INDORAMA - Indo Rama Synth.

📊 NSE: INDORAMA 🏢 Textiles - Manmade 📅 Last Updated: 12/14/2025 8:02

💰 Financial Performance

Revenue Growth by Segment

Consolidated total income from operations for H1 FY26 reached INR 854.13 Cr, representing a 2.07% increase from INR 836.77 Cr in H1 FY25. Segment-specific revenue percentages were not disclosed in the available documents.

Profitability Margins

Standalone EPS for Q2 FY26 was INR 0.55, a 27.9% increase from INR 0.43 in Q2 FY25. H1 FY26 standalone EPS was INR 0.98, compared to INR 1.67 in H1 FY25, a decrease of 41.3% due to higher base effects in the previous year.

Capital Expenditure

Subsidiary BLS E-Services raised INR 309.29 Cr through a fresh issue of equity shares in February 2024. As of September 30, 2025, INR 13.84 Cr has been utilized for technology infrastructure and INR 0.05 Cr for organic growth initiatives.

Credit Rating & Borrowing

The company's credit rating is constrained by liquidity issues and volatility in crude oil prices, which impact debt servicing capabilities. Specific interest rate percentages were not disclosed.

⚙️ Operational Drivers

Raw Materials

Purified Terephthalic Acid (PTA) is the primary raw material, with a proposed procurement value of up to INR 800 Cr for FY 2025-26, representing approximately 10% of the company's consolidated turnover.

Import Sources

Thailand (sourced from TPT Petrochemicals Public Co. Limited).

Key Suppliers

TPT Petrochemicals Public Co. Limited, a group company of Indorama Ventures Public Company Limited.

Raw Material Costs

Raw material costs for polyester production are highly sensitive to crude oil price fluctuations. The company has proposed a material related party transaction of up to INR 800 Cr for PTA to ensure supply consistency.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is driven by the expansion of the BLS E-Services subsidiary (utilizing INR 309.29 Cr IPO proceeds for tech and BLS Stores) and the operationalization of two new wholly-owned subsidiaries: Indorama Sustainable Polymers and Indorama Sustainable Polyester Yarns, incorporated in December 2022.

Products & Services

Polyester chips, polyester yarns, Purified Terephthalic Acid (PTA), and E-Governance/Business Correspondent services through its subsidiary BLS E-Services.

Brand Portfolio

Indo Rama, BLS E-Services.

New Products/Services

Sustainable polymers and sustainable polyester yarns through newly incorporated subsidiaries currently preparing for operations.

Market Expansion

Expansion into the sustainable materials market and global footprint growth through the BLS E-Services subsidiary.

Market Share & Ranking

Indo Rama is one of the largest Indian polyester manufacturers with an established track record.

Strategic Alliances

Strategic partnership with Indorama Ventures Public Company Limited (Promoter Group) for raw material supply and technical support.

🌍 External Factors

Industry Trends

The industry is shifting toward sustainability and recycled materials. Indo Rama is positioning itself for this shift through its new sustainable polymer subsidiaries.

Competitive Landscape

Operates in a highly competitive global polyester market sensitive to commodity price cycles.

Competitive Moat

The company's moat is based on its massive scale of operations and the established track record of the Lohia family promoters, which provides competitive procurement and market access.

Macro Economic Sensitivity

High sensitivity to global crude oil prices and domestic economic conditions affecting the textile and polyester sectors.

Consumer Behavior

Increasing consumer demand for sustainable and eco-friendly textile products.

Geopolitical Risks

Exposure to trade and supply chain risks between India and Thailand due to heavy reliance on PTA imports from TPT Petrochemicals.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with pollution control norms and manufacturing standards for polyester production as per the Companies Act 2013 and SEBI LODR.

⚠️ Risk Analysis

Key Uncertainties

Crude oil price volatility (high impact on margins), liquidity constraints (medium impact on debt servicing), and the successful launch of new sustainable subsidiaries.