Ester Industries has released the full transcript of its earnings call held on Tuesday, August 18, 2026. The company announced the availability of the transcript on August 24, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance Overview

The transcript reveals strong financial results for the first quarter of FY27 (Q1FY27), ended June 30, 2026. Consolidated total income increased 27.4% year-on-year to ₹441.9 crore, up from ₹346.9 crore in the corresponding quarter last year. Profit after tax turned positive at ₹18.6 crore, compared to a loss of ₹7.2 crore in Q1FY26. Consolidated EBITDA grew 103.4% to ₹58.9 crore, with margins expanding to 13.3% from 8.3%.

Standalone total income rose 22% to ₹347.7 crore. Standalone EBITDA increased 25.2% to ₹40 crore, with an EBITDA margin of 11.5%. Standalone PAT grew 50.5% to ₹14.5 crore from ₹9.6 crore.

*Derived from disclosed growth percentage and current value.

Segment Highlights

The Polyester Film segment drove the revenue growth, with consolidated film revenues rising approximately 38% year-on-year to ₹399.5 crore. Film volumes increased 2.7% to 22,120 metric tons. The segment delivered an EBIT margin of 9.8%, up from 2.4%, supported by improved realizations and a higher contribution from Value-Added Specialty (VAS) products. VAS volumes grew 23% to 6,368 metric tons, accounting for 29% of total film volumes.

Ester Filmtech, a wholly-owned subsidiary, saw sales volume increase 22.7% to 9,807 metric tons. Its total income surged 62.7% to ₹159.6 crore. The unit turned profitable with a PAT of ₹4.7 crore, compared to a loss of ₹16.5 crore in the previous year. Capacity utilization reached 83%, the highest level achieved so far.

The Specialty Polymers segment reported lower volumes of 725 metric tons and revenue of ₹32.7 crore due to demand pressure in one high-margin product. However, profitability improved significantly, with EBIT margins rising to 45.3% from 31.7%.

The rPET business recorded a 19% year-on-year volume increase to 1,394 metric tons, with revenue growing 24% to ₹17.5 crore.

What the Numbers Show

The significant divergence between consolidated revenue growth (27.4%) and EBITDA growth (103.4%) highlights the impact of operational leverage and margin expansion. While film volumes grew modestly at 2.7%, the shift toward higher-margin VAS products and improved capacity utilization (84% consolidated) drove disproportionate profit growth. Additionally, the turnaround in Ester Filmtech’s performance contributed materially to the consolidated bottom line, turning a significant loss into a profit.

Strategic Updates and Outlook

Management highlighted favorable industry dynamics, including stable global BOPET prices and moderated trade tariffs following US Supreme Court rulings. The company aims to increase the proportion of VAS products to 50-60% over the next two to three years.

Regarding the ELITe joint venture with Loop Industries, the project is progressing through the engineering phase. Land acquisition is expected to conclude within two months, with operations targeted for calendar year 2028. Loop Industries secured a letter of intent from a global sports brand for up to 15,000 metric tons per year of PET fibre-grade resin.

On the balance sheet, gross total debt stood at ₹722 crore as on June 30, 2026, with liquidity of ₹236 crore. The company targets debt repayment of ₹100 crore for FY27. No major capex is planned for the standalone entity or polymer business beyond sustenance capex this fiscal year.

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.