Transcript of Earnings Conference Call for Q4-FY26/FY26 attached.
CENTENKA · price
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Century Enka reported strong Q4 FY26 results with EBITDA margin expanding significantly to 11.46% (up 948 basis points YoY) driven by higher volumes (up 14% to 20,711 MT) and effective pass-through of rising raw material costs. For FY26, while revenue declined 15% to Rs. 1,705 crores, EBITDA grew 29% to Rs. 148 crores with PAT up 52% to Rs. 101 crores. Management guided for improved operating margin range of 7%-10% going forward, up from the earlier 6%-8% guidance. Key initiatives include Rs. 100 crore CAPEX for FY27 focused on Mother Yarn capacity expansion, value-added products, and renewable energy (increasing renewable power share from 36% to 48%). Polyester tire cord fabric approval has moved to Stage 2 with commercial sales expected in H2 FY27.
The stock appears well-positioned with margin improvement driven by cost reduction initiatives and value-added product focus. The Rs. 400+ crore cash pile and upgraded margin guidance are positives, though investors may watch for execution on the PTCF commercial ramp-up and monitoring of raw material volatility.