27 from 954 metric tons in Q1 FY26, primarily due to demand pressure on one high-margin product.

    • rPET volumes declined sequentially due to a temporary slowdown in external sales, although internal consumption for packaging films increased.

    Key financials

    Single quarter

    05 metrics
    1. 01Consolidated Total Income₹441.9 Cr+27.4%YoY
    2. 02Consolidated EBITDA₹58.9 Cr+103.4%YoY
    3. 03Consolidated EBITDA Margin13.3%
    4. 04Consolidated PAT₹18.6 Cr
    5. 05Consolidated PAT Margin4.2%

    Segment breakdown

    Polyester Film (Consolidated)
    ₹399.4 Cr Revenue₹39.1 Cr EBIT9.8% EBIT Margin22,120 metric tons Volumes
    Specialty Polymers
    ₹32.7 Cr Revenue725 metric tons Sales Volume₹14.8 Cr EBIT45.3% EBIT Margin
    rPET
    ₹17.5 Cr Revenue1,394 metric tons Volumes
    Ester Filmtech
    ₹159.6 Cr Total Income9,807 metric tons Sales Volume₹19.5 Cr EBITDA12.2% EBITDA Margin₹4.7 Cr PAT
    List

    Capital allocation

    4
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Gross ₹722 crores

    M&A

    ELITe (JV with Loop Industries)

    joint venture · integrated

    Liquidity

    Cash ₹235 crores

    Current cash and cash balance is INR235 crores. Total cash available in mutual funds is around INR60 crores and FD is >INR160 crores. Sustainable liquidity is ~INR100 crores after JV investment.

    Guidance & targets

    11
    CategoryTargetPriority
    Product Mix
    VAS products contribution to total film volumes
    50-60%
    		High
    Product Mix
    VAS product contribution
    35%
    		Medium
    Specialty Polymers
    Revenue growth recovery
    Recovered
    		Medium
    Specialty Polymers
    CAGR
    20%
    		High
    Specialty Polymers
    Growth this FY
    Flat or single-digit
    		High
    Specialty Polymers
    Margins this FY
    Match or clock single-digit growth
    		Medium
    ELITe Project
    Operational status
    Operational
    		High
    ELITe Project
    Land acquisition
    Conclude
    		High
    rPET
    Rated capacity utilization
    >100%
    		High
    Overall Revenue
    Revenue target
    INR2,000-2,200 crores
    		High
    Rating
    Rating review completion
    Completed
    		High

    What to watch in Q2 FY27

    5

    rPET external sales volume recovery

    Oct-Dec quarter (Q3 FY27)
    CurrentDeclined sequentially
    TargetLarger rPET volumes sold externally

    Why it matters

    Recovery of external rPET sales is crucial for overall rPET segment growth and profitability, as internal consumption currently masks full potential.

    But we see that this situation should change in the -- in this quarter towards -- in September of this quarter, and this trend will be more visible in the quarter of October to December, wherein you will see a much larger rPET volumes being sold externally.

    Risks & concerns

    2
    RiskSeverity

    Specialty Polymers Volume Decline

    Lower sales volume (725 MT vs 954 MT YoY) and revenue (INR32.7 cr vs INR48.1 cr YoY) in Specialty Polymers due to demand pressure on one high-margin product, though profitability improved. — Management acknowledged

    medium

    rPET Sequential Volume Decline

    Sequential decline in rPET external sales volumes is temporary, attributed to increased internal consumption for packaging films, with recovery expected by Oct-Dec quarter. — Management downplayed

    low

    Q&A highlights

    8

    “Yes. So, as you must have seen in the financial statements, there is an other income component. Other than that, I think the industry structure is quite favourable to us on the BOPET film industry side. We are seeing very stable and reasonably priced global markets. We are seeing that there are enough opportunities to place volume profitably in India as well as across the world. And we are also seeing opportunities to be at a sustained higher volumes compared to our past quarters because of the current supply-demand balance in the industry. So, all this give us confidence that we should have sustainable good earnings going forward, not only for the next 3 quarters, but I would go on to say, for next 6 to 8 quarters.”

    Management confirms an 'other income component' but expresses high confidence in sustained good earnings for 6-8 quarters due to favorable industry structure and demand-supply balance.

    asked by Shlok Patel

    3 min read6 chapters

    Detailed Narrative

    01

    Strong Q1 FY27 Performance Across Segments

    Ester Industries reported a robust Q1 FY27, with consolidated total income increasing 27.4% YoY to INR441.9 crores. This was driven by a 103.4% YoY surge in consolidated EBITDA to INR58.9 crores, leading to an EBITDA margin expansion from 8.3% to 13.3%. The company also turned profitable at the consolidated PAT level, reporting INR18.6 crores compared to a loss of INR7.2 crores in the prior year, with all businesses contributing meaningfully to the operating profit.

    02

    BOPET Film Segment Driven by Favorable Dynamics

    The BOPET film industry experienced improved operating conditions in Q1 FY27, with global prices stabilizing and US trade tariffs moderating. This enabled Ester's consolidated film segment revenue to grow approximately 38% YoY to INR399.5 crores, with EBIT improving significantly to INR39.1 crores from INR6.9 crores in Q1 FY26. The EBIT margin for the segment expanded to 9.8% from 2.4%, supported by an improvement in realizations and product mix. Consolidated capacity utilization for the film segment improved to 84% compared with 82% in Q1 FY26.

    03

    Growth in Value-Added and Recycled Products

    The company saw a 23% YoY increase in VAS films volume to 6,368 metric tons, with its contribution to total film volumes rising to approximately 29% from 24% a year ago. Management targets this proportion to reach 50-60% over the next 2-3 years. In the rPET business, volumes grew 19% YoY to 1,394 metric tons, generating INR17.5 crores in revenue, up 24% YoY. The company is confident in achieving over 100% of its rated rPET capacity utilization by the exit quarter of the current financial year.

    04

    Specialty Polymers Segment Shows Margin Strength Despite Volume Dip

    While the Specialty Polymers segment experienced a decline in sales volume to 725 metric tons (from 954 metric tons in Q1 FY26) and revenue to INR32.7 crores (from INR48.1 crores), its profitability significantly improved. The EBIT margin for Specialty Polymers expanded from 31.7% to an impressive 45.3% due to a better product mix. The company targets a 20% CAGR for this segment over the next 3-5 years, expecting revenue growth recovery by the end of the current financial year, with absolute EBITDA and EBIT growing significantly from next financial year.

    05

    ELITe JV Progresses Towards CY2028 Commissioning

    The 50-50 joint venture, ELITe, focused on chemical recycling of polyester textile waste, is progressing as planned. The FEED study has been completed, and land acquisition is expected to conclude within the next two months. The facility is targeted to be operational in CY 2028, converting 100% textile waste into virgin-quality monomers. The JV has secured commitments from anchor customers like Nike and another global sports brand for up to 15,000 metric tons per year of Loop PET fibre-grade resin, covering a substantial portion of planned capacity.

    06

    Debt Reduction and Liquidity Management

    As of June 30, 2026, the company's gross total debt stood at INR722 crores. Management aims to reduce this by approximately INR100 crores during the current fiscal year, bringing the gross debt down to INR620 crores. The company reported liquidity of INR236 crores, including around INR60 crores in mutual funds and over INR160 crores in fixed deposits. The additional debt for the ELITe JV will be raised in the JV company and not consolidated with Ester's balance sheet, with sustainable liquidity expected to be around INR100 crores after JV investments.

    This is an AI-generated summary of a publicly available earnings call transcript.