Ester Industries sees Q2 FY'26 revenue growth despite margin pressures

Ester Industries Limited announced consolidated revenue of INR357 crores for Q2 FY'26, a 7% year-on-year increase, driven by higher volumes in polyester films and specialty polymers. Despite this growth, domestic margins faced pressure from heavy imports and U.S. trade tariffs, impacting profitability. The company reported a consolidated capacity utilization of 79%, with Khatima at 75% and Hyderabad at 85%.

The specialty polymers segment delivered robust performance with a 51% volume growth and a 39% revenue increase year-on-year, reaching 1,161 metric tons. EBIT for this segment rose by 45% to INR21.24 crores, with margins improving to 37.03%. The polyester films segment saw a 2% marginal revenue growth, with rPET sales volume surging by 219% and film sales by 9%.

EBITDA for the quarter stood at INR17.33 crores, a 59.7% decrease over the previous year, with an EBITDA margin of 4.85%. This was primarily due to adverse impacts from exchange fluctuation and mark-to-market losses on foreign currency loans. The company is actively pursuing an anti-dumping duty on polyester film imports and is progressing with its 50-50 joint venture, Ester Loop Infinite Technologies Private Limited, for a chemical recycling project.