FY 2025-26 reflected a mixed operating environment. The Companys performance was supported by growth in specialty polymer, specialty films and recycled PET (rPET), even as commodity film margins remained under pressure.
Polyester Films operated through a weak global BOPET cycle, with oversupply and pricing pressure affecting margins. Additionally high US tariffs and dumping of cheap Chinese imports for most part of the year adversely affected industry economics in India. Specialty Polymer delivered strong profitability, while rPET revenue scaled sharply.
Management focused on protecting core film volumes, improving the value-added product mix, maintaining cost discipline, and supporting growth in specialty products and recycling. These priorities are reflected in the business performance and outlook discussed below.
Segment Volume Movement (FY 2025-26 vs FY 2024-25) (Refer to the bar chart in the source document on page 38)
Executive Snapshot
| Area | FY 2025-26 position | Management focus |
| Polyester Films | Revenue increased 6.1% to \u20b9 1,196 crores in FY 2025-26 from \u20b9 1,127 crores in FY 2024-25, while EBIT declined to \u20b9 47.0 crores in FY 2025-26 from \u20b9 93.0 crores in FY 2024-25 due to soft global BOPET markets and also because of non-cash MTM losses on foreign currency loans to the tune of \u20b9 37.4 crores in FY 2025-26 | Improve VAS mix, reprice export markets and prepare for recovery as industry utilisation improves. |
| Specialty Polymers | Revenue grew about 16% to \u20b9 179.3 crores in FY 2025-26 from \u20b9 155.2 crores in FY 2024-25 and EBIT increased to \u20b9 58.7 crores in FY 2025-26 from \u20b9 57.1 crores in FY 2024-25 | Scale high margin specialty products and value-added products to improve profitability and operating leverage, deepen technical service-led customer engagement and expand domestic and global partnership to deliver growth |
| rPET | Revenue increased to \u20b9 59.3 crores (FY 25-26) from \u20b9 17.7 crores. (FY 24-25) Volume increased to 5,325 MT from 1,486 MT (FY 25-26 vs FY 24-25), a 3.6x increase | Scale up Hyderabad operations, deepen brand approvals for recycled-content packaging demand |
Polyester Films revenue increased 6.1% to ?‚? 1,196 crores (FY 25-26) from ?‚? 1,127 crores in FY 2024-25.
1. Films EBIT for FY 2025-26 stood at ?‚?47.0 crores against ?‚?93.0 crores in FY 2024-25, a decline of approximately 49% that was driven almost entirely by the industry-wide margin pressure rather than by any deterioration in volumes or operating performance. Volume increased to 80,517 MT in FY 2025-2026 from 76,580 MT in FY 2024-25.
2. With the Plastic Waste Management Rules mandating recycled content in flexible plastic packaging, Category II flexible packaging is expected to carry a 10% recycled-content requirement for FY 2025-26 and FY 2026-27, rising to 20% from FY 2027-28. Demand for value added PCR BOPET film has been on the rise, and compliance enforcement by the government is expected to tighten progressively. The Company is fully equipped with technology and certifications in place to supply BOPET films across varied PCR content levels and is well positioned to capture this growing demand.
3. During the year, the Company scaled its PCR films to an monthly run rate of 200 MT, up from an average of around 20 MT in the previous year.
Polyester Films Performance (Refer to the bar chart in the source document on page 39)
Operational Measures
1. The organization focused on cost-saving initiatives driving production efficiency optimization and procurement cost savings. These resulted in significant and sustainable cost savings.
2. The export book was proactively redirected through FY 2025-26 to absorb the impact of changes in US tariffs.
3. Production lines continued to be progressively repositioned toward value-added specifications. New VAS grades developed and ramped through the year included Seal Peel, Ultra High Heat Seal, Silicone Release Liner, Black Film and a flame-retardant (FR) grade.
Product Pipeline and Innovation Excellence
Specialty Polymer delivered strong performance across both topline and profitability metrics, supported by patented products and application-led customer engagement.
Specialty Polymer remained the strongest profit contributor. Revenue increased by approximately 16% to ?‚? 179.3 crores in FY 2025-26 from ?‚? 155.2 crores in FY 2024-25. EBIT increased to ?‚? 58.7 crores in FY 2025-26 from ?‚? 57.1 crores in FY 2024-25, with EBIT margin at 32.7% in FY 2025-26.
