Ester Industries

Ester Industries has launched a new subsidiary in the United States with capital of up to $1.5 million. The subsidiary will focus on marketing activities and product enhancement operations in the US market.

Ester Industries Limited submitted its monitoring agency report for the quarter ended June 30, 2025, regarding the utilization of proceeds from its preferential issue of convertible warrants worth Rs 174.99 crore. The report was prepared by CRISIL Ratings Limited and shows that out of the total issue size, Rs 16.80 crore has been utilized for investment in joint venture company Ester Loop Infinite Technologies Private Limited, while Rs 158.19 crore remains unutilized. The issue was conducted from November 5-12, 2024, with Rs 89.24 crore yet to be received from warrant holders upon conversion by May 13, 2026. The unutilized funds of Rs 68.95 crore are deployed in fixed deposits with Bank of India, earning returns between 4.50% to 6.25%. The proceeds are allocated for investment in the joint venture (Rs 159.99 crore) and general corporate purposes (Rs 15.00 crore). The report indicates no deviations from stated objectives and no delays in implementation.

Ester Industries delivered strong quarterly results with consolidated revenue growing 19% year-on-year and EBITDA margin improving by 240 basis points to 8.35%. The company's recycled PET revenue surged dramatically from INR 0.5 crores to INR 14 crores. Polyester Films business showed robust performance with 22.57% volume growth and capacity utilization improving to 82% from 64%. The segment recorded sales of 21,531 metric tons with revenue increasing 20.7% to INR 276.07 crores. Value-added products now represent 24% of total segmental volume, growing 37% year-on-year. Specialty Polymers business recorded 4% volume growth with 954 metric tons sold, though EBIT margins normalized to 30-35% from an exceptionally high 43% in the previous year. Ester Filmtech showed improvement with capacity utilization at 72% versus 49% previously, and volume growth of 23%. The company unveiled a refreshed logo and is progressing with its 50-50 joint venture with Loop Industries. Additional recycled PET capacity of 20,000 tons per annum in Hyderabad is expected to commence commercial production by September 2025. Management expressed confidence in maintaining growth momentum across both business segments despite challenges from foreign exchange fluctuations and potential US tariff impacts.