Century Enka achieved significant progress in its environmental sustainability targets for FY26, reporting that 57% of its total energy consumption was derived from renewable sources. The nylon and man-made fibre manufacturer also recorded a 48% reduction in CO2 emissions intensity and a 42% reduction in total water consumption against its FY2019 baseline. These metrics are critical for investors evaluating the company’s alignment with long-term climate goals and regulatory compliance under Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The disclosures were made in the company’s Business Responsibility and Sustainability Report (BRSR), which covers the period from April 1, 2025, to March 31, 2026. M/s BDO India Services Private Limited provided limited assurance on the BRSR Core and non-Core indicators, verifying the reliability of key data points including employee counts, turnover rates, air emissions, and Scope 3 greenhouse gas emissions. The report is prepared on a standalone basis for Century Enka Limited.

Environmental Performance

Century Enka’s transition to cleaner energy sources involved expanding the use of biomass as a renewable fuel and commissioning solar power installations with a capacity of 1 MW. The company’s captive hybrid power setup (solar and wind) contributed to meeting approximately 57% of its total energy requirements through renewable sources during the reporting period.

Water management remained a priority, with the company achieving zero wastewater discharge from its manufacturing operations. At the Bharuch site, the installation of 28 rainwater recharge wells facilitated groundwater recharge. Total water withdrawal stood at 6,46,601 kilolitres, with consumption matching this figure due to the zero liquid discharge mechanism.

Operational and Social Metrics

The company operates three plants and four offices across India, serving markets in 19 states and six countries. Exports contributed 4.26% of total turnover. The workforce comprised 496 employees and 2,702 workers at the end of FY26. Among permanent employees, 96% were male and 4% were female. The Board of Directors included two women, representing 33% of the board.

Safety performance showed mixed results. While the Lost Time Injury Frequency Rate (LTIFR) for employees remained at 0, the LTIFR for workers increased to 0.31 from 0.15 in the previous year. Total recordable work-related injuries for workers rose to 25 from 8 in FY25. The company attributed these incidents to human error despite established safety protocols and ISO 45001:2018 certification.

Governance and Assurance

Mr. Suresh Sodani, Managing Director and Chief Executive Officer, oversees sustainability-related decision-making. The company reported no fines, penalties, or disciplinary actions related to corruption or bribery during the financial year. There were no complaints received regarding conflict of interest among directors or Key Managerial Personnel.

BDO India Services Private Limited conducted its assurance engagement in accordance with International Standard on Assurance Engagements (ISAE) 3000 (Revised) and ISAE 3410. The assurance scope covered standalone operations and excluded economic/financial performance indicators derived from audited financial records. BDO concluded that nothing came to their attention to suggest the disclosures were not presented fairly in material respects.

Century Enka has acquired an additional 37,00,000 equity shares of ABREL Century Energy Limited (ABRELCEL) through a rights issue, ensuring it maintains its mandatory 26% equity holding to qualify as a captive power user. The acquisition, completed on July 23, 2026, involves a cash consideration of ₹3,70,00,000 for shares purchased at a par value of ₹10 each. This strategic move is critical for the company to comply with the Electricity Act, 2003 and Electricity Rules, 2005, which mandate that a consumer must hold at least 26% equity in a power producer to access cheaper captive power tariffs, directly impacting operational cost structures.

The transaction was disclosed pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and further detailed in compliance with SEBI Circular No. SEBI/HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. Century Enka’s Board approved the acquisition to prevent dilution of its existing stake following the rights issue by ABRELCEL. The shares were credited to the company’s Demat account on July 23, 2026, after ABRELCEL completed the requisite corporate actions. The deal is classified as a related-party transaction but was conducted at arm’s length, with shares purchased strictly at face value.

Transaction Details

ABRELCEL operates as a Special Purpose Vehicle (SPV) incorporated on March 10, 2022, focused on wind-solar hybrid energy projects within the power generation, distribution, and transmission industry. As per the filing, no governmental or regulatory approvals were required for this specific acquisition beyond standard compliance. The primary object of the acquisition was to comply with the minimum shareholding requirement of 26% under captive project rules, ensuring the power plant qualifies as a group captive power plant for the consumer.

Financial Performance of ABRELCEL

ABRELCEL has shown fluctuating revenue trends over the past three fiscal years. The SPV reported a turnover of ₹1,884.40 Lakhs as of March 31, 2026.

What the Numbers Show

The acquisition underscores Century Enka’s strategic reliance on captive power infrastructure to manage operational costs. By maintaining exactly 26% ownership, the company secures regulatory benefits associated with captive power plants, which typically offer more stable and lower energy costs compared to open-market procurement. The flat revenue growth of ABRELCEL in FY25 compared to FY24 suggests a maturation phase in its wind-solar hybrid projects, where capital expenditure may have stabilized while generation capacity remains consistent. This steady state supports Century Enka’s long-term energy security strategy without requiring further significant equity injections at this stage.