Specialty Polymers Performance (Refer to the bar chart in the source document on page 39)
The focus for Specialty Polymer is to scale high margin specialty products while also focusing on increasing value-added products to improve capacity utilization and operating leverage.
Overall the volume increased from 3165 MT in FY 2024-25 to 3836 MT in FY 2025-26 a growth of 21% Y-O-Y.
The high-margin specialty grades continued to scale, with volumes increasing to 3,121 MT in FY 2025-26 from 2,808 MT in FY 2024-25, a growth of 11% year on year.
Value-added product volumes increased to 715 MT in FY 2025-26 from 357 MT in FY 2024-25 almost a 2x jump.
International Partnerships: Selected international partnerships are being pursued to improve market penetration in export markets.
The new Hyderabad rPET line became operational during the year and is currently focused on volume ramp-up, complementing the Sitarganj recycling operations. Built at a capex of ?‚? 50 crores with an annual capacity of approximately 20,000 MT the line uses state-of-the-art European recycling technology.
The Sitarganj line delivered consistent throughput and cost efficiency through operational and capital-expenditure initiatives.
rPET Revenue and Volume Scale-up (Refer to the bar chart in the source document on page 40)
rPET supports the Companys sustainability-linked packaging offering. It also strengthens the Companys ability to serve customer seeking circular packaging solutions across films and polymer.
The Company has established itself as a preferred supplier of bottle grade rPET chips to leading consumer brands in India. This rigid packaging offering complements the flexible packaging offering that Ester has been providing to these brands for year.
The Company enter Financial Year 2026-27 with a materially more diversified earnings base. The Films business sustained stable revenue through the soft global markets and geopolitical turbulence.
Specialty Polymer continued to grow its premium-margin portfolio while scaling value added products, and rPET revenue and volumes increased sharply.
The VAS films portfolio saw a significant jump despite tariff induced market loss in USA. The robust portfolio of new VAS products in films and specialty polymer are in place to further increase the growth of high margin products.
Together with the supply-side recovery now building within the BOPET cycle, these developments position the business for improved returns in the year ahead.
Forward-Looking Statement This market outlook contains forward-looking statements based on current expectations and projections about future events. These statements are subject to risks, uncertainties and assumptions, including but not limited to changes in raw material economics, trade policy, freight and geopolitical conditions.
Global BOPET demand is forecasted to grow from 6.35 million tonnes in 2025 to 8.12 million tonnes in 2030, an addition of 1.76 million tonnes at 5.0% annually (Wood Mackenzie). The addition concentrates in thin film by film type, in food packaging by end use, and in Asia by region, and Ester operates at the intersection of all three.
Breakup by film type and end use: (Refer to the chart in the source document on page 41)
The market splits into thin film (below 50 microns) and thick film. Thin film grows from 5.15 to 6.65 million tonnes, at 5.3% a year. Thick films grow at 3.9%.
Thin film is 81% of the market today and accounts for 1,509 kt of the total global demand addition of 1,764 kt between 2025 and 2030, or 86% of the growth.
Food packaging is the largest of the pie, at 2.76 million tonnes in 2025. It is also the fastest growing, at 5.9% a year. It adds 912 kt by 2030, or 52% of the total market addition of 1,764 kt.
Food is a recurring-consumption pool. Its needs for barrier, sealing and shelf life keep rising. The value of film therefore comes less from tonnage and more from the work the film does inside the laminate.
Asia takes 91% of the thin-film addition Thin BOPET demand by region, Mt; pool grows 5.15 to 6.66 Mt (5.3% CAGR) (Wood Mackenzie) (Refer to the chart in the source document on page 41)
Asia grows from 4.11 to 5.49 million tonnes, contributing 1,380 kt of the 1,509 kt pool addition, or 91%; North America, Europe and other regions together add the remaining 129 kt. Within Asia, India leads all regions at 8-10% a year, driven majorly by FMCG expansion (Wood Mackenzie, Internal Estimates).
Overall Asias growth is driven by rising packaged-food penetration, higher household consumption and manufacturing scale - and because a large share of both demand and capacity is concentrated in the region, Asian operating rates and export flows set standard-film pricing. North America and Europe, by contrast, grow slowly in tonnage but reward different attributes: differentiation, food-contact compliance, overall delivered cost, traceability and security of supply carry greater weight in the buying decision, and competition there is won through application approval and service.
