Century Enka reported a standalone net profit of ₹613.1 crore for the quarter ended June 30, 2026 (Q1FY27), marking a 298% increase from ₹153.5 crore in the corresponding period of the previous year. The sharp rise in profitability was driven by a 38% year-on-year growth in revenue from operations to ₹5,542.9 crore, reflecting strong demand for its synthetic yarn products and improved operating leverage. Consolidated net profit stood at ₹617.0 crore, compared to ₹153.8 crore in Q1FY26.

The Board of Directors approved the unaudited financial results on July 28, 2026, pursuant to Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. KKC & Associates LLP served as the independent auditor, conducting a limited review of the financial statements prepared under Ind AS 34.

Financial Performance Highlights

Revenue from operations climbed to ₹5,542.9 crore in Q1FY27 from ₹4,015.3 crore in Q1FY26. This top-line expansion was accompanied by significant margin improvement. EBITDA rose to ₹857.4 crore from ₹199.6 crore, widening the EBITDA margin to approximately 15.5% from 5.0% in the year-ago quarter. The cost of materials consumed increased to ₹3,709.2 crore from ₹2,438.8 crore, but was offset by better pricing power and operational efficiencies.

Other income decreased to ₹84.9 crore from ₹136.3 crore in the prior year quarter. Tax expense for the quarter was ₹1,877.0 crore, comprising current tax of ₹1,877.0 crore and deferred tax benefit of ₹74.0 crore. The company’s share in profit from its associate, ABReL Century Energy Limited, contributed ₹3.9 crore to consolidated earnings.

Legal and Regulatory Updates

The auditor’s report included an emphasis of matter regarding an ongoing excise duty dispute. The Excise Department had raised a demand of ₹22,927 crore plus interest and penalty in 2013. Following orders by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) and the Commissioner, CGST & Central Excise, Raigad, the confirmed demand was reduced to ₹730 crore. Century Enka has deposited this amount under protest, with the appeal pending before the Supreme Court of India. Based on legal advice, no provision has been made for this liability.

Additionally, the company recognized the statutory impact of new Labour Codes as an exceptional item in the previous fiscal year ended March 31, 2026. No such exceptional items were reported in Q1FY27.

What the Numbers Show

The dramatic expansion in net profit margins indicates that Century Enka is successfully translating revenue growth into bottom-line gains, likely due to favorable input-output price dynamics in the synthetic yarn sector. The absence of exceptional items in the current quarter, contrasted with the prior year’s labor code adjustments, suggests a stabilization in regulatory cost impacts. Investors should monitor the outcome of the Supreme Court appeal regarding the excise duty dispute, as it represents a potential contingent liability, though management maintains a strong legal position.

Century Enka Limited has submitted its Notice of the 60th Annual General Meeting (AGM) and Integrated Annual Report for FY 2025–26 to the stock exchanges, disclosing a strong improvement in full-year financial performance. On a standalone basis, the company reported net profit after tax of ₹10,169 lacs for the financial year ended 31st March 2026, compared to ₹6,710 lacs in the previous year. Net revenue from operations declined to ₹1,70,541 lacs from ₹2,00,169 lacs, primarily due to lower sales volumes and reduced raw material prices. Profit before depreciation, finance cost, exceptional items and tax rose to ₹18,969 lacs from ₹15,208 lacs, reflecting approximately 25% growth. The Board has recommended a dividend of ₹11 per equity share (110%), up from ₹10 per share (100%) in the previous year, with the dividend payment date set on or after Monday, 24th August 2026.

Full-Year Financial Performance

The company's financial results for FY 2025–26 reflect significant profitability improvement despite a revenue contraction. The following table summarises the key standalone and consolidated financial highlights:

On a consolidated basis, net profit stood at ₹10,084 lacs against ₹6,647 lacs in the previous year. The decline in revenue was attributed to lower volumes and realization in both Nylon Tyre Cord Fabric (NTCF) and Nylon Filament Yarn (NFY) segments, linked to lower raw material prices. An exceptional item of ₹186 lacs was recognized as the statutory impact of the new Labour Codes, classified as past service cost under gratuity. The company's Earnings Before Interest, Depreciation and Tax (EBIDTA) increased by 25% to ₹190 crore in FY 2025–26 from ₹152 crore in the previous year.

Segmental and Operational Highlights

Century Enka maintained its market leadership with a 24% domestic market share in Nylon Filament Yarn (NFY) and 25% in Nylon Tyre Cord Fabric (NTCF). Total installed production capacity stood at 92,000 MT, with total output of 72,508 MT during the reporting period. The company's product portfolio is balanced between Reinforcement Fabric (revenue share of ₹815.36 Crs) and Synthetic Yarn (revenue share of ₹827.84 Crs). During the year, the company initiated steps to increase capacity of Draw Texturizing Yarn (DTY) and Mother Yarn, and continued focus on product customization and value-added products. The company also invested in ABREL Century Energy Limited to obtain power from the second phase of its Hybrid (Solar and Wind) Power Project.

Balance Sheet and Key Ratios

The company's balance sheet strengthened considerably during the year. Total equity on a standalone basis rose to ₹1,50,059 lacs from ₹1,42,144 lacs. Total borrowings reduced to ₹1,990 lacs from ₹3,390 lacs, resulting in a debt-to-equity ratio of 0.01. Capital expenditure during the year amounted to ₹37.02 Crs, directed towards modernisation, technology upgrades, energy conservation, and infrastructure development. Foreign exchange used during the year was ₹33,609 lacs (previous year ₹79,982 lacs) and earned was ₹7,296 lacs (previous year ₹8,281 lacs).

Sustainability and ESG Performance

Century Enka achieved a 57% share of renewable energy in total energy consumption during FY 2025–26, with total energy consumption of 15,20,584.34 GJ. The company recorded a 13.37% reduction in carbon intensity (tCO2e/MT) compared to the previous year. Total Scope 1 emissions stood at 15,481.32 tCO2e and Scope 2 emissions at 90,040.16 tCO2e. Total water consumption across both facilities was 6,46,601 kiloliters, with both plants achieving Zero Liquid Discharge (ZLD) status. CSR expenditure for the year was ₹179.42 lacs, benefiting approximately 48,669 individuals across education, healthcare, rural infrastructure, and women empowerment initiatives.

60th AGM and Corporate Governance

The 60th AGM of Century Enka Limited is scheduled for Thursday, 20th August 2026, at 2:30 PM (IST), to be held through Video Conferencing. Key agenda items include adoption of audited financial statements, declaration of dividend, appointment of M/s. Singhi & Co. as new Statutory Auditors for a term of five years, re-appointment of Mrs. Rajashree Birla as Non-Executive Director (liable to retire by rotation), and re-appointment of Mr. Suresh Sodani as Managing Director and CEO for a further period of two years from 1st April 2027 to 31st March 2029. The Board comprises six directors, with Independent Directors representing 50% of total Board strength. The company's credit ratings were reaffirmed at CRISIL A+/Stable for long-term and CRISIL A1+ for short-term bank facilities.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE485A01015/263de5b8-e50d-4820-b374-55796f538441.pdf