Indorama Ventures Public Company Limited (IVL) has delivered a striking first-quarter 2026 performance, marking what it describes as a decisive inflection point after the prolonged cyclical downturn from 2023 to 2025. 

 

The rebound underscores the impact of its IVL 2.0 strategy as global chemical markets begin to firm.

 

Consolidated revenue rose 7% quarter-on-quarter (QoQ) to THB 109.3 billion, while reported EBITDA jumped 89% QoQ to THB 8.0 billion. The company attributed the surge to stronger volumes, improved margins, and a more favorable product mix, though partially offset by currency headwinds. 

 

It also highlighted its “Radical Clarity” reporting approach, which incorporates inventory fluctuations to present a more transparent view of performance.

 

Operating cash flow reached THB 8.8 billion, supported by an EBITDA conversion rate of 109%. Working capital discipline reduced THB 3.2 billion during the quarter despite rising sales and higher crude prices, helping improve the net debt-to-equity ratio to 1.73x from 1.83x in the prior quarter.

 

Aloke Lohia, Group CEO of Indorama Ventures, commented, “1Q26 represents a clear inflection point. Our recovery is powered by both improving external conditions and the deliberate actions taken under IVL 2.0. 

 

"Through Radical Clarity and disciplined execution, we are entering the upcycle in a stronger position. We expect continued sequential earnings improvement, accelerated deleveraging toward our 3x Net Debt/EBITDA target, and solid progress on our 2028 ambitions.”

 

 

Combined PET (CPET): EBITDA surged 134% QoQ to THB 5.5 billion, driven by normalization after planned turnarounds, stronger industry spreads, and structural cost advantages from shale-to-PET integration in the Americas.

 

Indovida (Packaging): EBITDA rose 10% QoQ to THB 743 million, supported by improving demand in key growth markets. The proposed merger with EPL Limited is expected to strengthen its long-term packaging footprint.

 

Indovinya (Surfactants): EBITDA declined 7% QoQ to THB 1.7 billion, impacted by South American market softness and a winter freeze event in the U.S. The company expects structural recovery as supply chain disruptions offset low-cost Asian imports.

 

Fibers: EBITDA increased 70% QoQ to THB 879 million, reflecting disciplined output management and a shift toward cash flow preservation amid softer mobility and lifestyle demand.

 

The company credited its performance to four key competitive moats: a global local-for-local model, shale-to-PET integration, diversified end markets, and strengthened Sales & Operations Execution (S&OE) discipline. These, combined with the IVL 2.0 transformation, have improved its ability to capture import parity pricing and strengthen cash generation.

 

Management noted early signs of structural improvement across the industry, including slowing PET capacity expansion and rationalization in the ethylene value chain. Geopolitical disruptions are also contributing to tighter supply conditions.

 

Looking ahead, Indorama Ventures expects continued momentum into Q2, supported by stronger pricing, higher utilization of advantaged assets, and further margin expansion as industry conditions improve.