Ester Industries disclosed on August 20, 2026, that it has cancelled the proposed inter-se transfer of equity shares within its promoter group. The cancellation refers to the earlier intimation filed on August 14, 2026, regarding the acquisition of 3,797,468 shares by Ayush Vardhan Singhania from his father, Arvind Singhania. The company stated that the transaction will not be executed due to unforeseen circumstances.

The proposed deal involved a gift of shares constituting 3.64% of the company’s total voting rights. Under Regulation 10(5) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, such transfers between persons acting in concert are exempt from open offer obligations. With the cancellation, no change in ownership structure or monetary consideration will occur.

Transaction Status

The advance intimation filed with the Bombay Stock Exchange and the National Stock Exchange on August 14 outlined the mechanics of the now-cancelled transfer:

Both parties had previously declared compliance with Chapter V of the SEBI Takeover Regulations. The acquirer confirmed in the cancellation notice that no provision of the SEBI Takeover Regulations has been contravened.

Impact on Shareholding Pattern

Since the transfer is cancelled, the shareholding pattern remains as it was prior to the initial disclosure. The promoter group continues to hold an aggregate stake of 62.32% in the chemical manufacturer.

Ayush Vardhan Singhania’s individual holding remains at 934,318 shares (0.90%), and Arvind Singhania retains his direct holding of 3,797,468 shares (3.64%). Other promoter entities, including Wilemina Finance Corporation (47.29%), MOVI Limited (7.39%), and Modi Rubber Limited (2.52%), continue to hold their existing stakes without alteration.

What the Numbers Show

The cancellation ensures continuity in the promoter group’s consolidated control. With no change in individual or aggregate holdings, the voting power dynamics within the promoter circle remain static. This avoids any potential short-term regulatory scrutiny associated with substantial acquisitions, even those exempt from open offers, while maintaining the status quo of family-owned concentration.

Ester Industries reported a consolidated net profit of ₹18.6 crore (₹1,860 lakh) for the quarter ended June 30, 2026, marking a significant turnaround from a net loss of ₹7.2 crore (₹720 lakh) in Q1FY26. The company’s standalone net profit also grew by 50.5% to ₹14.5 crore (₹1,450 lakh), up from ₹9.6 crore in the corresponding period last year. This improvement underscores strong operational leverage in its core polyester business, which drove top-line expansion despite a contraction in the speciality polymers segment.

The Board of Directors approved the unaudited financial results at its meeting held on August 11, 2026. The results were reviewed by the Audit Committee and comply with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Walker Chandiok & Co LLP, the statutory auditors, issued the limited review report on both standalone and consolidated financial statements.

Financial Performance

Standalone total income increased to ₹347.7 crore (₹34,770 lakh) in Q1FY27 from ₹284.9 crore in Q1FY26. Consolidated total income reached ₹441.9 crore (₹44,190 lakh), an increase of 27.4% from ₹346.9 crore in Q1FY26. Standalone EBITDA, including non-operating income, rose 25.2% to ₹40.0 crore, while consolidated EBITDA more than doubled, rising 103.4% to ₹58.9 crore from ₹28.9 crore.

Profit before tax stood at ₹19.42 crore, up from ₹12.98 crore. Consolidated total expenses were ₹417.97 crore, while the share of loss from the joint venture, Ester Loop Infinite Technologies Private Limited, was ₹45.63 lakh. EBITDA margins expanded significantly to 13.3% from 8.3% in Q1FY26, reflecting improved operating performance and better business mix.

The table below summarises key financial metrics across both standalone and consolidated bases:

Segment-wise Results

The Polyester chips and film segment contributed ₹303.35 crore to standalone revenue, up from ₹229.98 crore in Q1FY26, with segment profit before tax and interest of ₹27.75 crore. On a consolidated basis, the Polyester chips and film segment generated ₹399.45 crore in revenue, an increase of 37% year-on-year, supported by improved realizations and higher volume of Value-Added Films. Film sales volume increased by 2.7% to 22,120 MT. Value-Added & Specialty Products (VAS) volumes grew 23% to 6,368 MT, representing 29% of total Film sales. Chips sales volume was 496 MT, generating revenue of ₹5.3 crore.

The Speciality polymers segment saw standalone revenue decline to ₹35.86 crore from ₹49.02 crore, though it recorded a segment profit of ₹15.21 crore. On a consolidated basis, Speciality polymers contributed ₹32.71 crore in revenue, a decline of 32% year-on-year due to a 24% drop in sales volume. However, the segment’s EBIT margin improved from 31.7% to 45.3% due to better product mix. rPET sales volume increased by 19% to 1,394 MT, with revenue rising 24% to ₹17.5 crore.

The segment-wise breakdown is presented below:

What the Numbers Show

The significant improvement in consolidated profitability — moving from a loss to a profit of ₹18.6 crore — highlights the operational leverage gained in the core polyester business. While the Speciality polymers segment experienced a revenue contraction, the robust growth in the Polyester chips and film segment more than compensated, driving overall top-line and bottom-line expansion. The rise in other income also provided a notable boost to the standalone bottom line. Chairman Arvind Singhania attributed the turnaround to an improving operating environment, higher realizations, and reduced surplus from China following its "anti-involution" policy, which has curbed predatory pricing.

Corporate Actions

During the quarter, the company allotted 6,708,851 equity shares at an issue price of ₹158 per share following the conversion of fully convertible warrants. This increased the paid-up equity share capital from ₹48.79 crore to ₹52.15 crore. An amount of ₹325 lakh received against unexercised warrants was forfeited. The Board also recommended a final dividend of ₹0.25 per equity share for FY26, subject to shareholder approval at the 40th Annual General Meeting scheduled for September 24, 2026. The record date for dividend eligibility is fixed for September 17, 2026, and if declared, the dividend will be paid by October 24, 2026.

Additionally, the joint venture ELiTe has secured a Letter of Intent from a leading global sports brand for Loop™ PET Fiber Grade resin, under a multi-year framework for offtake of up to 15,000 MT per annum from its upcoming Gujarat facility. This new LOI adds to the earlier commitment from Nike, covering a substantial portion of the planned annual capacity well ahead of the facility's expected commercial start-up in 2028.

Cash Position

As on June 30, 2026, the company’s consolidated cash and bank balance stood at ₹183.5 crore. Investments in hand as on the same date were ₹52.6 crore. The opening cash and bank balance for the quarter was ₹104.9 crore, with investments standing at ₹54.5 crore as on April 1, 2026.