Ester Industries Ltd has delivered a strong financial performance in the second quarter of FY27, with consolidated EBITDA soaring 160% year-on-year to Rs 45.1 crore and total income climbing 25.7% to Rs 449 crore, signalling a sharp recovery in operating performance.

 

The company's EBITDA margin expanded significantly to 10% in Q2FY27 from 4.9% in the corresponding quarter last year, an improvement of 510 basis points. Profit after tax (PAT) also swung into positive territory at Rs 7.8 crore, against a loss of Rs 15.8 crore in Q2FY26.

 

The strong quarterly performance was supported by higher realisations, increased throughput, an improving operating environment and a favourable product mix, particularly a higher contribution from value-added products in the Films segment.

 

The momentum extended into the first half of FY27. Consolidated revenue rose 26.5% year-on-year to Rs 891 crore, while EBITDA more than doubled, jumping 124.6% to Rs 104 crore. EBITDA margin improved 510 basis points to 11.7%, compared with 6.6% in H1FY26. PAT stood at Rs 26.5 crore, against a loss of Rs 22.9 crore in the year-ago period.

 

Arvind Singhania, Chairman, Ester Industries said: "Improvement witnessed in Q1FY27 continued during Q2FY27 with improving operating environment, higher realizations, increased throughput and a favorable product mix."

 

The company's improved performance reflects stronger operating conditions in the BOPET Film industry, with disruptions linked to US tariffs during FY26 largely behind the industry.

 

However, fresh geopolitical challenges are emerging. Disruptions in crude oil supplies and price volatility triggered by the war in West Asia have pushed up shipping costs and extended transit times, putting pressure on the company's working capital cycle.

 

The Specialty Polymers segment presented a mixed picture. Sales volume declined to 711 MT in Q2FY27 from 1,161 MT in the corresponding quarter last year. Despite the fall in volumes, the segment maintained a healthy EBIT margin of 33.9%.

 

Demand erosion in one of the segment's marquee products has weighed on sales. However, the company expects its strong product pipeline and anticipated customer approval for a new product, following marginal capital expenditure in the near future, to partially offset the lost sales volumes and margins.

 

On a standalone basis, Ester Industries reported total income of Rs 365.8 crore in Q2FY27, up 38.9% from Rs 263.3 crore a year earlier.

 

EBITDA, including non-operating income, increased 103.8% to Rs 28.6 crore, compared with Rs 14 crore in Q2FY26. EBITDA margin improved to 7.8% from 5.3%, while PAT turned positive at Rs 6.1 crore against a loss of Rs 4.8 crore.

 

For H1FY27, standalone total income grew 30.1% to Rs 713.5 crore. EBITDA rose 49.2% to Rs 68.6 crore, while PAT surged to Rs 20.6 crore from Rs 4.8 crore in the corresponding period last year.

 

The latest results underscore a significant improvement in Ester Industries' profitability, with stronger margins and a return to profitability at the consolidated level. However, geopolitical uncertainty, elevated logistics costs and volume pressures in parts of the Specialty Polymers business remain key factors to watch.