Filatex India Reports Strong Q2 FY26 Performance with Revenue Growth and Margin Expansion

Filatex India Limited, a leading polyester manufacturer, has reported a robust performance for the second quarter of fiscal year 2026, showcasing growth across key financial metrics and progressing well on its expansion plans.

Financial Highlights

The company reported a quarter-on-quarter revenue growth to INR 1,076.00 crores in Q2 FY26, up from INR 1,049.00 crores in the previous quarter. This growth was supported by an increase in sales volume, which rose to 101,391 metric tonnes from 97,263 metric tonnes.

Filatex India's profitability saw significant improvement:

EBITDA increased by 14.36% to INR 88.93 crores, compared to INR 77.76 crores in Q1 FY26.
Profit After Tax (PAT) grew by 16.8% to INR 47.58 crores, up from INR 40.74 crores in the previous quarter.

For the first half of FY26, the company's performance remained strong:

Revenue stood at INR 2,125.00 crores, slightly up from INR 2,103.00 crores in H1 FY25.
EBITDA showed substantial improvement, reaching INR 166.70 crores compared to INR 106.60 crores in the same period last year.
PAT nearly doubled to INR 88.32 crores from INR 45.77 crores year-on-year.

Expansion and Sustainability Initiatives

Filatex India is progressing well with its INR 650.00 crores investment plan, which covers capacity expansion, sustainability, and energy efficiency projects. Key highlights include:

Yarn Capacity Expansion: A INR 235.00 crores project is underway, with major machinery orders placed. The company expects completion by September 2026.
Recycling Project: Civil construction has begun, and major equipment orders have been placed. Production is scheduled to commence by September 2026.
Steam Infrastructure Project: Implementation is in progress with turbine orders placed and pipeline work advancing. The company anticipates completion by June 2026.
Renewable Energy Initiative: The company has signed an MoU with Torrent Power and is awaiting statutory approvals.
Automation in Post-Winding Operations: A INR 40.00 crores investment in automating labor-intensive processes like docking and packing of FDY and POY lines is underway, with equipment shipments expected to begin soon.

Industry Outlook and Management Commentary

Madhu Sudhan Bhageria, Chairman and Managing Director of Filatex India, expressed optimism about the company's performance and future prospects. He stated, "We are confident that we should do an EBITDA of around INR 80.00 crores to INR 85.00 crores in the recycled fiber business."

The management expects EBITDA margins to improve to 8.5% to 9% in the second half of FY26 from the current 7.84% in the first half. They also anticipate a margin improvement of around 2% when upcoming PTA capacity additions by GAIL and IOCL become operational.

Market Dynamics and Future Prospects

Filatex India is well-positioned to benefit from several industry trends:

The upcoming PTA capacity additions in India are expected to reduce dependence on imports and improve supply chain stability.
The company is exploring opportunities in recycled polyester, with plans to produce chips from waste materials.
Domestic demand for polyester yarn remains stable, with encouraging signs of recovery visible in the downstream textile value chain.

In conclusion, Filatex India Limited's strong Q2 FY26 performance, coupled with its strategic investments in capacity expansion and sustainability initiatives, positions the company well for future growth in the evolving polyester market landscape.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.42%	-6.55%	-4.23%	+12.88%	-15.75%	+286.21%

Filatex India , a leading polyester and polypropylene multifilament yarn manufacturer, has reported a remarkable financial performance for the second quarter of the current fiscal year. The company's results showcase significant growth across key financial metrics, indicating a strong recovery and improved operational efficiency.

Financial Highlights

Metric	Q2 Current Year	Q2 Previous Year	YoY Change
Net Profit	₹476.00 million	₹135.00 million	252.59%
Revenue	₹10.75 billion	₹10.50 billion	2.38%
EBITDA	₹826.00 million	₹415.00 million	99.04%
EBITDA Margin	7.67%	3.95%	372 bps

Key Takeaways

Profit Surge: Filatex India's net profit for the quarter jumped to ₹476.00 million, marking a substantial increase of 252.59% compared to ₹135.00 million in the same period last year.
Revenue Growth: The company's revenue grew to ₹10.75 billion from ₹10.50 billion year-over-year, representing a 2.38% increase.
EBITDA Performance: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) nearly doubled to ₹826.00 million from ₹415.00 million in the previous year, indicating improved operational efficiency.
Margin Expansion: The EBITDA margin expanded significantly to 7.67% from 3.95% in the previous year, suggesting enhanced profitability and cost management.

The robust quarterly performance of Filatex India reflects the company's ability to navigate market challenges and capitalize on growth opportunities. The substantial increase in net profit and EBITDA, coupled with margin expansion, indicates improved operational efficiency and potentially favorable market conditions for the polyester and polypropylene yarn industry.

Investors and market analysts may view these results as a positive indicator of the company's financial health and its potential for sustained growth in the coming quarters. However, it's important to note that future performance may be subject to various factors, including market dynamics, raw material costs, and overall economic conditions.