FILATEX - Filatex India

📊 NSE: FILATEX 🏢 Textiles - Manmade 📅 Last Updated: 12/13/2025 22:05

💰 Financial Performance

Revenue Growth by Segment

Revenue from operations for Q2FY26 was INR 1,075.93 Cr, representing a 2.56% YoY growth and a 2.53% QoQ growth. H1FY26 revenue reached INR 2,125.33 Cr, up 1% YoY from INR 2,103.44 Cr.

Geographic Revenue Split

Exports contribute approximately 10-12% of overall sales, with the remaining 88-90% derived from the domestic Indian market.

Profitability Margins

Profitability showed significant improvement; Q2FY26 PAT was INR 47.58 Cr, up 253.16% YoY. FY25 Net Profit after tax was INR 134.57 Cr compared to INR 110.66 Cr in FY24.

EBITDA Margin

EBITDA margin for Q2FY26 improved to 8.27% from 4.36% in Q2FY25. Absolute EBITDA for Q2FY26 was INR 88.93 Cr, a 94.55% YoY increase driven by operational efficiencies and cost management.

Capital Expenditure

The company invested INR 20.00 Cr in its wholly-owned subsidiary, Texfil Private Limited, on November 14, 2025, to finance a Polyester Textiles Recycling Project. Historically, the company prepaid over INR 310 Cr in term loans between FY21 and FY23.

Credit Rating & Borrowing

CARE Ratings reaffirmed and subsequently withdrew ratings of CARE A+; Stable / CARE A1+ in July 2024. Finance costs for FY25 were INR 21.63 Cr, down from INR 29.11 Cr in FY24.

⚙️ Operational Drivers

Raw Materials

Purified Terephthalic Acid (PTA) and Mono-Ethylene Glycol (MEG) are the primary raw materials, which are crude oil derivatives and constitute nearly 85% of the total cost of production.

Import Sources

Raw materials are partially imported, though specific countries are not disclosed; the company utilizes non-fund-based limits for procurement.

Key Suppliers

Not disclosed in available documents, though the company maintains long-term relationships with large suppliers to secure better pricing and credit terms.

Capacity Expansion

Q2FY26 production capacity utilization resulted in 99,974 MT of output, up from 94,993 MT in Q2FY25. The company is currently expanding into recycling through the Texfil project.

Raw Material Costs

Raw material costs represent 85% of production costs. The company has a strategy of passing on price fluctuations to customers, though margins were impacted in FY23-24 by Chinese dumping.

Manufacturing Efficiency

Enhanced operational efficiencies contributed to a 14.36% QoQ growth in EBITDA during Q2FY26.

📈 Strategic Growth

Expected Growth Rate

5.10%

Growth Strategy

Growth will be achieved through the Polyester Textiles Recycling Project (Texfil), enhancing operational efficiencies, and capitalizing on the global shift toward synthetic fibers, which accounted for 96.2% of world fiber production growth over the last 16 years.

Products & Services

Synthetic fibers, specifically polyester yarns including chips, POY, DTY, FDY, and recycled polyester.

Brand Portfolio

FILATEX

New Products/Services

The company is launching a Polyester Textiles Recycling Project through its subsidiary Texfil Private Limited.

Market Expansion

The company is targeting the recycling segment to enhance its sustainable product portfolio.

Market Share & Ranking

Filatex is established as one of the largest players in the domestic Indian manmade yarn industry.

🌍 External Factors

Industry Trends

The industry is shifting toward synthetic fibers (5.10% CAGR) as natural fiber growth remains stagnant (0.42% CAGR). Recycled polyester is becoming a key focus area.

Competitive Landscape

Operates in a fragmented and competitive manmade yarn industry with significant pressure from large raw material suppliers and international importers.