Indias thin-film BOPET balance for Financial Year 2025-26 reconciles in one line. Domestic demand of 920 kt, plus exports of 215 kt, less imports of 85 kt, equals production of 1,050 kt. Installed capacity is about 1,350 kt. Production against capacity gives an operating rate approaching 80%.
The global thin-film industry runs at an implied rate of about 52% (Wood Mackenzie). India runs far tighter. A high operating rate does not by itself assure margins; those also depend on regional pricing, trade flows and product mix. It does show that Indian capacity is being absorbed, by domestic consumption and by exports.
Indias thin-film balance reconciles at an operating rate approaching 80% FY2025-26, kt - 920 domestic demand + 215 exports - 85 imports = 1,050 production (Refer to the chart in the source document on page 42)
Indias FMCG market reached approximately ?‚? 25 lakh crores (US$289 billion) in 2025, with revenue growth estimated at 6 to 8% for FY 2025-26 (IBEF). Underlying volumes grew 5 to 6% through 2025. (NielsenIQ, India FMCG Quarterly Snapshot). The market is large, growing, and inflating; the question for film is which part of that growth converts into demand.
Three structural shifts convert this growth into film demand. All three point the same way.
Smaller packs: unit growth ran ahead of volume growth in every reported quarter of 2025 (Nielsen IQ). This indicates consumer shift to smaller pack sizes. More packs means more film. Rural leadership: rural markets have outpaced urban for the past 2 year. Rural demand runs on affordable price points, served by sachets and small formats. Channel shift: e-commerce holds only 11 to 13% of FMCG value in the metros, although small in size but disproportionately important for growth. Because online assortments are far wider than in-store ranges, e-commerce multiplies SKUs and pack formats; more formats mean more film.
The reading for film demand is direct. Film follows packs, not rupees. Each of the three shifts raises the number of packs, the packaging surface area and the converting runs required for a given quantity of consumption. The film intensity of Indian FMCG is therefore rising.
(Refer to the infographic in the source document on page 42)
Indias FMCG market is growing, creating demand for more packaging. This is reflected in the wider packaging market, which is expected to increase from ?‚? 5.40 lakh crores in FY2025 to ?‚? 8.26 lakh crores by FY 2030, growing at 8.9% a year.
Within this market, flexible plastic packaging is growing even faster. Its value is expected to rise from ?‚? 1.46 lakh crores to ?‚? 2.30 lakh crores over the same period, representing annual growth of 9.5% (Avendus Capital). This adds about ?‚? 0.84 lakh crores in five year - an increase of nearly 60%.
The runway also has structural depth. Per-capita plastic packaging consumption in India is approximately 16 kg (vs 70-100 Kg in developed markets) indicating an early stage of the consumption cycle with considerable headroom (Avendus Capital).
Flexible plastic outgrows the packaging market India, ?‚? lakh crore, FY2025 ?†’ FY2030 (Refer to the chart in the source document on page 43)
This makes the direction of the market very clear: FMCG is growing, the packaging market is expanding and flexible formats are gaining share. Together with the shift towards smaller packs this creates a positive demand environment for packaging film and supports the absorption of new Indian capacity.
Global nameplate capacity for thin BOPET film was approximately 9.98 million tonnes in 2025, compared with demand of 5.15 million tonnes. This implies industry utilisation of about 52% (Wood Mackenzie).
Capacity additions slow from here. Thin-film capacity is expected to reach only about 10.3 million tonnes by 2030, while demand continues to grow. As a result, utilisation rises above 60% by the end of the decade.
The industry therefore has enough capacity to meet medium-term demand, and a broad shortage of standard film is unlikely. However, slower capacity additions should gradually reduce spare capacity and improve the balance between supply and demand. This will support better pricing and margins.
Nameplate capacity and its utilization % (Refer to the chart in the source document on page 43)
PET resin, the primary raw material for BOPET films, is derived from PTA and MEG, both of which are linked to global crude-oil prices as well as their own supply-demand dynamics. Resin cost remains the single largest component of film production cost; on most occasions, the industry has been able to pass through fluctuations in PET resin costs to customer.
PTA demand grew 3.6% and MEG demand 3.4% in FY2025-26, while capacity additions grew faster still - and the clearest evidence of that oversupply lies in producer economics. The product-to-feedstock spread, a directional measure of what an intermediate producer earns over its principal feedstock, narrowed by 9.8% for PTA-paraxylene and by 0.6% for MEG-naphtha during FY2025-26 (Wood Mackenzie; annual disclosures of a leading integrated oil-to-chemicals producer). For the film industry, compressed upstream spreads carry two messages:
?‚? Feedstock is a buyer market: availability is secure and resin pricing competitive through the outlook period.
