Ester Industries has reported a strong first quarter for FY27, with consolidated revenue rising 27.4% year-on-year to Rs.441.9 crore and EBITDA more than doubling to Rs.58.9 crore, up 103.4% from Rs.28.9 crore in Q1 FY26.

 

The company’s consolidated EBITDA margin expanded sharply to 13.3% from 8.3% a year earlier, a 500-basis-point improvement. Profit after tax (PAT) turned positive at Rs.18.6 crore, compared with a loss of Rs.7.2 crore in the corresponding quarter last year.

 

On a standalone basis, total income increased 22% year-on-year to Rs.347.7 crore, while EBITDA rose 25.2% to Rs.40 crore. Standalone PAT climbed 50.5% to Rs.14.5 crore.

 

Commenting on the performance, Arvind Singhania, Chairman, Ester Industries said: "Q1 FY27 marked a strong quarter of execution for Ester, with an improving operating environment, higher realizations, increased throughput and a favorable product mix supporting a significant financial turnaround. 

 

"Consolidated Total Income increased 27.4% Y-o-Y to 441.9 crore, while EBITDA more than doubled, rising 103.4% Y-o-Y to 58.9 crore. EBITDA margin expanded significantly to 13.3% from 8.35% in Q1 FY26, reflecting improved operating performance and better business mix resulting from higher contribution of Value-Added products within Film segment and better realizations across product portfolio. 

 

"PAT turned positive at 18.6 crore, compared with a loss of 7.2 crore in the corresponding quarter last year. Our Q1 FY27 performance reflects the strength of our strategy, the resilience of our business and our relentless focus. The strength and breadth of this performance gives us confidence in the momentum ahead."

 

China has adopted "anti-involution" policy. This policy is a government campaign to stop destructive price wars, overcapacity, and profitless competition. Key components of this policy include restricting predatory pricing, encouraging industry consolidation, and phasing out outdated production facilities. 

 

"As a result, surplus at predatory prices coming out of China has significantly reduced leading to improve margin profile.

 

"The operating environment for the BOPET Film industry continued to improve during Q1 FY27, with the US tariff- related disruptions and import from China witnessed in FY26, largely behind us. Simultaneously, the Plastic Waste Management Rules (PWMR) and the increasing requirement for post-consumer recycled (PCR) content continue to provide structural demand opportunities for rPET and recycled-content films.

 

Against this backdrop, Ester continues to strategically strengthen its Film portfolio by increasing the contribution of Value-Added and Specialty products. This approach is aimed at improving realizations, enhancing product mix and reducing earnings volatility arising from industry-wide cyclicity caused by periodic demand-supply imbalances," hd added.

 

Looking ahead, he said, "we remain confident about Ester’s medium to long-term growth prospects, supported by improving industry conditions, favourable regulatory tailwinds and its continued focus on premium and Value-Added products."

 

Ester’s Polyester Films business remained the key growth driver during the quarter. Consolidated capacity utilisation increased to 84% in Q1 FY27 from 82% in Q1 FY26, supported by higher production at Ester Filmtech.

 

Film sales volume rose 2.7% year-on-year to 22,120 MT from 21,531 MT, while film revenue jumped 37% to Rs.399.5 crore, aided by stronger realisations and a higher contribution from Value-Added Films.

 

The company continued to increase its focus on Value-Added and Specialty (VAS) products. VAS volumes reached 6,368 MT, accounting for 29% of total film sales, compared with 5,180 MT a year earlier. This represents a 23% year-on-year increase.

 

The rPET business also recorded strong growth, with sales volume rising 19% to 1,394 MT. Revenue from rPET increased 24% year-on-year to Rs.17.5 crore.

 

The Specialty Polymers segment faced lower volumes during the quarter. Sales volume fell 24% year-on-year to 725 MT from 954 MT, while revenue declined 32% to Rs.32.7 crore from Rs.48.1 crore.

 

However, the segment delivered a sharp improvement in profitability, with EBIT margin rising to 45.3% from 31.7%, driven by a better product mix.

 

Ester said its ELITe project has secured a Letter of Intent from a leading global sports and athletic brand for Loop PET Fiber Grade resin.

 

Under the multi-year framework, the customer has committed to an offtake of up to 15,000 MT per annum from ELITe’s upcoming Gujarat facility. With a significant portion of the planned capacity committed before commercial start-up, the company said the agreement provides visibility for the joint venture’s recycled-product platform and highlights growing demand for sustainable, value-added products.

 

Ester said it remains focused on improving capacity utilisation, operational efficiency and its portfolio of advanced specialty products, with the aim of strengthening profitability and reducing earnings volatility across industry cycles.