Ester Industries Q1 FY27 Results (NSE: ESTER)
Signal: Loss reversed
The read
The operating recovery accelerated: EBITDA margin expanded to 13.7% from 8.3%, the second consecutive YoY margin-expansion quarter after the Q2-Q3 FY26 contraction, with Film realizations and value-added mix driving the inflection; however, PAT of ₹18.62 crore was partly supported by other income equal to 41.6% of PBT, so recurring earnings quality still needs confirmation.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹432.16 Cr | 27.8% | N/A |
| EBIT | ₹41.08 Cr | 245.8% | |
| Net profit | ₹18.62 Cr | N/A | |
| EPS | ₹1.84 | N/A | |
| EBIT margin | 13.7% |
P&L walk
Consolidated revenue increased to ₹432.16 crore, +27.8% YoY, driven by higher Film realizations, increased value-added product contribution and higher throughput; EBITDA rose 103.6% to ₹59.38 crore and margin expanded 500bps to 13.7%, while EBIT grew 245.8% to ₹41.08 crore and PAT turned positive at ₹18.62 crore from a ₹7.16 crore loss, partly supported by other income equal to 41.6% of PBT.
Segments
Film was the clear growth engine, with revenue of ₹399.5 crore, +37% YoY, and value-added Film volume up 23% to 6,368 MT, while Specialty Polymers dragged with revenue down 32% to ₹32.7 crore and volume down 24% to 725 MT; its EBIT margin nevertheless improved to 45.3% from 31.7%.
Key positives
- Film revenue grew 37% YoY to ₹399.5 crore despite Film volume rising only 2.7% to 22,120 MT, indicating higher realizations and product mix improvement.
- Value-added and specialty Film volume increased 23% YoY to 6,368 MT and reached 29% of total Film sales, supporting the consolidated EBITDA margin expansion to 13.7% from 8.3%.
- Consolidated EBITDA rose 103.6% YoY to ₹59.38 crore, materially faster than revenue growth of 27.8%, with EBITDA margin expanding 500bps.
- rPET volume increased 19% YoY to 1,394 MT and revenue rose 24% to ₹17.5 crore, supported by structural demand from recycled-content requirements.
- The ELITe project secured an LOI for up to 15,000 MT per annum of Loop PET Fiber Grade resin under a multi-year framework before commercial start-up.
Key concerns
- Specialty Polymers volume fell 24% YoY to 725 MT and revenue declined 32% to ₹32.7 crore, leaving Film as the primary source of consolidated momentum.
- Standalone EBITDA grew only 25.2% to ₹40 crore with margin at 11.8%, materially below consolidated EBITDA growth of 103.6% and margin of 13.7%, making subsidiary/JV contribution important to the group recovery.
Earnings quality: includes non-operating other income
Research and educational content only. Not investment advice.