?‚? The compression sits upstream of film - weak intermediate margins should not be read across into film economics, where returns are determined by operating rates, trade flows and product mix.
PTA and MEG: supply ample, spreads compressed (Refer to the chart in the source document on page 44)
For BOPET, feedstock availability is not the base-case constraint. The margin implications differ by product tier:
Specialty-film markets reward innovation, application development and technical expertise. Ester has strong R&D capabilities, supported by its experience in coating, metallising, holography and functional-film development. These capabilities allow the company to develop films for specific customer applications rather than compete only on capacity and price.
Specialty BOPET films include barrier and metallised films, sealable films, coated and holographic films, release liners, electronic films and recycled-content structures. These products perform functions that standard films cannot.
Transparent-barrier and metallised films are growing at 6.4% and 7.5% annually, compared with 5.3% for thin BOPET. Demand is also rising for coated films, release liners, electronic films and PCR structures (Wood Mackenzie; Grand View Research).
The table below shows how competition changes across these segments. Moving down the table, growth increases, effective supply narrows and competition shifts from capacity to capability.
| Film Segment | Growth or demand signal | What limits effective supply |
| Standard transparent | 5.3% thin BOPET | Many lines can produce it; competition is based mainly on cost and scale |
| Metallised/high barrier | 6.4-7.5% broader pools | Requires consistent barrier performance, adhesion and process control |
| Coated/sealable/ functional surface | Converter-approval led | Must perform consistently on customer packaging and converting lines |
| PCR/circular structures | Regulation-led adoption | Resin variability, traceability, certification and compliance requirements |
The next phase of the BOPET industry will be shaped by how quickly new capacity is absorbed and how responsibly producers manage operating rates, product mix and regional trade flows. Demand conditions remain constructive, particularly in Asia and India, but sustainable improvement in industry profitability will also depend on operating discipline, freight economics and the quality of FMCG growth- especially changes in pack count, pack sizes and distribution channels. Within this broader market environment, Esters strategy is to increase its focus on specialty and value-added films, where technical capability, application development and customer approvals can provide greater differentiation from standard products. These industry and company-specific factors together will determine the pace and quality of improvement over the coming year.
Segment Positioning Specialty Polymers is anchored by an IP-protected portfolio of marquee products and a deep R&D pipeline. The product and customer base is now far more diversified across geographies. High-specialty products are being scaled alongside value-added products (VAP). VAP builds operating leverage on existing assets and de-risks the segment from dependence on few products and customers. The franchise operates across four end-use domains: BOPET film resins, consumer electronics, carpets and technical textiles.
The growth of value-added specialty films is creating demand for specialty resins and masterbatches. Lidding, barrier, metallised, coated, PCR-compatible and recycle-ready films require better sealability, clarity, heat resistance, barrier performance and processing stability.
These requirements are often built into the resin or masterbatch stage. This creates an opportunity for specialty resin solutions linked to the BOPET film value chain. The detailed market outlook for specialty films has been covered in the Films section. For Specialty Polymers, the key point is that growth in value-added films supports demand for specialty resin solutions.
Demand for compact, connected and heat-sensitive electronic devices is rising across consumer electronics, AI-enabled equipment, 5G infrastructure, connectors and wearables. As devices become smaller and more power-dense, standard plastics are increasingly inadequate for applications that need heat resistance, flame retardancy, dimensional stability and long-term reliability.
This is increasing the need for engineering polymers such as PBT and allied polyester co-polymers. The global consumer electronics market is projected to grow at around 6% CAGR, while Indias consumer electronics market is expected to grow at around 6.8% CAGR, supported by digital adoption, rising disposable incomes, localisation of electronics manufacturing and growth in connected devices [Source: Grand View Research].
Esters Specialty Polymers portfolio includes PBT and allied co-polymers. These materials are positioned for applications where thermal stability, flame safety and reliability are critical. As electronics manufacturing grows and device designs become more demanding, the need for such engineering polyester grades is expected to increase.
Demand for durable, stain-resistant and sustainable flooring is rising. Nylon continues to be used in premium residential and commercial carpets because of its durability. Polyester is also gaining relevance because of its dyeability, stain resistance and cost advantage.
