ESTERBSEEster Industries LtdMediumNeutral
Announced Thu, 21 May · 11:00 IST

Ester Industries Limited Q4FY26 Earning Call Transcript

Mgmt Guided Margin ImprovementInvestor Communications View source PDF

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AI summary

Ester Industries Limited reported Q4FY26 results with consolidated total income of INR345.1 crores (7.2% YoY growth). The BOPET film segment showed strong recovery with Q4 EBIT margins expanding 440 bps to 13%, driven by improved global pricing and antidumping duties on Chinese imports. Specialty Polymers delivered 21% volume growth with INR179.3 crores revenue and healthy 32.7% EBIT margins. The rPET business scaled rapidly with 258% YoY volume growth to 5,325 metric tons. The ELITe joint venture for chemical recycling remains on track with operations expected to commence by Q4 calendar 2028. Management raised INR165.25 crores via share warrants, with total debt at INR730 crores and planned capex of INR70 crores for FY27.

Likely market impact

The company is emerging from a challenging cycle with improving margins driven by favorable trade dynamics and higher VA spreads (INR30-35/kg). Management expects sustained margin improvement in FY27 and beyond, with focus on increasing value-added specialty products from 25% to 60%+ of film sales. The ELITe project offers significant long-term growth potential but major financial benefits are not expected before FY30.