Ester Industries Q2 FY27 results: net profit ₹7.84 crore vs ₹15.78 crore loss, revenue up 25.3%

How did Ester Industries perform in Q2 FY27?

Ester Industries reported consolidated revenue of ₹443.76 crore in Q2 FY27, up 25.3% from ₹354.19 crore in Q2 FY26 and ₹11.60 crore from ₹432.16 crore in Q1 FY27. Total income was ₹448.99 crore, up 25.7% year on year and ₹7.03 crore from the previous quarter.

EBITDA was ₹40.54 crore, compared with ₹15.02 crore a year earlier and ₹49.58 crore in Q1 FY27. The EBITDA margin was 9.1%, up 4.9 percentage points year on year but down 2.4 percentage points sequentially. The company reported a net profit of ₹7.84 crore, versus a net loss of ₹15.78 crore a year earlier and net profit of ₹18.62 crore in Q1 FY27.

Basic EPS was ₹0.75, compared with a loss per share of ₹1.62 in Q2 FY26 and ₹1.84 in Q1 FY27. On a standalone basis, revenue was ₹360.11 crore and net profit was ₹6.09 crore, against ₹4.81 crore of standalone net profit in the year-ago period.

What changed in Ester Industries' costs and profit?

Cost of materials was ₹296.10 crore in Q2 FY27, up ₹53.89 crore from ₹242.21 crore a year earlier. Other expenses increased by ₹13.39 crore to ₹91.66 crore, while employee cost rose by ₹3.25 crore to ₹22.77 crore and depreciation increased by ₹0.66 crore to ₹18 crore. Finance costs were ₹17.19 crore, down ₹0.04 crore from ₹17.23 crore.

Other income rose by ₹2.18 crore to ₹5.23 crore. The company recorded an exceptional charge of ₹0.70 crore, compared with ₹0.74 crore in Q2 FY26. Tax was ₹2.03 crore, against ₹1.45 crore in the year-ago quarter, when the reported figure was a tax credit. Total expenses rose by ₹64.67 crore to ₹438.41 crore.

The company said higher sales volumes, improved realisations, a higher contribution from value-added products and improved capacity utilisation drove the operating improvement. It also said crude-oil supply disruptions and price fluctuations caused by the war in West Asia resulted in higher shipping costs and longer transit times, adversely affecting the working-capital cycle.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue was ₹875.92 crore, up 26.5% from ₹692.39 crore in H1 FY26. Total income rose 26.5% to ₹890.95 crore from ₹704.09 crore, while EBITDA increased to ₹40.54 crore for the quarter from ₹15.02 crore in the year-ago period.

H1 FY27 profit before tax was ₹33.41 crore, compared with a loss of ₹21.04 crore in H1 FY26. Net profit was ₹26.46 crore against a net loss of ₹22.93 crore, and basic EPS was ₹2.57 compared with a loss per share of ₹2.36. The company said the half-year improvement was driven by growth in sales in both volume and value terms in rPET and films.

What do the balance sheet and cash flow show?

As of 30 September 2026, total assets were ₹1,846.36 crore, compared with ₹1,673.86 crore at 31 March 2026. Total equity was ₹887.63 crore against ₹782.73 crore, while borrowings increased from ₹729.01 crore to ₹748.77 crore. Cash was ₹32.25 crore compared with ₹1.17 crore at the previous balance-sheet date.

Inventories rose to ₹245.17 crore from ₹208.71 crore, trade receivables to ₹264.31 crore from ₹184.94 crore, and trade payables to ₹101.11 crore from ₹66.53 crore. H1 FY27 operating cash flow was ₹15.57 crore, compared with ₹25.68 crore in H1 FY26. Investing cash flow was negative ₹48.44 crore against negative ₹77.47 crore, while financing cash flow was ₹63.95 crore against ₹65.43 crore.

The company’s FY27 term-debt repayment target was approximately ₹100 crore, with ₹53.5 crore repaid in the first half. Management said net debt/EBITDA was 3.2-3.5x against a 2-2.5x target after working capital rose ₹66.7 crore in H1.

How has Ester Industries done over the last 8 quarters?

Revenue rose year on year in each of the last three quarters. It reached ₹443.76 crore in Q2 FY27, above ₹432.16 crore in Q1 FY27 and the earlier low of ₹319.26 crore in Q4 FY25. The latest quarter was the highest revenue level in the reported series.