The global carpet and rug market, valued at approximately USD 60 billion in 2025, is projected to reach USD 114 billion by 2033, growing at a CAGR of around 7.1% (2026-33) [Source: Grand View Research]. Nylon remains the largest fibre segment, accounting for over 41% of market revenue, while polyester is the fastest-growing material.
Ester supplies polyester raw materials for use in nylon-based and polyester based commercial carpets, enabling hybrid constructions that combine durability with sustainability. Esters customizable polymers offer multiple benefit: regulatory compliance and performance enhancement for both backing and fiber systems.
Demand for functional textiles is rising across industrial fabrics, protective textiles and non-woven. These applications need tenacity, flame safety, barrier properties, dyeability and durability. Polyester remains an important platform because it is scalable, cost-effective and adaptable.
Indias technical textiles market has grown at approximately 8-10% annually in recent years and, at around USD 25 billion, is among the five largest globally. The global technical textiles market, estimated at approximately USD 206 billion in 2024, is projected to reach USD 272 billion by 2030, representing a CAGR of around 4.8% during 2025-30.
The sector is also supported by government initiatives such as the National Technical Textiles Mission and the Production Linked Incentive Scheme for Textiles, which has an outlay of ?‚? 10,683 crores and covers man-made fibre apparel, fabrics and technical textiles. Guided by the Governments "5F" vision - Farm to Fibre to Factory to Fashion to Foreign - Indias overall textile and apparel sector, estimated at nearly USD 190 billion in FY2025-26, is targeted to reach USD 350 billion by 2030. This broader expansion, together with the shift towards higher-performance applications, is expected to support demand for specialty polymers that build functionality into fibres and textile materials and enable consistent performance in demanding applications.
[Sources: Ministry of Textiles; Grand View Research]
Outlook Four structural forces underpin a multi-year demand runway across all domains: Premiumisation, the carpet growth and textile functionalisation. The Company will scale both high-specialty and value-added products, recognising their longer gestation. This is consistent with its ambition of becoming a diversified, IP-led specialty producer.
Strategy and Execution Priorities: The 5G Model
The Companys strategic framework is built around the 5G Model:
(Refer to the 5G model graphic in the source document on page 46)
This framework aligns Esters long-term ambition with its key execution priorities across value-added products, Specialty Polymers, innovation, cost discipline, manufacturing reliability, people, digital transformation and sustainability.
The priority is to improve margins and business resilience through a higher share of specialty products, better Specialty Polymer utilisation, tighter cost control, stronger manufacturing reliability, faster product commercialisation and a deeper circular-economy offering.
Long-Term Ambition To build sustainable higher EBITDA margins, increase customer stickiness and strengthen Esters global competitiveness.
| 5G Pillar | Strategic Focus |
| Growth | Ramp-up of high-potential businesses |
| Gain | Higher-margin and value-added product mix |
| Granularity | Innovation excellence, technical services and customer-specific solutions |
| Guardrails | Cost discipline and manufacturing reliability |
| Green | Sustainability-led growth and circular economy |
Execution Priorities The 5G Model is supported by the following execution priorities:
01 VALUE-ADDED SPECIALTY GROWTHAccelerating high-margin specialty film sales and innovation.
02 SPECIALTY POLYMER SCALINGImproving utilisation, broadening the product mix and expanding global reach.
03 INNOVATION EXCELLENCEStrengthening R&D, patents, product pipeline and customer-led development.
04 COST OPTIMISATIONImproving recurring savings across operations, sourcing, energy and utilities.
05 MANUFACTURING EXCELLENCEEnhancing reliability, TPM, quality, safety and specification discipline.
06 PEOPLE-CENTRIC CULTUREInvesting in talent, leadership development and employee engagement.
07 DIGITAL TRANSFORMATIONBuilding a data-driven and process-efficient operating model.
08 SUSTAINABILITY AND CIRCULARITYAdvancing renewable energy, resource efficiency, rPET and ELITE.
Shifting toward value-added specialty films is central to Esters strategy to reduce cyclicality in the films business and enhance margins. The Company is leveraging its established expertise in specialty polyester films to increase the share of high-value-added products in its films portfolio.
Value-added specialty products currently account for approximately 25% of film volumes. Over the next 2-3 years, the Company aims to increase this share to 60%+, thereby reducing dependence on commodity film cycles and positioning Ester as a more specialty-led film producer.
