Ester Industries Q2 FY27 Results (NSE: ESTER)
Signal: Loss reversed
The read
The recovery is continuing but has not yet stabilized: revenue accelerated to ₹44,076.08 lakh, +24.4% YoY, and gross margin expanded 263bps to 34.5%, yet EBITDA margin fell 336bps QoQ to 10.4% after 13.7% in Q1FY27 and PAT dropped 57.9% QoQ to ₹784.13 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹440.76 Cr | +24.4% | +2.0% |
| EBIT | ₹27.76 Cr | +53.7% | |
| Net profit | ₹7.84 Cr | N/M (loss to profit) | |
| EPS | ₹0.75 | N/M (loss to profit) | |
| EBIT margin | 10.4% |
P&L walk
Revenue reached ₹44,076.08 lakh, +24.4% YoY and +2.0% QoQ, with gross margin expanding to 34.5% from 31.9% YoY; EBITDA rose to ₹4,576.50 lakh and EBITDA margin to 10.4%, while PAT improved to ₹784.13 lakh from a ₹1,577.74 lakh loss but fell 57.9% QoQ from ₹1,861.82 lakh.
Segments
Polyester chips and film drove the group with ₹41,448.86 lakh of revenue and ₹3,450.13 lakh of segment result, while speciality polymers contributed ₹2,927.22 lakh of revenue and ₹1,480.93 lakh of result but declined 49.0% YoY in revenue; consolidated PAT of ₹784.13 lakh exceeded standalone PAT of ₹608.67 lakh.
Key positives
- Consolidated revenue reached ₹44,076.08 lakh, +24.4% YoY, with polyester chips and film revenue up 39.6% YoY to ₹41,448.86 lakh.
- Gross margin expanded 263bps YoY to 34.5% as raw material cost fell to 67.2% of revenue from 68.4%; the driver was not disclosed.
- EBITDA rose to ₹4,576.50 lakh from ₹1,806.57 lakh YoY, a +153.3% increase versus revenue growth of +24.4%, with EBITDA margin expanding 528bps to 10.4%.
- PAT recovered to ₹784.13 lakh from a ₹1,577.74 lakh loss YoY, and net debt reduced by ₹5,578.20 lakh from 31 March 2026.
Key concerns
- EBITDA margin declined 336bps QoQ to 10.4% from 13.7%, and PAT fell 57.9% QoQ to ₹784.13 lakh from ₹1,861.82 lakh.
- Speciality polymers revenue declined 49.0% YoY to ₹2,927.22 lakh, materially underperforming the group revenue growth of 24.4%.
- The gross-margin tailwind is not yet attributable to a disclosed structural driver, so its durability remains unconfirmed.
- Finance costs remained elevated at ₹1,718.96 lakh despite net debt of ₹56,835.45 lakh, keeping financing a significant drag below EBITDA.
Research and educational content only. Not investment advice.