Century Enka Ltd

AGM Details

• AGM held on 20 August 2026 at 2:30 PM IST via VC/OAVM.
• Record date for voting: 13 August 2026.
• Total shareholders on record date: 39,275.
• Shareholders attending via VC: Promoter Group 6, Public 61.

Key Resolutions

• Item 1: Adopt standalone and consolidated financial statements for year ended 31 March 2026.
• Item 2: Declare dividend on equity shares for year ended 31 March 2026.
• Item 3: Appoint Singhi & Co as Statutory Auditor for 5 consecutive years.
• Item 4: Re-appoint Rajashree Birla as Director on rotation.
• Item 5: Re-appoint Suresh Sodani as MD & CEO for 2 years from 1 April 2027.
• Item 6: Ratify remuneration of Cost Auditors for FY 2027.

Voting Results

• Item 1: Passed with about 99.994% in favour.
• Item 2: Passed with about 99.994% in favour.
• Item 3: Passed with about 99.9975% in favour.
• Item 4: Passed with about 96.2058% in favour.
• Item 5: Passed with about 99.5277% in favour.
• Item 6: Passed with about 99.9912% in favour.

Dividend

• Dividend declared/approved for FY2026; per-share amount not disclosed.

Directors & Auditors

• Singhi & Co appointed Statutory Auditor for 5-year term (to 65th AGM).
• Rajashree Birla re-appointed as Director (retiring by rotation).
• Suresh Sodani re-appointed as MD & CEO for 2-year term.
• Cost Auditors' remuneration ratified for FY 2027.

AGM details

• 60th AGM held on 20 August 2026 at 2:30 PM via Video Conferencing/OAVM.
• Meeting commenced at 2:30 PM and concluded at 4:05 PM IST.

Key resolutions

• Adopt audited standalone and consolidated financial statements for FY2026 (Ordinary).
• Declare dividend on equity shares for FY2026 (Ordinary).
• Appoint Singhi & Co as statutory auditor for five-year term (Ordinary).
• Re-appoint Rajashree Birla as Non-Executive Director (retiring by rotation) (Special).
• Re-appoint Suresh Sodani as MD & CEO for two years (Apr 2027–Mar 2029) (Ordinary).
• Ratify remuneration of cost auditors for FY2027 (Ordinary).

Voting outcome

• All resolutions passed with requisite majority (remote and AGM voting).

ESG rating update

• Crisil ESG Ratings voluntarily assigned FY2026 scores: ESG 58 and Core ESG 61 to Century Enka.
• Century Enka did not engage Crisil; rating rationale issued independently from public data.
• Rating was directly intimated to stock exchanges and is publicly available.

Financial Performance

• Revenue for the quarter was Rs 554 crore, up 38% YoY and 15% QoQ.
• EBITDA stood at Rs 86 crore, up 331% YoY and 55% QoQ; margin 15.46%.
• Profit after tax was Rs 62 crore; PAT margin 11.13%; YoY growth 301%.
• Volume total 19,199 MT; tyre cord fabric Rs 306 crore; filament yarn Rs 230 crore.
• Inventory gain of Rs 46.24 crore included in quarterly results.
• Renewable power share exceeded 40% in the quarter; Bharuch expansion due H2 FY27.
• PTCF approval progress; commercial sales expected in H2 FY27.

Operating Update

• Tyre cord demand robust; GST cuts supported demand; commercial sales expected H2 FY27.
• Filament yarn demand healthy; higher-value products improving margins.
• Imports of cheap Chinese filament yarn persist; anti-dumping duty not notified by DGTR.
• New value-added product investments planned to improve margins.
• Export exposure modest; focus remains on domestic market.
• Caprolactam price volatility; normalization anticipated as prices stabilize.
• Renewable power expansion to raise share towards ~50% after Bharuch commissioning.

Capex and Capacity

• Total capacity 92,000 MTPA; utilization typically 85–90% across products.
• PTCF plant: commercial sales expected in H2 FY27.
• Capex guidance: over Rs 100 crore in the current year.
• Renewable power project: Bharuch 10.5 MW; equity investment ~Rs 8.5 crore.
• NFY value-added capex to improve margins; not add capacity.
• Safety enhancements post February 2025 Bharuch incident; cost uptake ongoing.
• Capex for mother yarn capacity expansion: commissioning in FY28.

IRR and Funding

• Minimum IRR target for new projects: 12–15%.
• Birla Cellulose intercompany transactions: none.
• Raw-material inventory: 25–30 days imported; 10–15 days domestic.
• IRR hurdle rate for projects: 12–15%.

Outlook and Risks

• Margins to normalize over next few quarters; normalized range 7–10%.
• Growth and margins linked to market conditions; no fixed guidance.
• Renewable-power expansion expected to reduce power costs over time.

Meeting Details

• Date and time: 29 July 2026 at 12:00 IST.
• Type and mode: earnings conference call with investors; audio recording.
• Organiser: Century Enka Limited.
• Key company participants: VP Legal & Company Secretary.
• Purpose: discuss Q1 FY27 earnings.
• Recording availability: audio recording uploaded on company website.

Business Overview

• Core nylon products: NFY and NTCF; forayed into PTCF.
• Facilities in Pune and Bharuch; total capacity ~92,000 MTPA.

Operational Highlights

• Q1-FY27 revenue INR 5,543 Mn; YoY +38.1%.
• EBITDA INR 857 Mn; margin 15.46%.
• PAT INR 617 Mn; margin 11.13%.
• Demand robust for Tyre Cord Fabric post-GST cuts.
• PTCF approvals progressing; commercial sales expected H2-FY27.
• New Mother Yarn and VAP investments planned.
• Imports from China persisted at low prices; ADD not notified; DGTR findings favorable.
• Renewable power availability improved margins; petro energy costs rising.
• NFY domestic market share 24%.
• Net worth INR 14,959 Mn; cash INR 67 Mn; borrowings INR 199 Mn.

Financial Performance

• Q1-FY27 Revenue 5,543 Mn; YoY +38.1%.
• Q1-FY27 EBITDA 857 Mn; Margin 15.46%.
• Q1-FY27 PAT 617 Mn; Margin 11.13%.
• FY26 margins: EBITDA 8.67%; PAT 5.91%.

Capital & Liquidity

• Borrowings: non-current 60 Mn; current 139 Mn; total 199 Mn.
• Cash & cash equivalents: INR 67 Mn (FY26).
• Net worth INR 14,959 Mn (FY26).

Strategy & Outlook

• PTCF commercialization expected in H2-FY27.
• VAP and Mother Yarn investments to expand margins.
• NFY domestic market share ~24%.

Risks & Mitigation

• Geopolitical developments, volatile crude prices, inflation could impact demand.
• Mitigation: pass-through pricing and productivity gains.

Governance & Shareholding

• Promoter stake 24.86%; Public 62.27% as of 30 Jun 2026.

Financial highlights

• Standalone Total Income: 56,278 lacs; Revenue from Operations: 55,429 lacs; Other Income: 849.
• Standalone PAT: 6,131 lacs; PBT: 7,934 lacs; Current Tax: 1,877; Deferred tax: (74).
• Standalone Total Comprehensive Income: 6,280 lacs; EPS: 28.06.
• Consolidated PAT: 6,170 lacs; Consolidated PBT: 7,973 lacs; EPS: 28.24; Total Income: 56,278 lacs.
• Single operating segment: Synthetic Yarn.
• Unaudited results; Board-approved; limited review by auditors.
• Labour Codes: Rs 186 lacs recognised as exceptional item in FY2026.