To achieve this transition, we plan to build around three priorities:
Building a Strong Domestic and Export Pipeline: Ester has developed a strong opportunity pipeline across both domestic and export markets. The Company has also strengthened its sales, marketing and application development teams across key geographies to identify, develop and convert these opportunities. This expanded market reach is expected to support faster scale-up of specialty film products and improve Esters participation in higher-value applications.
Accelerating Product Innovation: Product innovation remains at the core of the value-added films strategy. Esters R&D pipeline is focused on next-generation specialty films for industrial, packaging and functional applications. Current and planned development areas include Seal Peel films, Ultra High Heat Seal films, Silicone Release Liners, Black Films, flame-retardant films, AlOx high-barrier films and Shrink PET sleeve-label films.
Expanding Downstream Capabilities: The Company is investing in downstream assets to widen its specialty film portfolio and capture more value from the films business. Planned and ongoing investments in metallizing and other downstream capabilities will enable Ester to offer more differentiated products, improve customer stickiness and participate in applications where functionality, consistency and technical support are critical.
These products are targeted at applications where customers require enhanced sealing performance, barrier properties, release characteristics, heat resistance, flame retardancy, aesthetics or converting efficiency. As the portfolio scales, value-added specialty films are expected to become a larger contributor to film margins and improve the resilience of the overall business.
Parallel to our films business, we continue to scale our Specialty Polymers segment as a differentiated, innovation-led growth platform. The segment is built on deep polyester chemistry expertise, customer-specific product development, patented technologies and a broad portfolio of application-led products.
Our strategy for Specialty Polymers is two-fold: first, to scale high-barrier specialty products where Ester has strong technical capabilities and limited competition; and second, to broaden the product mix with value-added polymer products that improve asset utilisation, strengthen cash flows and expand the customer base.
Scaling High-Barrier Specialty Products High-barrier specialty products remain the core focus of the business. These products require long development cycles, customer validation, technical service support and consistent quality, creating entry barriers. Ester is focused on increasing both the volume and value of sales from these products, supported by a robust new product pipeline.
The Company is also pursuing select international partnerships to improve market penetration in export markets. These partnerships are expected to help Ester access high-potential geographies, strengthen customer reach and accelerate commercialisation of specialty products outside India.
Broadening the Specialty Polymer Mix While high-specialty products remain central to the strategy, the Company is also scaling value-added polymer products to better utilise existing assets and improve cash generation. These products may carry lower margins than marque high-specialty products, but they generate better returns than virgin PET and help improve operating leverage.
This broader product approach reduces dependence on a limited set of products and customers, while creating a larger base for sustained growth. The objective is to build a larger, more resilient business with stronger absolute earnings and cash flows.
Innovation, Technical Services and Customer Co-Development Innovation remains central to the Specialty Polymers strategy. Investments in R&D, application development and technical service capabilities are enabling faster product development and closer collaboration with customer teams. Esters technical service teams work directly with customer R&D and manufacturing teams to co-develop tailored solutions, improve product performance and support long-term customer engagement.
This collaborative model is especially important in specialty applications, where customers require materials that meet specific performance needs such as dyeability, flame retardancy, heat sealability, processability, hydrolytic stability, recycled-content compatibility and end-use durability.
Key Growth Platforms The key growth platforms for Specialty Polymers are specialty PET products originating from specialty resins and masterbatches for the BOPET film industry, and textile-related specialty products. These platforms are aligned with structural industry trends including sustainable packaging, higher-value BOPET film applications, functional textiles and performance-led material substitution.
With a strong innovation pipeline, select global partnerships, improving asset utilisation and a more balanced product portfolio, Specialty Polymers is well positioned to remain a key value contributor in Esters long-term growth journey.
Cost optimization remains a key lever for improving margins, strengthening competitiveness and building a leaner operating base. The Company is running this as a structured plant-and function-level programme, with quarterly reviews and a focus on recurring savings across process efficiency, automation, raw-material usage, logistics, packaging, energy and utilities.
Indigenisation and Strategic Sourcing Indigenisation is an important focus area within the programme. The Company is developing domestic sources for critical inputs, supported by alternate vendor development, competitive bidding, improved procurement processes and value engineering. These initiatives are aimed at reducing input costs, lowering import dependence, improving lead times and strengthening supply-chain resilience.
