Ester Industries Ltd

Financial performance

• Standalone total income: 347.7 crores in Q1 FY27, up 22% YoY.
• Standalone EBITDA: 40 crores; margin 11.5% (vs 11.2% in Q1 FY26).
• Standalone PAT: 14.5 crores; margin 4.2% (vs 3.4% in Q1 FY26).
• Consolidated total income: 441.9 crores in Q1 FY27, up 27.4% YoY.
• Consolidated EBITDA: 58.9 crores; margin 13.3% (vs 8.3% in Q1 FY26).
• Consolidated PAT: 18.6 crores; margin 4.2% (PAT moved to profit).
• Film segment revenue: 399.4 crores; EBIT 39.1 crores; EBIT margin 9.8%.
• Film volumes: 22,120 MT; rPET volumes: 1,394 MT; rPET revenue: 17.5 crores.
• Ester Filmtech: capacity utilization ~83%; standalone Filmsegment utilization 85%; consolidated 84%.

Segment and operating update

• VAS film volumes 6,368 MT; VAS share of film volumes ~29%.
• VAS mix target: 50–60% over the next 2–3 years.
• rPET capacity 28,000 MT (rated); rPET revenue 17.5 crores in Q1 FY27.
• Ester Filmtech sales volume 9,807 MT; revenue 159.6 crores; EBITDA 19.5 crores; PAT 4.7 crores.
• Consolidated EBITDA growth driven by film and higher VAS contributions.

Balance sheet and liquidity

• Gross debt: 720 crores; expected to reduce by 100 crores to 620 crores by year-end.
• Cash and cash equivalents: 235 crores.
• Mutual funds: ~60 crores; FDs: >160 crores.
• JV (ELITe) implications: 140 crores of liquidity earmarked for JV; ~100 crores sustainable liquidity post-JV.
• No major stand-alone capex in FY27; sustenance capex planned; ELITe capex via JV.

ELITe and future capex

• ELITe JV with Loop Industries; 50/50; land acquisition ongoing; FEED complete; detailed engineering awarded.
• CY2028 operational: textile-to-textile recycling facility using Loop depolymerization tech.
• LOI from leading global brand for up to 15,000 MT/year Loop PET fibre-grade resin for ELITe.
• Projected export orientation; capacity secured via LOIs; US/EU demand signals supporting premium pricing.

Guidance and Q&A highlights

• Guidance on FY27/FY28 revenue/EBITDA not disclosed; expects sustainable growth.
• Q1FY27: more than 100% of rated rPET capacity by exit quarter of this financial year (capacity-utilization guidance).
• Target: INR 2,000–2,200 crores revenue over next 2–3 years with existing facilities.
• Specialty Polymers: targeting ~20% CAGR over 3–5 years; near-term flat to single-digit growth this year.
• Industry capacity ~1.35 million MT; utilization ~85%; demand-side strength supports continued exports.

Q&A takeaways

• Q: Can run-rate be maintained? A: Expect sustainable earnings for 6–8 quarters.
• Q: rPET volumes; target utilization by year-end? A: >100% rated capacity by exit quarter.
• Q: 2–3 year revenue target? A: INR 2,000–2,200 crores achievable with higher price realizations and better mix.
• Q: ELITe and LOIs; competition in recycling? A: technology differentiates, exporting volumes; LOIs already in place.
• Q: Debt repayment target this year? A: ~INR 100 crores; ELITe debt via JV, not consolidated.

Cancellation of promoter transfer

• Cancellation of proposed inter-se transfer within Ester Industries' promoter group.
• Proposed acquisition was 3,797,468 equity shares representing 3.64% voting rights.
• Transaction was to be from Mr. Arvind Singhania to the acquirer promoter group.
• Cancellation announced due to unforeseen circumstances; no terms disclosed.
• Disclosure filed under Regulation 10(5) of SEBI Takeover Regulations dated 14 August 2026.
• Acquirer promoter group member Ayush Vardhan Singhania provided the cancellation notice.
• Date of update: 20 August 2026; records with exchanges.

Earnings call recording

• Ester Industries' earnings call audio recording for quarter ended 30 June 2026 available.
• Link to the audio recording provided for investors and analysts.

Promoter shareholding update

• Ayush Vardhan Singhania, promoter group, to acquire Ester shares via inter-se transfer; advance intimation filed under Regulation 10.

Issue Overview

• Type: Preferential issue of convertible warrants.
• Issue size revised to ₹165.25 crore; ₹9.74 crore not received due to lapse.
• Main objectives: investment in ELIT JV and general corporate purposes.

Utilisation of Proceeds

• Utilisation during quarter: no utilization for any object.
• ELIT object: beginning unutilised ₹25.30 cr; end ₹25.30 cr.
• Unutilised amount for ELIT: ₹124.95 cr.
• GCP object: unutilised ₹15.00 cr.
• Total unutilised proceeds: ₹139.95 cr.
• Unutilised funds deployed in fixed deposits; balance ₹0.20 cr in PI account.
• Total FD investments: ₹139.95 cr; maturities span Sep 2026–May 2027.

Governance and Compliance

• Approvals: not explicitly stated; no comments on approvals.
• No material events affecting viability reported.

GCP

• GCP not applicable.