Filatex India Limited , a leading polyester manufacturer, has reported a significant improvement in its financial performance for the first quarter of fiscal year 2026, along with ambitious expansion plans totaling approximately INR700 crore.

Financial Performance

For Q1 FY26, Filatex India reported:

• Revenue of INR1,049.00 crore, compared to INR1,054.00 crore in Q1 FY25
• Sales quantity increased to 97,263 metric tons from 95,962 metric tons year-over-year
• EBITDA grew by 27.75% to INR77.80 crore from INR60.90 crore
• Profit After Tax (PAT) rose 26% to INR40.70 crore from INR32.30 crore

The company's performance shows resilience in the face of challenging market conditions, with a notable improvement in profitability despite a slight dip in revenue.

Expansion Plans

Filatex India has announced multiple expansion projects with a combined investment of approximately INR700 crore:

These projects are expected to be completed by September 2026 and are projected to generate a combined annual EBITDA of INR230 crore.

Management Outlook

The management expects margins to improve gradually, targeting:

• Double-digit EBITDA margins by Q4
• Blended margins of 8.5-9% for the full year

The company acknowledged challenges from Chinese imports but noted that government measures through minimum import pricing have reduced imports by approximately 60%.

Investor Communication

As per the LODR data, Filatex India held an Earnings Conference call on July 24, 2025, to discuss the Q1 FY2025-26 results with investors and analysts. The transcript of this call has been made available to the stock exchanges, demonstrating the company's commitment to transparent communication with its stakeholders.

Conclusion

Filatex India's strong Q1 performance, coupled with its significant expansion plans, signals the company's confidence in the polyester market's growth potential. The focus on recycling and renewable energy projects also indicates a move towards more sustainable operations, which could position the company favorably in an increasingly environmentally conscious market.

Filatex India Limited, a leading manufacturer of synthetic filament yarns, has announced its financial results for the first quarter, showcasing resilience in profitability despite a slight dip in revenue.

Financial Highlights

The company reported a marginal decline in revenue from operations, which stood at Rs 1,049.40 crore in Q1, down 0.47% from Rs 1,054.34 crore in the same quarter last year. However, Filatex India demonstrated strong profitability growth:

• EBITDA rose by 27.68% year-on-year to Rs 77.76 crore
• Profit after tax increased by 26.17% to Rs 40.74 crore
• EBITDA margin improved to 7.41% from 5.78% in the corresponding quarter of the previous year

Operational Performance

The company's production volume for Q1 was 94,996 MT, compared to 97,580 MT in the same quarter of the previous year. Sales volume, however, increased to 97,263 MT from 95,962 MT in the same period last year.

Management Commentary

Mr. Madhu Sudan Bhageria, Chairman and Managing Director of Filatex India, commented on the results: "Demand and margin signs are improving gradually, and demand has been stable. In our assessment, as import volumes reduce in the coming months, the margins will continue to improve further."

He added, "Over the quarter, the performance was stable, and the EBITDA margins have slightly improved – up from Rs 75.7 crore to Rs 77.8 crore. Net profit remains almost the same as compared to last quarter. However, we have achieved substantial growth of almost ~26% in EBITDA and PAT compared to the same quarter of the previous year."

Company Overview

Filatex India operates with an annual manufacturing capacity of 4,17,240 MT, focusing on polyester filament yarn production across diverse end-user segments including apparel, home textiles, and industrial applications. The company's product portfolio includes:

Sustainability Initiatives

Filatex India is actively investing in sustainability initiatives, including:

1. Renewable energy sourcing: The company currently sources power from rooftop solar power plants at both its plants, with 1 MW at Dahej and 0.91 MW at Dadra, as well as 0.9 MW from a 3rd party hybrid wind solar plant.

2. Recycling facilities: Filatex is setting up recycling facilities for polyester waste with a capacity of 27,000 MTPA at Dahej.

Corporate Governance Updates

The Board of Directors has approved several key appointments and re-appointments, subject to shareholder approval:

1. Re-appointment of Shri Rajender Mohan Malla as an Independent Director for five years
2. Re-appointment of Shri Manish Vij as an Independent Director for five years
3. Re-appointment of Shri Madhu Sudhan Bhageria as Chairman and Managing Director for five years
4. Re-appointment of Shri Purrshottam Bhaggeria as Vice Chairman & Managing Director for five years
5. Re-appointment of Shri Madhav Bhageria as Managing Director for five years

Additionally, the Board has approved the appointment of M/s Siddiqui & Associates as Secretarial Auditor for five consecutive years from FY 2025-26.

As Filatex India continues to navigate the dynamic textile market, its focus on operational efficiency, sustainability, and strong governance practices positions the company for potential growth in the coming quarters.