Energy and Utility Savings Energy efficiency continues to be a major cost and sustainability lever. Solar power arrangements are in place, with the Hyderabad contract signed and benefits expected from current fiscal year. Further opportunities for renewable energy adoption are also being actively explored across facilities.
War on Waste Across the organisation, the Company is driving a focused "War on Waste" agenda to reduce process waste, improve material recovery and convert usable waste streams into reusable inputs wherever possible.
Together, these actions will continue to further improve throughput, reduce waste and create a more agile operating base. This becomes especially important as the Company increases the share of specialty and value-added products, where cost discipline, reliability and specification control are all critical.
Innovation is one of Esters core competitive strengths. It supports the Companys transition from a conventional polyester business to a technology-led materials company, with a growing focus on Specialty Polymers, value-added films, recycled polyester and sustainable packaging solutions.
The Company already has 20+ granted global patents, demonstrating the depth of its technology platform and longstanding focus on proprietary product development. It also has a robust pipeline of 30+ specialty products at various stages of development and commercialisation.
During Financial Year 2025-26, R&D investment was equivalent to approximately 1% of total Company revenue, reflecting Esters continued commitment to technology-led growth. During the year, the Company also filed 2 new patent applications related to flexible packaging materials and manufacturing technologies.
Esters R&D model is closely linked to customer needs. R&D, manufacturing, technical service and customer teams work together to identify application gaps, develop customised materials and scale them commercially. This strengthens customer stickiness and creates entry barriers in niche applications.
Manufacturing excellence is a key enabler of Esters specialty-led growth strategy. The Company operates three state of the art manufacturing facilities across India and is focused on improving reliability, safety, quality and asset productivity across its operating base.
Total Productive Maintenance: TPM practices are being embedded across Khatima, Hyderabad and Head Office. The objective is to improve asset uptime, reduce defects, strengthen preventive maintenance discipline and support higher utilisation. This is especially important as the Company scales specialty and value-added products, where process consistency and specification control are critical.
Quality and Process Discipline: Ester is strengthening quality assurance systems across manufacturing lines. The focus is on structured audits, real-time quality monitoring and statistical process controls. These initiatives are aimed at ensuring consistent conformance to customer specifications and improving first-time-right performance.
Safety and System Upgrades: A company-wide safety enhancement programme is underway. It is supported by training, audits and engineering controls. The Company is also upgrading process controls and quality systems to ensure reliable and high-standard output.
By improving yield, uptime, quality and safety, Manufacturing Excellence reinforces customer trust. It also supports scalable delivery as Ester increases the share of specialty products in its portfolio.
People are central to Esters ability to execute its growth strategy. As the Company moves toward a more innovation-led and specialty-focused portfolio, it is strengthening talent development, engagement and organisational culture.
HR Transformation: Ester is investing in more employee-centric people processes. The objective is to strengthen its position as an employer of choice and support the professional growth of employees across levels.
Talent Development and Retention: Focused initiatives are underway to build leadership pipelines, retain high-potential talent and improve employee engagement. These include targeted development programmes, recognition initiatives and actions to support work-life balance.
Culture and Workplace Excellence: The Company is working to build a collaborative, inclusive and high-trust workplace. Wellness initiatives, continuous feedback and culture-building programmes are being strengthened to improve employee experience and organisational effectiveness.
This people-first approach supports innovation, operational discipline and execution agility. It also helps Ester build a resilient and future-ready organisation.
Digital transformation is a key focus area for Ester over the next 2-3 years. The Company is moving toward a more data-driven and digitally enabled operating model to improve agility, efficiency and decision-making.
Process Automation: Ester is automating core workflows and deploying real-time automations across key functions. In FY 2025-26 150+ workflows were digitized. These initiatives are aimed at reducing manual effort, improving accuracy and enabling faster decisions across operations, sales, finance and support functions.
New Website Launch: We have refreshed our digital front door to our customers which we intent to use as our primary digital tool for lead generation and customer acquisition.
Together, these initiatives will help Ester manage greater scale with speed, control and efficiency. They will also support better execution as the Company expands specialty products, value-added films and recycled polyester solutions.
Sustainability is increasingly becoming part of Esters operating model. The Companys ESG focus is not limited to compliance; it is linked to responsible sourcing, traceability, resource efficiency, renewable energy and community development.
The Company holds certifications and registrations including FSSAI, ISCC and GRS. These reflect its focus on food safety, responsible sourcing, traceability and recycled-material use.
