ESTER - Ester Industries

📊 NSE: ESTER 🏢 Packaging 📅 Last Updated: 12/13/2025 21:58

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 7% YoY to INR 357.24 Cr in Q2 FY26. Specialty Polymers revenue grew 39% YoY to INR 57.36 Cr. Ester Filmtech Limited (EFL) revenue grew 20.5% YoY to INR 119.73 Cr. rPET revenue grew 271% from INR 3.27 Cr to INR 12.15 Cr.

Geographic Revenue Split

Not disclosed in percentage terms, but overseas margins were significantly impacted by US trade tariffs, while domestic margins were affected by heavy imports at predatory pricing.

Profitability Margins

Consolidated EBITDA margin was 4.85% in Q2 FY26, down from 12.8% in Q2 FY25. Net loss for the quarter was INR 15.78 Cr. Adjusted EBITDA margin (excluding forex/MTM losses) would have been 7.70% (INR 28 Cr).

EBITDA Margin

Consolidated EBITDA margin stood at 4.85% in Q2 FY26, representing a 59.2% YoY decrease from INR 42.47 Cr to INR 17.33 Cr. Standalone EBITDA margin was 5.33% (INR 14 Cr).

Capital Expenditure

INR 85 Cr was invested in a new extruder in Hyderabad which commenced production in late September 2025. The ELITe project involves a share warrant raise of INR 175 Cr, with INR 85 Cr already received.

Credit Rating & Borrowing

CRISIL A-/Negative/CRISIL A2+ (downgraded from CRISIL A/Negative/CRISIL A1 in Dec 2023). Yearly debt obligations are INR 80-90 Cr over the medium term.

⚙️ Operational Drivers

Raw Materials

PTA (Purified Terephthalic Acid) and MEG (Monoethylene Glycol) are primary virgin materials. The ELITe project will utilize cheap textile waste as raw material.

Import Sources

Not specifically disclosed by country, but PTA and MEG are benchmarked to international pricing, and heavy imports of finished films are noted from overseas.

Capacity Expansion

Current capacity includes a 48,000 MTPA plant in Telangana (EFL). A new extruder in Hyderabad was commissioned in September 2025. The ELITe project is a major upcoming expansion in JV with Loop Industries.

Raw Material Costs

Raw material costs for PTA and MEG are benchmarked to international prices. ELITe project aims to reduce costs by using textile waste instead of virgin materials.

Manufacturing Efficiency

EFL reported a 39.7% YoY growth in sales volume, reaching 10,374 MT in Q2 FY26. Capacity utilization ramping up at the Telangana plant is a key monitorable.

📈 Strategic Growth

Growth Strategy

Strategy focuses on strengthening the Specialty Polymer portfolio (39% YoY revenue growth), improving operational efficiency, and advancing the circular economy vision through the ELITe JV project with Loop Industries.

Products & Services

BOPET Thin Films, Specialty Polymers, rPET (recycled Polyester), Polyester Chips, and Polyester Films for packaging, industrial, and consumer applications.

Brand Portfolio

Ester Industries, Ester Filmtech Limited (EFL), Ester Loop Infinite Technology Limited (ELITe).

New Products/Services

rPET revenue grew to INR 12.15 Cr. New extruder in Hyderabad started production in Q2 FY26. ELITe project will produce sustainable polyester from textile waste.

Market Expansion

ELITe project targets 100% exports to international markets. Specialty Polymers segment grew 39% YoY despite trade barriers.

Market Share & Ranking

Established market position in packaging films. India's BOPET Thin Film market is estimated at 1350 KT for 2025.

Strategic Alliances

Joint Venture with Loop Industries for the ELITe project (Ester Loop Infinite Technology Limited) with a 50:50 equity contribution stage-wise.

🌍 External Factors

Industry Trends

Shift toward circular economy and sustainability (PWMR rules). Industry currently faces a demand-supply imbalance leading to margin pressure (EBITDA down 59.2% YoY).

Competitive Landscape

Intense competition from domestic players and heavy imports at predatory pricing levels.

Competitive Moat

Moat built on a diversified product profile (Specialty Polymers + Films) and long track record. Sustainability-led ELITe project using textile waste is intended to create a long-term cost advantage.

Macro Economic Sensitivity

Highly sensitive to global demand-supply scenarios in flexible packaging and international crude-linked raw material prices (PTA/MEG).

Consumer Behavior

Increasing demand for sustainable packaging solutions, evidenced by rPET revenue growing from INR 3.27 Cr to INR 12.15 Cr.

Geopolitical Risks

US Trade Tariffs are a major risk, currently impacting overseas margins in the Specialty Polymers and Film segments.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to Plastic Waste Management Rules (PWMR) and international trade regulations like US Trade Tariffs.

Environmental Compliance

Focus on Plastic Waste Management Rules (PWMR) and circular economy through the ELITe project.

⚠️ Risk Analysis

Key Uncertainties

Adverse demand-supply scenario in flexible packaging (margins down to 4.85%). Volatility in PTA/MEG prices. Successful ramp-up of new Telangana and Hyderabad capacities.