Ester Industries, a manufacturer of polyester films and specialty polymers, reported a 25.7% year-on-year increase in consolidated total income to INR 449 crore for the second quarter ended 30 September 2026. EBITDA rose 160% to INR 45.1 crore, and profit after tax (PAT) stood at INR 7.80 crore, compared with a loss of INR 15.8 crore in the corresponding quarter last year. The company attributed the performance to an improving operating environment, higher realizations, increased throughput and a favorable product mix. It released its unaudited standalone and consolidated results for the second quarter and half year ended September 30, 2026.
EBITDA margin expanded to 10% from 4.9% in Q2 FY26. The company said this reflected improved operating performance and a better business mix, with a higher contribution from value-added products in the film segment and better realizations across its portfolio.
Commenting on the results, chairman Arvind Singhania said, “The improvement witnessed in Q1 FY27 continued during Q2 FY27, with an improving operating environment, higher realizations, increased throughput and a favorable product mix.”
On the operating environment, Singhania said, “The operating environment for the BOPET film industry remained stable during Q2 FY27, with the US tariff-related disruptions witnessed in FY26 largely behind us. However, disruptions in crude oil supply and price fluctuations caused by the war in West Asia are resulting in higher shipping costs and longer transit times, which are adversely impacting the working capital cycle.”
In polyester films, consolidated capacity utilization rose to 92% in Q2 FY27 from 80% in Q2 FY26, supported by higher film production at both Ester Industries and Ester Filmtech. Film sales volume increased 13.9% to 24,291 MT from 21,329 MT, while film revenue rose 39.6% to INR 414.5 crore from INR 296.8 crore. The company said this was supported by improved per-unit realizations following an increase in feedstock prices, which are petrochemical products.
The company continues to focus on value-added and specialty (VAS) products. VAS volumes grew 25.8% to 6,200 MT from 4,927 MT in Q2 FY26 and accounted for 25.3% of total film sales volume. Sales volume of rPET increased 37.4% to 1,437 MT, while its revenue grew 51% to INR 18.4 crore.
In specialty polymers, sales volume fell 38.8% to 711 MT in Q2 FY27 from 1,161 MT in Q2 FY26. Segment EBIT margin remained healthy at 33.9%, compared with 37.0% in Q2 FY26. Singhania said one of the marquee products in the specialty polymers strategic business unit has seen demand erosion. He added, “Based on the strong product pipeline and the expected customer approval for a new product after marginal capital expenditure in the near future, we expect to partially make good the lost sales volume and margins.”
Singhania said, “Our performance reflects the strength of our strategy, the resilience of our business and our relentless focus. However, the global geopolitical environment remains uncertain, creating challenges for raw material costs and pricing visibility.”
Looking ahead, he said, “We remain confident about Ester’s medium- to long-term growth prospects, supported by improving industry conditions, favorable regulatory tailwinds and a continued focus on premium and value-added products. The increasing focus on differentiated products is expected to provide greater resilience across industry cycles and support sustainable margin improvement over the medium to long term. By focusing on operational efficiency, capacity utilization and advanced specialty products, the company remains committed to driving profitability growth and reducing its environmental footprint.”
On the ELITe project, Singhania said, “Various aspects related to implementation of the project by the last quarter of CY 2028 are progressing well, with acquisition of land expected to be completed by Q4 FY27. A marketing and offtake agreement with an anchor customer, coupled with a letter of intent secured from a global sports and athletic brand for Loop PET fiber grade resin under a multi-year framework for offtake from the upcoming Gujarat facility, would ensure that a significant portion of the planned capacity is committed ahead of commercial production.”
He added, “This early customer validation provides strong visibility for the joint venture’s recycled platform and underscores the growing demand for its value-added, sustainable product offerings.”
