Filatex India Limited has filed its Business Responsibility and Sustainability Report (BRSR) for the financial year ended March 31, 2026. The standalone disclosure covers environmental performance, social governance, and operational metrics for the man-made fibre manufacturer.

Operational Overview

The company reported a turnover of ₹4,16,051.22 lakh for FY26. Its primary business activity involves the manufacturing of synthetic partially oriented yarn, draw texturised yarn, fully drawn yarn, polyester chip, and narrow woven fabric, accounting for 97.74% of total turnover. Polyester multifilament yarn contributed 95.86% to the entity's turnover.

Filatex operates two plants and three offices across India, serving markets in 19 states and union territories domestically. International exports to 14 countries constituted 1.56% of total turnover. The company employs 1,129 permanent employees and 3,549 workers.

Environmental Metrics

Total energy consumption rose to 38,73,856.26 Gigajoules in FY26 from 35,17,751.29 Gigajoules in the prior year. Renewable energy sources contributed 5,81,458.81 Gigajoules, while non-renewable sources accounted for 32,92,397.45 Gigajoules. Energy intensity per rupee of turnover adjusted for Purchasing Power Parity (PPP) stood at 0.00189386.

Water withdrawal totalled 11,05,049 kilolitres, primarily sourced from third parties (6,55,146 kilolitres) and ETP recycled water (4,05,198 kilolitres). The company maintains a Zero Liquid Discharge mechanism through Effluent Treatment Plants with RO systems and evaporation processes.

Scope 1 greenhouse gas emissions decreased significantly to 9,679.04 MtCO2e from 13,667.50 MtCO2e. Conversely, Scope 2 emissions increased to 71,250.13 MtCO2e from 67,497.34 MtCO2e. Total waste generated rose to 35,398.50 metric tonnes, with 34,447.48 metric tonnes recovered through recycling or reuse.

Social Governance

The company spent ₹393.32 lakh on employee well-being measures, representing 0.09% of total revenue. All permanent employees (1,123) and workers (1,492) were covered by health and accident insurance. The turnover rate for permanent employees was 36.43%, up from 20.33% in FY25. Permanent worker turnover fell to 10.00% from 30.59%.

No fatalities or high-consequence work-related injuries were reported in FY26. The company recorded no complaints related to sexual harassment, discrimination, or child labour. All employees and workers received training on human rights issues.

What the Numbers Show

Scope 2 emissions constitute the dominant share of Filatex's carbon footprint, accounting for approximately 88% of combined Scope 1 and Scope 2 emissions in FY26. This highlights the significant impact of purchased electricity on the company's overall environmental profile, despite a notable reduction in direct Scope 1 emissions.

Filatex India delivered a strong FY26 performance, with profit after tax rising 36.7% to ₹183.90 crore and EBITDA growing 34.5% to ₹346.51 crore, even as revenue from operations edged down to ₹4,160.52 crore.

Financial Performance Overview

FY26 marked a year of meaningful margin improvement for Filatex India Limited. Despite a modest decline in revenue from ₹4,252.15 crore in FY25 to ₹4,160.52 crore in FY26, profitability improved sharply across all key metrics. EBITDA margin expanded from 6.06% in FY25 to 8.33% in FY26, while PAT margin rose from 3.16% to 4.42%. The company attributed the improvement to a better product mix, disciplined cost control and operating efficiency.

The following table summarises key financial metrics over the past four years:

Quarterly Financial Performance

The company's quarterly numbers for FY26 are presented below:

Volume and Balance Sheet Strength

Sales volume remained broadly steady at 3,88,813 MT in FY26, compared with 3,90,210 MT in FY25, while production stood at 3,89,027 MT. Capacity utilisation was sustained at over 90% across both manufacturing facilities at Dahej, Gujarat, and Dadra and Nagar Haveli.

The company's balance sheet continued to strengthen. The debt-equity ratio declined from 0.09 in FY25 to 0.08 in FY26, continuing a multi-year deleveraging trend from 0.33 in FY22. Return on equity improved from 10.62% to 12.96%, and return on capital employed rose from 12.53% to 14.90%.

Key Financial Ratios

Capital Expenditure Programme

During FY26, the Board approved a capital expenditure programme of approximately ₹690 crore, funded through debt of approximately ₹335 crore with the balance from internal accruals. The programme spans five initiatives:

The most significant initiative is the Ecosis chemical recycling facility, which converts polyester textile waste back into virgin-equivalent polyester. The plant is targeted for commissioning in October 2026. Product development and trials with international customers, including Decathlon and American & Efird, are ongoing. The company has invested approximately ₹64.98 crore in Ecosis Limited as of the reporting date.

Dividend and Standalone Financials

The Board has recommended a final dividend of ₹0.30 per equity share of face value ₹1 each for the year ended March 31, 2026, subject to shareholder approval at the Annual General Meeting scheduled for September 22, 2026.

On a standalone basis, total revenue stood at ₹4,18,998 lakhs and net profit after tax at ₹18,390 lakhs for FY26, compared with ₹4,27,306 lakhs and ₹13,457 lakhs respectively in FY25. Basic and diluted earnings per share were ₹4.14 for FY26, up from ₹3.03 in FY25.

Foreign exchange earned during the year was ₹6,887.86 lakhs, while foreign exchange used was ₹1,18,003.31 lakhs. The company's CSR obligation for FY26 was ₹314.43 lakhs, against which total CSR expenditure of ₹693.28 lakhs was incurred, resulting in an excess spend of ₹378.85 lakhs available for set-off in subsequent years.

Credit Rating and Governance

India Ratings & Research (a Fitch Group company) reaffirmed the company's credit rating on May 12, 2026, assigning IND AA-/Stable for long-term bank facilities and IND A1+ for short-term facilities. The wholly owned subsidiary Ecosis Limited received a term loan rating of IND A+/Stable. The statutory audit for FY26 was conducted by M/s Arun K. Gupta & Associates, whose report contained no qualifications, reservations or adverse remarks.