Indo Rama Synthetics (India) Limited has issued a postal ballot notice seeking shareholder approval for material related party transactions worth ₹800 crore with TPT Petrochemicals Public Co. Limited, Thailand, for the financial year 2025-26. This move represents a significant increase from the previously approved limit of ₹400 crore.

Key Details of the Proposed Transaction

• Purpose: Purchase of Purified Terephthalic Acid (PTA)
• Related Party: TPT Petrochemicals Public Co. Limited, Thailand
• Transaction Value: Up to ₹800 crore for FY 2025-26
• Voting Period: November 18 to December 17, 2025

Background and Rationale

The enhanced approval follows a business novation agreement effective July 1, 2025. As part of an internal reorganization, Indorama Petrochem Limited (IRPL) novated its entire business to TPT Petrochemicals. Consequently, all business transactions previously conducted with IRPL are now being carried out by TPT.

Indo Rama Synthetics, which manufactures polyester products, requires PTA as a prime raw material. The company states that this arrangement is necessary to supplement its PTA requirements, which are not adequately available domestically.

Financial Implications

• The proposed transaction value (₹800 crore) represents approximately 19.74% of Indo Rama Synthetics' annual consolidated turnover for the preceding financial year.
• As of September 30, 2025, related party transactions with TPT stood at ₹235.09 crore.

Governance and Approval Process

The transaction has been reviewed and recommended by the Audit Committee and approved by the Board of Directors. As per SEBI regulations, the company is seeking shareholder approval through a postal ballot, as the transaction exceeds 10% of the annual consolidated turnover.

Voting Details

Shareholders are advised to review the detailed postal ballot notice and explanatory statement before casting their votes. The company has emphasized that this transaction is in the ordinary course of business and at arm's length pricing.

Indo Rama Synthetics' move to secure a higher limit for related party transactions underscores the company's strategy to ensure a stable supply of critical raw materials amidst global supply chain challenges.

Indo Rama Synthetics (India) Limited , a leading polyester manufacturer, has reported a significant turnaround in its financial performance for the second quarter. The company's consolidated net profit stood at 246.00 million rupees, marking a substantial improvement from a loss of 441.00 million rupees in the same period last year.

Financial Highlights

• Revenue Growth: The company's revenue grew to 12.22 billion rupees from 9.53 billion rupees year-over-year, representing a 28.23% increase.
• EBITDA Surge: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed a remarkable improvement, reaching 803.80 million rupees compared to 76.10 million rupees in the previous year.
• Margin Expansion: The EBITDA margin expanded significantly to 6.58% from 0.80% in the same quarter last year.

Quarterly Performance Analysis

A closer look at the quarterly financial data reveals:

The company's performance shows a strong recovery, with significant improvements across all key financial metrics.

Half-Yearly Performance

For the first half of FY26, Indo Rama Synthetics has shown consistent growth:

The half-yearly results further underscore the company's improved financial health and operational efficiency.

Operational Improvements

The company's management attributes this turnaround to several factors:

1. Cost Rationalization: Effective measures to optimize operational costs have contributed to improved margins.
2. Market Demand: A recovery in market demand for polyester products has supported revenue growth.
3. Operational Efficiency: Enhanced production efficiency has helped in better utilization of resources.

Future Outlook

While the company has shown impressive growth, it maintains a cautious outlook due to global economic uncertainties. The management remains focused on sustaining operational efficiencies and exploring new market opportunities to maintain this growth trajectory.

Indo Rama Synthetics' strong performance in Q2 reflects its resilience and adaptability in a challenging market environment. As the company continues to focus on strategic growth initiatives, investors and market watchers will be keen to see if this positive momentum can be sustained in the coming quarters.