Ester Industries Reports Q4 and FY26 Results, Driven by Sustainable Polymer Demand
Ester Industries Limited, a leading manufacturer of Polyester Films and Specialty Polymers, reported its unaudited financial results for the fourth quarter and the full fiscal year ended March 31, 2026. The company noted that the performance in Q4 FY26 was significantly better compared to both Q4 FY25 and Q3 FY26.Quarterly and Full Year Financial Performance
The company provided performance metrics for both standalone and consolidated financials.The standalone figures showed the following trends for Q4 and FY26:
| Particulars - Standalone (Rs.cr) | Q4 FY26 | Q4 FY25 | % Change | FY26 | FY25 | % Change |
|---|---|---|---|---|---|---|
| Total Income | 257.3 | 261.4 | (1.6%) | 1,059.6 | 1,084.9 | (2.3%) |
| EBITDA (including Non-operating income) | 25.6 | 36.2 | (29.3%) | 85.9 | 133.7 | (35.8%) |
| Margins (%) | 9.9% | 13.8% | (390 bps) | 8.1% | 12.3% | (420 bps) |
| PAT | 4.4 | 12.3 | (64%) | 4.4 | 40.5 | (89.2%) |
For the consolidated results, the performance metrics were:
| Particulars - Consolidated (Rs.cr) | Q4 FY26 | Q4 FY25 | % Change | FY26 | FY25 | % Change |
|---|---|---|---|---|---|---|
| Total Income | 345.1 | 321.9 | 7.2% | 1,392.7 | 1,299.0 | 7.2% |
| EBITDA (including Non-operating income) | 43.3 | 39.1 | 10.7% | 110.6 | 163.9 | (32.5%) |
| Margins (%) | 12.6% | 12.2% | 40 bps | 7.9% | 12.6% | (470 bps) |
| PAT | 7.9 | 2.0 | 301% | (27.5) | 13.7 | N/A |
Operational Performance and Market Drivers
Mr. Arvind Singhania, Chairman of Ester Industries, commented that the external operating landscape witnessed a significant turnaround during the quarter ended March 31, 2026. He pointed out that persistent headwinds that pressured the Biaxially-oriented Polyethylene Terephthalate (BOPET) Film segment throughout most of FY26 are gradually abating due to favorable regulatory and trade developments.While the US government imposed a global tariff of 10%, the Directorate General of Trade Remedies (DGTR) has since imposed anti-dumping duties on BOPET Film imports from China and other countries. The Chairman highlighted that a formal notification from the Ministry of Finance is expected to establish a level playing field and provide relief to domestic manufacturers.
The domestic BOPET Film industry experienced margin expansion during Q4 FY26. This was attributed to increases in global prices resulting from higher prices by Chinese producers, an inflationary geo-political situation, and rupee depreciation. Furthermore, the implementation of the Plastic Waste Management Rules (PWMR) accelerated demand for BOPET Films containing Post-Consumer Recycled (PCR) content and recycled PET (rPET).
This favorable trade environment contributed directly to the company's recovery and growth in Q4 FY26. Consolidated income for Q4 FY26 rose by 7.2% year-on-year to ₹345.1 crores. EBITDA increased by 10.7% to ₹43.3 crores, achieving a 12.5% margin. Excluding non-cash mark-to-market losses on foreign currency liabilities, the core operational EBITDA margins were at 15.5%. Profit After Tax (PAT) surged to ₹7.87 crores in Q4 FY26, showing a strong recovery from the ₹1.96 crores recorded in Q4 FY25.
For the full year 2026, consolidated income increased 7.2% to ₹1,392.7 crores, driven by robust growth in Specialty Polymers and rPET. The Board of Directors proposed a dividend of ₹0.25 per share for FY26.
Business Highlights
Polyester Films:- Consolidated capacity utilization reached 78% in FY26, compared to 74% in FY25.
- The BOPET Film sector saw margin expansion in Q4 FY26 due to increases in global prices, driven by Chinese producers, inflation, and rupee depreciation.
- Value-Added & Specialty Products (VAS) constituted 24% of the total sales volume in FY26.
- In volumetric terms, VAS products grew by 14.5% in FY26 despite adverse US volumes due to tariffs.
- Sales of rPET volumes increased substantially from 1,486 MT in FY25 to 5,325 MT in FY26, marking a 258% increase.
- RPET revenue rose approximately 3.6 times year-on-year, reaching ₹59.3 crores in FY26 from ₹16.2 crores in FY25, supporting demand for sustainable packaging.
- Chips revenue grew approximately 2.2 times year-on-year, reaching ₹65.7 crores in FY26 from ₹30.5 crores in FY25, primarily due to higher third-party sales volumes.
Specialty Polymers:
- The quantity of Specialty Polymers sold increased from 3,165 MT in FY25 to 3,836 MT in FY26, a growth of 21%.
- Revenue grew from ₹155.2 crores in FY25 to ₹179.3 crores, a growth of 16%.
- Specialty Polymers delivered better performance in FY26 across volumetric, value, and margin terms, although Q4 FY26 performance lagged year-on-year due to segment uncertainty.
The company also reported successfully securing ₹165.25 crores against its ₹175 crore share warrant issue, representing a substantial capital infusion.
ESTER Stock Price Movement
Today, Ester Industries Limited shares edged higher to close at ₹99.26, reflecting a gain of 0.89% for the day. The stock saw strong interest in the final hours, trading on a total volume of 244,307 shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.