Ester Industries , a leading manufacturer of polyester films, specialty polymers, and recycled polyester (rPET), has reported a 7% year-on-year increase in consolidated revenue to ₹357.00 crore for the second quarter of fiscal year 2026. However, the company faced significant margin pressures, resulting in a net loss for the quarter.

Financial Highlights

• Consolidated revenue grew by 7% year-on-year to ₹357.00 crore in Q2 FY26
• EBITDA declined by 59% to ₹17.00 crore, with EBITDA margin contracting to 4.85% from 12.71% in Q2 FY25
• The company reported a net loss of ₹16.00 crore, compared to a net profit of ₹3.00 crore in the same quarter last year

Segment Performance

Polyester Chips and Film Segment

• Revenue increased marginally by 2.34% to ₹297.00 crore
• Segment reported an EBIT loss of ₹6.00 crore, compared to a profit of ₹23.00 crore in Q2 FY25
• Capacity utilization improved to 80% from 73% in Q2 FY25
• Sales volume of recycled PET (rPET) grew significantly to 1,046 MT, up 219% year-on-year

Specialty Polymers Segment

• Revenue grew by 39% year-on-year to ₹57.00 crore
• EBIT increased by 45% to ₹21.00 crore, with EBIT margin improving by 146 basis points to 37.03%
• Sales volume increased by 51% year-on-year

Management Commentary

Arvind Singhania, Chairman and CEO of Ester Industries, stated, "Our performance this quarter reflects the challenging market conditions, particularly in the Polyester Film segment. While we achieved volume growth across both segments, profitability was adversely affected due to softer margins in Polyester Films."

He added, "The Specialty Polymer segment continued its strong performance, with sustained demand for our marquee products despite the impact of US Trade Tariffs. Our IP protection has helped maintain both sales volumes and margins in this segment."

Outlook and Initiatives

The company is focusing on strengthening its specialty polymer portfolio and improving operational efficiency. Ester Industries is also advancing its circular economy vision through its joint venture, Ester Loop Infinite Technologies Private Limited (ELITe).

Key developments include:

1. ELITe entering into an agreement to acquire ~90 acres of project land in the PCPIR zone in Surat, Gujarat
2. Securing a multi-year offtake agreement with Nike as the anchor customer for the Infinite Loop India facility
3. Forming a strategic alliance with Hyosung TNC to convert high-purity, fully traceable Twist polyester into premium Regen performance yarns

Challenges and Opportunities

The Polyester Film segment faces pressure from imports and the impact of US Trade Tariffs. However, the company is optimistic about the growing demand for sustainable and recycled products. The significant growth in rPET sales volumes indicates a positive trend in this direction.

Ester Industries remains committed to creating value for shareholders through its focus on specialty products, operational improvements, and sustainability initiatives.

For more detailed financial information, investors are encouraged to review the full quarterly report.

Note: All financial figures are in Indian Rupees (₹).

Ester Industries Limited , a leading manufacturer of polyester chips and specialty polymers, has reported its financial results for the second quarter and half-year ended September 30, 2025. The company's performance shows a mixed picture with declining revenue but maintained profitability.

Key Financial Highlights

• Consolidated Revenue: The company's consolidated revenue from operations for Q2 FY26 stood at ₹354.19 crore, down from ₹338.20 crore in Q1 FY26 and up from ₹331.16 crore in Q2 FY25.
• Net Loss: Ester Industries reported a consolidated net loss of ₹15.78 crore for Q2 FY26, compared to a net loss of ₹7.16 crore in Q1 FY26 and a net profit of ₹3.02 crore in Q2 FY25.
• EBITDA: The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q2 FY26 was ₹18.07 crore, down from ₹29.16 crore in Q1 FY26.

Segment Performance

The polyester chips and film segment saw a slight increase in revenue, while the specialty polymers segment showed significant growth compared to both the previous quarter and the same quarter last year.

Fund Utilization Update

Ester Industries reported no utilization of proceeds during the quarter ended September 30, 2025, from its ₹174.99 crore preferential issue of convertible warrants. As of the end of Q2 FY26:

• ₹89.24 crore is still pending receipt from warrant holders.
• ₹16.80 crore was utilized at the beginning of the quarter for investment in the joint venture company Ester Loop Infinite Technologies.
• ₹15 crore allocated for general corporate purposes remains unused.

Management Commentary

Arvind Singhania, Chairman & CEO of Ester Industries Limited, commented on the results, stating, "While we face challenges in the current market environment, our focus remains on operational efficiency and strategic investments. The specialty polymers segment's growth is encouraging, and we continue to explore opportunities to strengthen our market position."

Outlook

Despite the current headwinds, Ester Industries maintains a cautious optimism for the future. The company's investment in its joint venture, Ester Loop Infinite Technologies, signals its commitment to long-term growth strategies. However, the unused funds from the preferential issue indicate a prudent approach to capital allocation in the current economic climate.

Investors and stakeholders will be watching closely to see how Ester Industries navigates the challenging market conditions and utilizes its available funds to drive growth in the coming quarters.