Century Enka Limited has entered into a Power Purchase Agreement (PPA) with ABREL Century Energy Limited to establish a 9.9 MW wind-solar hybrid power plant for captive consumption. The agreement ensures a dedicated power supply for one of the company's facilities located at Bhosari, Pune, Maharashtra. The project is scheduled for commissioning on June 30, 2026, with a grace period of three months to account for potential delays.

The PPA was signed pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. ABREL Century Energy Limited, a Special Purpose Vehicle (SPV), will operate the power plant. To qualify as a captive user under the Electricity Act, 2003, and the Electricity Rules, 2005, Century Enka is required to hold a minimum of 26% of the equity share capital of the power producer.

The transaction falls within the definition of related party transactions. The company has confirmed that the agreement was conducted at arm's length. The project involves a domestic entity and focuses on the broad commercial consideration of setting up the 9.9 MW hybrid facility.

Key Details of the Agreement

The information regarding the PPA is available on the company's official website. Rahul Dubey, VP-Legal & Company Secretary, signed the disclosure on behalf of Century Enka Limited.

Century Enka Limited reported a strong financial performance for the quarter ended March 31, 2026, driven by healthy volume growth and effective cost management. Profit after tax for the quarter stood at ₹39 crores, registering a substantial growth of 479% year-on-year. Operating revenue for Q4FY26 stood at ₹484 crores, registering a growth of 9% year-on-year and a sequential growth of 17% quarter-on-quarter.

The company's operational performance was bolstered by robust demand in the Tire Cord business, supported by healthy traction in the tractor and two-wheeler segments. Management noted that a sharp increase in raw material prices following the Iran war was effectively passed through to customers. Additionally, the reduction in GST rates on tires and automobiles supported demand momentum across the industry. Total volume for the quarter grew by 14% year-on-year to 20,711 metric tons.

For the full financial year FY26, operating revenue stood at ₹1,705 crores, reflecting a decline of 15% year-on-year, while net profit for the year stood at ₹101 crores, recording a strong growth of 52% year-on-year. EBITDA for the year stood at ₹148 crores, registering a healthy growth of 29% year-on-year, with EBITDA margin improving significantly to 8.67%.

Financial Highlights

Looking ahead, the company expects commercial sales from its Polyester Tire Cord Fabric (PTCF) facility to commence in FY27. Management indicated a total CAPEX outlay of over ₹100 crores for FY27, primarily directed towards value-added products, capacity expansion of the Mother Yarn project, and efficiency improvements. The company also awaits the final notification from the Finance Ministry regarding a favorable anti-dumping ruling on nylon filament yarn imports.