Ester Industries Reports Strong Q1 FY27 Performance with Revenue Growth and Margin Expansion
Gurugram, August 12, 2026: Ester Industries Limited, a leading manufacturer of Polyester Films and Specialty Polymers in India, has announced its unaudited financial results for the first quarter ended June 30, 2026. The company reported significant improvements in its operating environment, driving a substantial turnaround in performance across key metrics.Consolidated Total Income rose by 27.4% year-on-year (Y-o-Y) to ₹441.9 crore, while EBITDA more than doubled, increasing by 103.4% Y-o-Y to ₹58.9 crore. Consequently, the consolidated EBITDA margin expanded significantly to 13.3%, up from 8.3% in Q1 FY26. Profit After Tax (PAT) turned positive at ₹18.6 crore, a significant improvement compared to a loss of ₹7.2 crore in the corresponding quarter last year.
Financial Snapshot
The unaudited results for Q1 FY27 demonstrate strong revenue and profitability growth when viewed across both standalone and consolidated figures.Consolidated Financials (Rs.cr)
| Particulars | Q1 FY27 | Q1 FY26 | % Change | FY26 | FY25 | % Change |
|---|---|---|---|---|---|---|
| Total Income | 441.9 | 346.9 | 27.4% | 1,392.7 | 1,299.0 | 7.2% |
| EBITDA (including Non-operating income) | 58.9 | 28.9 | 103.4% | 110.6 | 163.9 | (32.5)% |
| Margins (%) | 13.3% | 8.3% | 500 bps | 7.9% | 12.6% | (470 bps) |
| PAT | 18.6 | (7.2) | N/A | (27.5) | 13.7 | N/A |
Standalone Financials (Rs.cr)
| Particulars | Q1 FY27 | Q1 FY26 | % Change | FY26 | FY25 | % Change |
|---|---|---|---|---|---|---|
| Total Income | 347.7 | 284.9 | 22.0% | 1,059.6 | 1,084.9 | (2.3)% |
| EBITDA (including Non-operating income) | 40.0 | 31.9 | 25.2% | 85.9 | 133.7 | (35.8)% |
| Margins (%) | 11.5% | 11.2% | 30 bps | 8.1% | 12.3% | (420 bps) |
| PAT | 14.5 | 9.6 | 50.5% | 4.4 | 40.5 | (89.2)% |
Performance Drivers and Industry Trends
Arvind Singhania, Chairman of Ester Industries, attributed the strong Q1 FY27 performance to an improving operating environment, higher realizations, increased throughput, and a favorable product mix leading to a significant financial turnaround. He highlighted that the operational improvement reflects the company's strategy and resilience, building confidence for future momentum.The management noted that the global industry is benefiting from China adopting an "anti-involution" policy—a campaign aimed at stopping destructive price wars and overcapacity by restricting predatory pricing and encouraging consolidation. This has substantially reduced surplus at predatory prices, helping improve margin profiles across industries.
For the BOPET Film industry, the operating environment continued to strengthen in Q1 FY27, shedding disruptions related to US tariffs and imports from China that were evident in FY26. Furthermore, management rules (PWMR) and the growing demand for post-consumer recycled (PCR) content are providing structural demand opportunities for rPET and recycled-content films.
Segment Highlights
Polyester Films:The company maintained operational efficiency, with consolidated capacity utilization reaching 84% in Q1 FY27, up from 82% in Q1 FY26. Film sales volume increased by 2.7%, moving from 21,531 MT to 22,120 MT. Simultaneously, Film revenue grew 37% Y-o-Y to ₹399.5 crores, supported by improved realizations and higher volumes of Value-Added Films (VAS).
Focusing on high-value products, VAS volumes increased by a significant 23%, rising from 5,180 MT in Q1 FY26 to 6,368 MT in Q1 FY27. rPET sales volume also increased by 19% Y-o-Y to 1,394 MT, with corresponding revenue increasing by 24% YoY to ₹17.5 crores.
Specialty Polymers:
The Specialty Polymers segment saw a decrease in sales volume from 954 MT in Q1 FY26 to 725 MT in Q1 FY27 (a de-growth of 24% Y-o-Y). Revenue decreased from ₹48.1 crores to ₹32.7 crores, registering a de-growth of 32% Y-o-Y. Despite these sales declines, the EBIT margin for this segment improved substantially, rising from 31.7% to 45.3% due to a better product mix.
Strategic Developments and Outlook
Ester Industries continues to strategically strengthen its Film portfolio by increasing the contribution of Value-Added (VAS) and Specialty products to enhance realizations, improve product mix, and reduce earnings volatility caused by industry demand-supply imbalances.Regarding the ELITE project, the company announced that it has secured a Letter of Intent from a leading global sports and athletic brand for Loop™ PET Fiber Grade resin. This agreement is part of a multi-year framework anticipating an offtake of up to 15,000 MT per annum from its upcoming Gujarat facility, providing strong visibility for the joint venture's recycled platform.
The company expressed confidence in its medium to long-term growth prospects, driven by improving industry conditions and regulatory tailwinds, maintaining a focus on premium and Value-Added products.
ESTER Stock Price Movement
Ester Industries Limited shares settled today by shedding 7.46% to close at ₹96.27 after a period of decline. The stock saw a traded volume of 595,516 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.
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