Century Enka Reports Q2 FY26 Revenue of INR 4,087 Million Amid Market Challenges
Century Enka Limited, a leading NFY and NTCF producer in India, reported Q2 FY26 results with revenue down 23.80% YoY to ₹4,087 crore, but net profit up 4.20% to ₹223 crore. EBITDA margin improved by 66 bps to 7.73%. The company faced headwinds in core segments due to lower demand and increased Chinese imports. Tyre Cord Fabric volumes were impacted, while Filament Yarn saw improved sales volumes. Century Enka maintains strong market positions with 23% share in NFY and 25% in NTCF. The company anticipates better demand in H2 FY26 and is pursuing anti-dumping measures against Chinese imports.
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Century Enka Limited , a leading producer of Nylon Filament Yarn (NFY) and Nylon Tyre Cord Fabric (NTCF) in India, has released its financial results for the second quarter of fiscal year 2026, revealing a mixed performance amidst challenging market conditions.
Financial Highlights
| Metric | Q2 FY26 | Q2 FY25 | Y-o-Y Change |
|---|---|---|---|
| Revenue from Operations | 4,087.00 | 5,363.00 | -23.80% |
| EBITDA | 316.00 | 379.00 | -16.60% |
| EBITDA Margin | 7.73% | 7.07% | +66 bps |
| Net Profit | 223.00 | 214.00 | +4.20% |
| PAT Margin | 5.46% | 3.99% | +147 bps |
Operational Performance
Century Enka faced headwinds in its core business segments during Q2 FY26:
Tyre Cord Fabric (Reinforcement)
- Volumes continued to be impacted by lower demand and increased imports from China.
- Margins remained under pressure due to cheap imports.
- The company expects NTCF demand to improve following GST cuts on tyres and a potential uptick in the auto industry.
Filament Yarn
- Sales volumes improved sequentially after the restart of a plant following fire disruption and revamp.
- New investments in Mother Yarn and Value-Added Products (VAPs) helped improve margins.
- However, significantly increased imports from China at very low prices impacted margins on commodity products.
Raw Material and Cost Management
- Caprolactam prices continued to decline to record lows, though the pace of decline has reduced.
- The company's focus on renewable energy at its Bharuch plant helped control power costs.
- Continuous efficiency improvement efforts are helping to offset pressure on margins.
Market Position and Outlook
Century Enka maintains a strong market position with:
- 23% domestic market share in NFY
- 25% domestic market share in NTCF
The company anticipates better demand in the second half of FY26 due to the festive season and the potential positive impact of favorable monsoons on farm income. However, ongoing geopolitical tensions and trade conflicts remain key risks for the entire value chain.
Strategic Initiatives
- The company is pursuing anti-dumping duty (ADD) to counter low-price dumping from China in the filament yarn segment.
- Approval process for Polyester Tyre Cord Fabric (PTCF) is progressing as per schedule, indicating potential diversification efforts.
Despite the challenging quarter, Century Enka's focus on efficiency, product diversification, and strategic investments in value-added products demonstrates its efforts to navigate the current market dynamics and position itself for future growth.
Investors and market watchers will be keen to see how the company's strategies unfold in the coming quarters, particularly in light of the expected demand improvements and ongoing efforts to counter import pressures.
Historical Stock Returns for Century Enka
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.38% | -3.04% | -6.10% | +2.94% | -36.10% | +162.17% |
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