Century Enka reports mixed Q2, H1 FY26 results amidst challenges

Century Enka Limited announced a decline in Q2 FY26 operating revenue to ₹409 crores, down 24% year-over-year but up 2% quarter-over-quarter. Profit after tax (PAT) rose 4% year-over-year to ₹22 crores, with a PAT margin of 5.46%. For the first half of FY26, operational revenue was ₹810 crores, a 24% decrease year-over-year, and net profit was ₹38 crores, down 17.5% year-over-year. Total volumes for H1 FY26 declined by 14% year-over-year to 34,992 metric tons.

The company's margins remained under pressure due to low-cost imports from China, particularly in commodity products, with import volumes in the yarn segment doubling year-over-year. Efforts are underway to address this through anti-dumping duties. Investments in value-added products, representing over 35% of the portfolio, are a key strategic focus, with approximately ₹50 crores invested over the past three years.

Century Enka is also developing a new polyester tyre cord fabric (PTCF) project with an estimated capital expenditure of approximately ₹100 crores. Commercial supplies from this project are expected to begin in Q4, targeting about 10% of the current industry demand. The company aims to increase renewable energy to meet 30-35% of its power requirements within one to two years.