Indo Rama Synthetics Q2 FY27 results: net profit ₹74.08 crore vs ₹24.55 crore, revenue up 9.8%

How did Indo Rama Synthetics perform in Q2 FY27?

Consolidated revenue for the July–September 2026 quarter was ₹1,341 crore, up 9.8% from ₹1,221 crore in Q2 FY26 and 43.1% from ₹936.64 crore in the previous quarter. Total income was ₹1,344.04 crore, against ₹1,222.35 crore a year earlier and ₹940.2 crore in Q1 FY27.

EBITDA rose to ₹111.75 crore from ₹68.39 crore in Q2 FY26, while the margin widened to 8.3% from 5.6%. Sequentially, EBITDA increased from ₹101.57 crore but the margin narrowed from 10.8%. Profit before tax was ₹73.86 crore against ₹24.55 crore a year earlier and ₹63.74 crore in the previous quarter.

Net profit for the quarter was ₹74.08 crore, compared with ₹24.55 crore in Q2 FY26 and ₹63.74 crore in Q1 FY27. Basic EPS was ₹2.84 against ₹0.94 a year earlier and ₹2.44 in the previous quarter. On a standalone basis, revenue was ₹1,248.33 crore, profit before tax was ₹55.05 crore and net profit was ₹55.05 crore.

What changed in Indo Rama Synthetics' costs and profit?

Total expenses rose to ₹1,270.18 crore from ₹1,197.8 crore in Q2 FY26, an increase of ₹72.38 crore, or 6.0%. Cost of materials consumed increased by ₹13.01 crore, or 1.4%, to ₹944.32 crore, while employee cost fell by ₹0.85 crore, or 2.6%, to ₹31.53 crore.

Finance costs declined by ₹4.58 crore, or 13.6%, to ₹28.99 crore and other expenses fell by ₹19.98 crore, or 11.1%, to ₹159.76 crore. Depreciation was ₹12.30 crore, up ₹0.32 crore, or 2.7%. Other income rose by ₹1.69 crore, or 98.8%, to ₹3.40 crore. There was no exceptional item in the quarter.

Tax moved from no tax in the year-ago quarter to ₹0.22 crore of tax credit in Q2 FY27. Against the previous quarter, total expenses rose ₹393.72 crore, or 44.9%, mainly on higher cost of materials, which increased ₹359.71 crore, or 61.5%, while the EBITDA margin fell 2.5 percentage points to 8.3%.

How did the first half of FY27 go?

For the first half of FY27, consolidated revenue was ₹2,277.28 crore, down 9.9% from ₹2,526.35 crore in H1 FY26. Total income was ₹2,284.24 crore against ₹2,530.91 crore, a fall of 9.7%.

Profit before tax rose 78.0% to ₹137.6 crore from ₹77.3 crore, while net profit increased 78.3% to ₹137.82 crore from ₹77.3 crore. Basic EPS for the half was ₹5.28, up from ₹2.96 in H1 FY26.

What do the balance sheet and cash flow show?

As at 30 September 2026, total assets were ₹3,131.68 crore against ₹3,244.09 crore at 31 March 2026, and total equity was ₹656.99 crore against ₹519.17 crore. Borrowings fell to ₹860.13 crore from ₹1,131.6 crore, while cash was ₹6.82 crore against ₹16.82 crore.

Inventories rose to ₹690.81 crore from ₹666.86 crore, trade receivables fell to ₹103.06 crore from ₹243.32 crore, and trade payables were ₹1,462.03 crore against ₹1,450.59 crore. In the first half, operating cash flow was ₹328.46 crore against ₹91.46 crore in H1 FY26, investing cash flow was negative ₹6.24 crore against negative ₹5.33 crore, and financing cash flow was negative ₹332.22 crore against negative ₹106.18 crore.

How has Indo Rama Synthetics done over the last 8 quarters?

Revenue in the last eight quarters peaked at ₹1,340.64 crore in Q2 FY27 and bottomed at ₹936.64 crore in Q1 FY27, the quarter before. The series shows a fall from ₹1,305.71 crore in Q1 FY26 through ₹1,220.64 crore in Q2 FY26, ₹1,182.05 crore in Q3 FY26 and ₹1,201.66 crore in Q4 FY26, before the drop to ₹936.64 crore in Q1 FY27.

Profit rose year on year in each of the last three quarters. Net profit bottomed at ₹8.78 crore in Q3 FY26 and has since moved to ₹64.13 crore in Q4 FY26, ₹63.74 crore in Q1 FY27 and ₹74.08 crore in Q2 FY27. The EBITDA margin was lowest at 4.3% in Q3 FY26 and reached its highest at 10.8% in Q1 FY27, before easing to 8.3%.

What else did the company announce?

On 16 October 2026, the board approved an expansion plan of approximately ₹200 crore in Indo Rama Synthetics and its wholly owned material subsidiary, Indorama Ventures Yarns Private Limited. The capex is for speciality filament and speciality fibre production at the Butibori plant in Nagpur, Maharashtra, with an estimated commercial operation date in the next 12–18 months.

The filing said the projects would be financed through a term loan for the same, with a mix of internal accrual. The board also approved the un-audited standalone and consolidated financial results for the second quarter and half-year ended 30 September 2026, along with the auditors' limited review reports.

What did Indo Rama Synthetics' management say?

Management said the H1 FY27 EBITDA margin of 9.9% was expected to be maintained over the next two quarters, with double-digit margins targeted for FY28-FY29. The chairman and managing director said: "Yes, EBITDA margins of last 6 months were 9.9% and we hope that yes it will be maintained in the next two quarters. We don't see any big change."

Management identified risks including the West Asia conflict and Strait of Hormuz disruption affecting feedstock supply, freight and insurance, volatility in crude oil, PTA and MEG prices and exchange rates, execution and ramp-up risk for the speciality expansion, and dependence on trade-agreement benefits remaining subject to final terms and implementation.

How did Indo Rama Synthetics shares react?

The stock was up 2.9% within five minutes of the filing appearing in the market and was up 3.6% by the close of the reaction day from its pre-results close of ₹93.6. By the next day's close it was down 2.0% from that close, and the cumulative move five sessions later was down 19.9%.

How did other Other Textile Products companies do?

Sixty-one Other Textile Products companies filed for the quarter, with a median revenue growth of 24.1%. Of these, 18 peers grew slower than Indo Rama Synthetics and 43 grew faster than the company. Forty-three of the 64 peers compared on profit reported higher profit.