Net profit moved from a net loss of ₹15.78 crore in Q2 FY26 to net profit of ₹7.84 crore in Q2 FY27. The reported peak was net profit of ₹24.82 crore in Q3 FY25, while the low was a net loss of ₹7.16 crore in Q1 FY26. EBITDA margin reached 17.2% in Q3 FY25, fell to 4.2% in Q2 FY26, and was 9.1% in Q2 FY27.

The latest direction was mixed: revenue rose to ₹443.76 crore from ₹432.16 crore in the previous quarter, but net profit fell from ₹18.62 crore to ₹7.84 crore and the EBITDA margin declined from 11.5% to 9.1%.

Which businesses drove the quarter?

Polyester chips and film revenue was ₹414.49 crore in Q2 FY27, up 39.6% from ₹296.82 crore in the year-ago quarter. Segment EBIT was ₹34.5 crore, compared with a loss of ₹6.15 crore, and the reported EBIT margin was 8.3%. The company attributed the growth to higher sales volumes, improved realisations linked to feedstock prices, and a higher contribution from value-added and speciality films.

Speciality polymers revenue was ₹29.27 crore, down 49.0% from ₹57.37 crore in Q2 FY26. Segment EBIT was ₹9.93 crore, compared with ₹21.24 crore, while the reported EBIT margin was 33.9%. The company said sales volume was 711 MT against 1,161 MT and that one marquee product experienced demand erosion.

What else did the company announce?

The board approved the un-audited standalone and consolidated financial results for the quarter and half-year ended 30 September 2026 on 3 November 2026. The statutory auditors issued limited-review reports, and the company filed an investor presentation alongside the results.

A CRISIL monitoring-agency report filed on 4 November 2026 said there was no deviation from the stated objects of the preferential issue of fully convertible warrants and no major deviation from earlier reports. The revised issue size was ₹165.25 crore, and ₹132.85 crore of proceeds remained unutilised. The filing did not report a dividend or a new appointment.

What did Ester Industries' management say?

Management said value-added and speciality films were 26% of Q2 volume and that the company targets approximately 35% by Q4 FY27 and 50-60% over the next two to three years. It also set an internal sustainable film EBITDA-margin target of 15%, contingent on reaching the 50-60% speciality-film mix.

Management expects H2 FY27 film performance to be similar to or slightly better than H1 FY27, while speciality-polymer performance is expected to be slightly better as new products mature. A large part of the speciality-polymer recovery is expected in Q4 FY27 and into FY28, and the company maintained its approximately 25% revenue CAGR target over the next three to five years from FY27.

Management said Ester Filmtech had been profitable every quarter since Q4 FY26, with H1 capacity utilisation at 85.3%. It cited specialty-polymer demand erosion, working-capital build, net debt/EBITDA above the 2-2.5x target, execution dependencies and possible customer-approval delays as risks. No analyst questions were recorded in the supplied earnings-call document.

How did Ester Industries shares react?

After the filing appeared, the stock was down 1.4% after five minutes, 1.4% after 15 minutes and 2.0% after 30 minutes. On the reaction day, it closed down 1.5% from the previous close of ₹89.30, while the stock was at ₹90.37 when the filing appeared.

By the next day’s close, the stock was down 0.1% from its pre-results close. The Packaging industry median rose 0.5% on the reaction day and 1.8% by the next day’s close, while the Nifty Microcap 250 rose 0.3% and 2.4%, respectively. Ester Industries therefore underperformed the industry by 2.0 percentage points on the reaction day and 1.9 percentage points by the next day’s close.

Earlier results-day reactions were mixed: the stock rose 5.4% on 11 August 2026 and 3.6% on 13 May 2026, but fell 7.7% on 30 July 2025 and 6.0% on 5 February 2025. No five-day or one-month reaction was available.

How did other Packaging companies do?

Thirty-two Packaging companies were compared for the quarter as of 6 November 2026, and their median revenue growth was 20.2%. Ester Industries’ revenue growth was higher than that of 22 peers that grew more slowly, while 10 peers grew faster than the company.

Nineteen of the peers reported higher profit, out of 32 companies for which profit was compared. The company’s Q2 FY27 revenue growth was 25.3%, while its consolidated net profit was ₹7.84 crore.