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.

Ester Industries Limited , a leading manufacturer of polyester films and specialty polymers, has reported mixed financial results for the first quarter of fiscal year 2026. The company saw growth in revenue but experienced a decline in profitability on a consolidated basis.

Standalone Performance

On a standalone basis, Ester Industries reported a revenue from operations of Rs 279.01 crore for Q1 FY2026, marking an 8.13% increase from Rs 258.03 crore in the previous quarter. The company's net profit after tax stood at Rs 9.64 crore, compared to Rs 12.33 crore in the preceding quarter, indicating a 21.82% decrease.

Consolidated Results

The consolidated financial results paint a different picture. While the revenue from operations increased to Rs 338.20 crore from Rs 319.26 crore in the previous quarter, the company reported a net loss of Rs 7.16 crore. This is in contrast to the profit of Rs 1.96 crore recorded in the previous quarter.

Segment Performance

The company's financial results were broken down into two main segments:

1. Polyester Chips and Film: This segment generated revenue of Rs 290.14 crore, showing growth from the previous quarter's Rs 279.59 crore.

2. Specialty Polymers: This segment contributed Rs 48.07 crore to the revenue, up from Rs 39.67 crore in the preceding quarter.

Corporate Updates

In addition to the financial results, Ester Industries made several important announcements:

1. Appointment of New Secretarial Auditors: The Board of Directors has approved the appointment of M/s. Dhananjay Shukla & Associates as the company's Secretarial Auditors for a period of five years, subject to shareholder approval at the upcoming Annual General Meeting (AGM).

2. 39th Annual General Meeting: The company has scheduled its 39th AGM for September 26, 2025, to be held via video conferencing.

3. Record Date for Dividend: September 19, 2025, has been set as the record date for determining dividend eligibility for the financial year 2024-25.

4. Share Warrant Conversion: The company has completed the allotment of 35,44,302 equity shares pursuant to the conversion of fully convertible warrants, strengthening its equity base.

Management Commentary

Arvind Singhania, Chairman & CEO of Ester Industries Limited, commented on the results, stating, "While we've seen growth in our revenue, particularly in our Specialty Polymers segment, the challenging market conditions have impacted our profitability this quarter. We remain focused on our long-term strategy and are confident in our ability to navigate these headwinds."

The mixed results reflect the complex operating environment faced by Ester Industries. While the company has shown resilience in growing its top line, the pressure on profitability highlights the challenges in the sector. Investors and stakeholders will be keenly watching how the company addresses these challenges in the coming quarters.