Ester Industries , a prominent player in the packaging industry, has submitted its monitoring agency report for the quarter ended June 30, 2025, detailing the utilization of proceeds from its recent preferential issue of convertible warrants. The report, prepared by CRISIL Ratings Limited, sheds light on the company's financial maneuvers and strategic investments.

Key Highlights

Fund Utilization

The monitoring report reveals that Ester Industries has made significant strides in allocating the raised funds. Out of the total issue size of Rs 174.99 crore, the company has utilized Rs 16.80 crore for investment in its joint venture company, Ester Loop Infinite Technologies Private Limited.

Unutilized Funds Deployment

The company has prudently deployed the unutilized funds of Rs 68.95 crore in fixed deposits with Bank of India. These deposits are earning returns ranging from 4.50% to 6.25%, ensuring that the idle funds continue to generate value for the company.

Allocation of Proceeds

The proceeds from the preferential issue are earmarked for two primary purposes:

1. Investment in Joint Venture: Rs 159.99 crore
2. General Corporate Purposes: Rs 15.00 crore

Implementation Status

According to the report, there have been no deviations from the stated objectives of the issue. The company is progressing as per plan, with no delays reported in the implementation of its intended use of funds.

Warrant Conversion Timeline

It's noteworthy that Rs 89.24 crore is yet to be received from warrant holders. These funds are expected upon the conversion of warrants into equity shares, which is slated to occur by May 13, 2026.

Monitoring Agency's Observations

CRISIL Ratings Limited, serving as the monitoring agency, has reported no material deviations or delays in the utilization of funds. The agency's report indicates that Ester Industries is adhering to its commitments as outlined in the offer document.

Compliance and Transparency

The submission of this monitoring report aligns with Ester Industries' commitment to transparency and compliance with SEBI regulations. It provides investors and stakeholders with a clear picture of how the company is managing and utilizing the funds raised through the preferential issue.

As Ester Industries continues to navigate its growth trajectory, the strategic allocation of these funds, particularly the investment in its joint venture, may play a crucial role in shaping the company's future in the competitive packaging sector.

Ester Industries , a leading manufacturer of polyester films and specialty polymers, has reported a robust performance for the first quarter, with consolidated revenue growing 19% year-on-year and EBITDA margin improving by 240 basis points to 8.35%.

Strong Growth Across Segments

The company's Polyester Films business showed impressive results, with sales volume increasing by 22.57% to 21,531 metric tons. The segment's revenue rose by 20.7% to INR 276.07 crores, driven by improved demand-supply dynamics and a higher proportion of value-added and specialty products. Notably, the share of value-added products in the total segmental volume increased to 24%, representing a 37% year-on-year growth.

Recycled PET Business Surges

A standout performance came from the company's recycled PET business, which saw revenue surge from INR 0.5 crores to INR 14 crores in the current quarter. This significant growth underscores the increasing demand for sustainable products in the industry.

Specialty Polymers Show Resilience

The Specialty Polymers business recorded a 4% volume growth, with total sales reaching 954 metric tons. While the EBIT margin normalized to 30-35% from an exceptionally high 43% in the previous year, the segment continues to demonstrate strong potential for growth.

Ester Filmtech Shows Improvement

Ester Filmtech, the company's subsidiary, showed notable improvement with capacity utilization increasing to 72% from 49% in the previous year. The business delivered a 23% volume growth and a 16% increase in revenue.

Financial Highlights

Note: Financial figures are in INR crores

Strategic Initiatives and Outlook

Ester Industries has unveiled a refreshed company logo, aligning with its long-term strategic focus on innovation and sustainability. The company is progressing with its 50-50 joint venture with Loop Industries and expects to commence commercial production of an additional 20,000 tons per annum recycled PET capacity in Hyderabad by September 2025.

Vaibhav Jha, Deputy CEO of Ester Industries, commented on the results, saying, "We are encouraged by the continued progress across both our key business segments. Our focused business strategy, concerted efforts in product innovation, strong product pipeline, and expanding global footprint position us well to deliver consistent and sustainable growth across both business segments."

The company remains optimistic about maintaining its growth momentum, despite challenges such as foreign exchange fluctuations and potential US tariff impacts. With a strong focus on increasing the share of specialty films and value-added products, Ester Industries is well-positioned for future growth in the evolving market landscape.

As the company enters its 41st year of operations, it continues to demonstrate resilience and adaptability in a dynamic industry environment, setting the stage for sustained growth and value creation for its stakeholders.