Resource Efficiency During Financial Year 2025-26, the Company undertook several initiatives to reduce water and energy consumption across operations. Water conservation projects included installation of mechanical seals, pneumatic level-control valves, reuse of treated effluent for HCl tank seal-pot make-up and substitution of raw water in chilled-water circuit make-up.
Energy-efficiency initiatives included replacement of low-efficiency cooling water and chilled water pumps, retrofitting of air handling units, optimisation of water-bath temperatures and replacement of an ageing vapour absorption machine.
These initiatives delivered measurable results:
1. Estimated annual water savings of 584,000 L in FY 2025-26.
2. Energy intensity improved to 13.15 GJ/MT in FY 2025-26 from 15.10 GJ/MT in FY 2024-25, reflecting a 14
3. 3. Equipment updates generated estimated annual electricity savings of approximately 6.68 lakh kWh in FY 2025-26, equivalent to around 53 lakh in FY 2025-26.
4. Renewable Energy
5. 1. Solar power arrangements are in place, with the Hyderabad contract signed and benefits expected from current fiscal year. Further opportunities for renewable energy adoption are also being actively explored across facilities.
6. 2. The Company also procured 11,450 Renewable Energy Certificates during the year, representing 11,450 MWh of renewable electricity. This supports Esters efforts to offset conventional electricity use and increase the share of renewable energy in its sustainability approach.
7. CSR and Community Development
8. The Companys CSR projects during the year focused on education, healthcare and rural sports.
9. Promoting Education: Providing free education, books, uniforms and transport to underprivileged and economically weaker section students living in or around Khatima in Saraf Public School under the Ester Navsrijan program.
11. Action for Autism: Providing vocational skills in permaculture and food processing for autistic youth at Ananda - The Assisted Living Facility at Gurugram. It includes the cost of a fruit and vegetable dehydrator, food processor, tilling machine and salary of a permaculture specialist.
13. E. ELITE JOINT VENTURE WITH LOOP INDUSTRIES
14. The ELITe joint venture with Loop Industriesmarks significantstep in the Companys sustainability journey, extending its recycling capability from mechanical recycling to chemical recycling. The JV is well positioned to benefit as global demand shifts towards rPET, driven by the introduction of strict regulations worldwide and the sustainability targets of leading global brands such as Nike, Puma and H&M.
15. Key Capabilities introduced
17. Update on ELITe Project
18. During the year, ELITe signed a Memorandum of Understanding with the Government of Gujarat for a proposed greenfield chemical recycling facility at Dahej, Bharuch, within the PCPIR cluster. The proposed investment is approximately 1,600 crores, with planned capacity of 70,000 MT and targeted commercial operations by 2028. Land acquisition and site development are progressing, and detailed engineering has been awarded to Toyo Engineering.
19. The project also has pre-commercial validation through anchor partnerships across different end-markets: Nike for Twist/ Loop-branded virgin-quality polyester resin, Taro Plast for recycled-DMT feedstock into automotive and specialty polymer applications, and Hyosung TNC for recycled polyester into Regen-branded yarns. These agreements provide demand visibility and support technology validation ahead of commercial operations.
20. F. GOVERNANCE AND EXECUTION DISCIPLINE
21. At Ester, we believe that disciplined execution stems from structured governance. Our three-tier governance model ensures strategic alignment, cross-functional coordination, and accountability across all levels of the organization. This framework is central to how Ester drives transformation, manages risk, and delivers on its long-term growth ambitions.
23. 1. Board of Directors Sets the companys strategic direction, monitors long-term objectives, and ensures oversight on key risks and compliance matters.
24. 2. Central Leadership Team (CLT) Comprising the Chairman, ED Corporate Affairs, CEO, and CFO, the CLT translates strategy into actionable priorities and drives enterprise-wide decision-making and alignment.
25. 3. Process Owners / Function Heads: Responsible for operational execution, performance delivery, and process improvement across their respective areas. They serve as anchors for driving initiatives and ensuring feedback loops to leadership. This structure enables Ester to operate with agility and discipline-ensuring that every initiative, from innovation to cost transformation, is aligned to our strategic goals and executed with shared ownership.
26. G. BUSINESS & FINANCIAL PERFORMANCE
| Particulars | Quantity Produced (MT) | Quantity Produced (MT) | Growth |
| (During FY 2025-26) | (During FY 2024-25) | ||
| