NewsSilkflex Polymers Reports 199.8% Revenue Growth in Q4 FY26, Full-Year PAT Surges 73.6% to INR12.2 CroresSilkflex Polymers Reports 199.8% Revenue Growth in Q4 FY26, Full-Year PAT Surges 73.6% to INR12.2 Crores
Silkflex Polymers (India) Limited reported Q4 FY26 revenue from operations of INR39.1 crores, up 199.8% year-on-year, with EBITDA rising 224.4% to INR9 crores and PAT growing 234.1% to INR4.7 crores. For the full year FY26, revenue grew 37.7% to INR110.3 crores, EBITDA increased 87.3% to INR21.7 crores, and PAT rose 73.6% to INR12.2 crores. The company's Vadodara manufacturing facility, operational since November with a 500 metric ton per month installed capacity, achieved approximately 60% utilization in its first year, with full utilization targeted by the end of FY27. Management aims to shift the revenue mix to 50% manufacturing and 50% trading, from the current 75.9%/24.1% split, and expects an overall EBITDA margin expansion of 200 to 300 basis points at the company level upon reaching optimal utilization.
*this image is generated using AI for illustrative purposes only.
Silkflex Polymers (India) Limited held its Q4 FY26 Earnings Conference Call on April 28, 2026, with Chairman and Managing Director Mr. Tushar Lalit Kumar Sanghavi and Whole-time Director and CFO Mrs. Urmi Raj Mehta presenting the company's financial results and operational highlights. The call, hosted by X-B4 Advisory, marked a significant milestone as the company reported its first full year of commercial manufacturing operations at its Vadodara facility.
Q4 FY26 Financial Performance
The company delivered robust growth across all key financial metrics in Q4 FY26. Revenue from operations stood at INR39.1 crores, registering a growth of 199.8% over Q4 FY25. EBITDA increased by 224.4% to INR9 crores, driven by operating leverage and cost control, with EBITDA margin improving by 180 basis points to 23.1% from 21.3% in the same period last year. PAT grew by 234.1% to INR4.7 crores, with PAT margin expanding by 120 basis points from 10.7% to 11.9%.
| Metric: | Q4 FY26 | Change (YoY) |
|---|---|---|
| Revenue from Operations: | INR39.1 crores | +199.8% |
| EBITDA: | INR9 crores | +224.4% |
| EBITDA Margin: | 23.1% | +180 bps |
| PAT: | INR4.7 crores | +234.1% |
| PAT Margin: | 11.9% | +120 bps |
During Q4 FY26, the revenue mix shifted meaningfully towards manufacturing, with manufacturing contributing INR16 crores and the balance coming from the trading business, representing approximately a 40%/60% split between manufacturing and trading respectively.
Full Year FY26 Financial Performance
For the full year FY26, Silkflex Polymers delivered broad-based growth across revenue, EBITDA, and profitability metrics. Annual revenue grew by 37.7% to INR110.3 crores, up from INR80 crores in FY25. EBITDA for the year stood at INR21.7 crores, up 87.3% year-on-year, with EBITDA margin expanding by 520 basis points. PAT increased by 73.6% to INR12.2 crores, with PAT margin improving by 230 basis points.
| Metric: | FY26 | FY25 | Change (YoY) |
|---|---|---|---|
| Revenue from Operations: | INR110.3 crores | INR80 crores | +37.7% |
| EBITDA: | INR21.7 crores | — | +87.3% |
| EBITDA Margin Expansion: | — | — | +520 bps |
| PAT: | INR12.2 crores | — | +73.6% |
| PAT Margin Expansion: | — | — | +230 bps |
Revenue Mix and Segment Performance
In FY26, the distribution business accounted for 75.9% of total revenue, while manufacturing contributed 24.1%, reflecting the first year of manufacturing operations. Within the distribution business, the textile ink segment remained dominant at 94.5% of total revenue, while wood coatings accounted for 5.5%. Segment-wise performance for FY26 is detailed below:
| Segment: | FY26 Revenue | FY25 Revenue | Growth |
|---|---|---|---|
| Textile Ink: | INR104.1 crores | INR76.7 crores | +35.7% |
| Wood Coating: | INR6.1 crores | INR3.3 crores | +85.1% |
Management noted that the wood coating segment, while smaller, is steadily gaining traction and is considered a high-potential vertical. The company recently opened a branch in Kochi to tap into the furniture manufacturing hub, reporting positive early customer response driven by growing demand for solvent-free solutions.
Vadodara Manufacturing Facility and Operational Highlights
The Vadodara facility, which commenced commercial production in November, is spread over 10 acres with a 72,000 square feet automated setup and an installed capacity of 500 metric tons per month. The plant operates on a boiler-less, zero-carbon and zero-discharge model. Key operational parameters are summarised below:
| Parameter: | Details |
|---|---|
| Land Area: | 10 acres |
| Setup Size: | 72,000 square feet (automated) |
| Installed Capacity: | 500 metric tons per month |
| Current Utilization: | Approximately 60% |
| Operating Model: | Boiler-less, zero-carbon, zero-discharge |
| Products Manufactured: | Textile binder and table glue |
Under a technology transfer agreement with Silkflex Malaysia, the company has commenced in-house manufacturing of textile binder and table glue. Management indicated that this backward integration is expected to improve EBITDA margins by approximately 20% to 25%, reduce import dependency, and enhance supply reliability. The company also retains full commercial rights to sell binder products to third-party industries, including paints, coatings, and industrial applications.
Management stated that the manufacturing segment carries EBITDA margins of approximately 20% to 25%, compared to 12% to 15% for the trading business. At full capacity utilization, an overall EBITDA expansion of 200 to 300 basis points is anticipated at the company level, based on the FY26 full-year base. Approximately 80% of the facility space remains available for future expansion, with additional vessel investments estimated at INR3 crores to INR5 crores depending on requirements.
Outlook and Strategic Priorities
Management outlined the following priorities for FY27 and beyond:
- Scaling manufacturing capacity utilization to 100% by the end of FY27
- Increasing manufacturing contribution to 50% of total revenue mix, from the current 24.1%
- Expanding binder sales into non-textile industries such as paints, coatings, and construction
- Targeting manufacturing revenue of INR60 crores to INR70 crores in FY27, based on an average utilization trajectory
- Expecting 10% to 20% growth in the trading business in FY27, while prioritising manufacturing scale-up
- Reducing debt through internal accruals, with no major additional capex planned beyond incremental vessel additions
- Launching new products from ongoing R&D efforts within approximately 3 to 4 months
Management also noted that inventory stood at around INR29 crores, attributing the elevated level to the need to stock 108 imported products across multiple warehouses and offices nationwide, given that in-house manufacturing currently covers only two products. On working capital, management expressed confidence that internal cash flows would be sufficient to support growth without working capital becoming a constraint in the near term.
Historical Stock Returns for Silkflex Polymers
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.19% | -2.91% | +75.59% | +140.00% | +210.42% | +257.75% |
How quickly can Silkflex Polymers expand its in-house manufacturing portfolio beyond textile binder and table glue to reduce the 108 imported products it currently stocks, and what impact would this have on inventory levels and working capital?
As the company targets 50% manufacturing revenue contribution in FY27, how vulnerable is its trading business margins to potential competition from other domestic manufacturers entering the textile ink segment?
Given that the Vadodara facility operates on a zero-carbon, zero-discharge model, could Silkflex Polymers leverage ESG credentials to attract premium pricing or preferential contracts from sustainability-focused global textile brands?
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