Century Enka profit surges 479% on strong volume growth

1 min read Updated on 28 May 2026, 07:32 AM

Reviewed by

Shriram SScanX News Team

AI Summary

Century Enka Limited reported a 479% year-on-year increase in profit after tax to ₹39 crores for Q4FY26, supported by a 9% rise in operating revenue to ₹484 crores and a 530% surge in EBITDA to ₹55 crores. The performance was driven by robust volume growth in the Tire Cord segment and effective cost pass-throughs. For FY26, net profit grew 52% to ₹101 crores despite a 15% decline in revenue, with EBITDA margins improving to 8.67%.

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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

Metric	Q4FY26	YoY Growth
Operating Revenue	₹484 crores	9%
EBITDA	₹55 crores	530%
EBITDA Margin	11.46%	948 bps expansion
Profit After Tax	₹39 crores	479%
Total Volume	20,711 metric tons	14%

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.

Historical Stock Returns for Century Enka

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.46%	+1.47%	+13.90%	+11.24%	+3.70%	+27.64%

What is the projected revenue contribution from the new Polyester Tire Cord Fabric facility once commercial sales commence in FY27?

How will the company sustain demand momentum if the GST rate reduction benefits on tires and automobiles begin to taper off?

What is the expected timeline for the Finance Ministry's final notification on the anti-dumping ruling for nylon filament yarn imports?

Financial Performance for FY26

For the quarter ended March 31, 2026, the company reported a consolidated net profit of INR 394 Mn, a significant rise from INR 68 Mn in the corresponding quarter of the previous year. Revenue from operations for Q4 FY26 was INR 4,835 Mn, an 8.9% YoY growth. EBITDA for the quarter increased by 529.5% to INR 554 Mn, with margins expanding to 11.46%.

The following table summarizes the consolidated financial results for the year and quarter ended March 31, 2026:

Metric (INR Mn)	Year Ended 31-Mar-26	Year Ended 31-Mar-25	Three Months Ended 31-Mar-26	Three Months Ended 31-Mar-25
Revenue from Operations	17,054	20,017	4,835	4,440
EBITDA	1,478	1,147	554	88
Net Profit	1,008	665	394	68
Earnings Per Share (INR)	46.15	30.42	18.03	3.09

Operational Highlights

The company's operational revenue for FY26 was INR 17,054 Mn with an EBITDA margin of 8.67%. Product-wise sales for the year were distributed between Reinforcement (48%), Yarn (49%), and Others (3%). In Q4 FY26, volume performance reached 20,711 MT, up from 18,149 MT in Q4 FY25. The company noted that demand for Nylon Tyre Cord Fabric (NTCF) remained robust, supported by growth in the tractor and 2-3-wheeler segments.

Board Decisions

The Board of Directors, in its meeting held on May 21, 2026, approved the audited financial results for the quarter and year ended March 31, 2026. Additionally, the board approved the appointment of M/s. Singhi & Co., Chartered Accountants, as the Statutory Auditors for a term of five years, subject to shareholder approval. The board also redesignated Mr. Suresh Sodani as Managing Director and Chief Executive Officer without any change in his existing terms and conditions.

Dividend Declaration

Pursuant to the recommendation of the board, a dividend of 110%, or INR 11 per equity share of INR 10 each, has been recommended for the financial year ended March 31, 2026. This dividend is subject to the approval of shareholders at the upcoming Annual General Meeting.

Earnings Conference Call

Century Enka held an earnings conference call on May 22, 2026, at 2:00 P.M. (IST) to discuss the Q4-FY26 and FY26 earnings. The audio recording of the conference call has been uploaded to the company's website and is accessible via the provided link.

Historical Stock Returns for Century Enka

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.46%	+1.47%	+13.90%	+11.24%	+3.70%	+27.64%

How might Century Enka's profitability trajectory evolve in FY27 given the significant revenue decline from INR 20,017 Mn to INR 17,054 Mn despite improved margins?

Could the sustained demand growth in the tractor and 2-3-wheeler segments drive Century Enka to expand its Nylon Tyre Cord Fabric production capacity in the near term?

How will the appointment of new statutory auditors M/s. Singhi & Co. potentially impact Century Enka's financial reporting practices or investor confidence going forward?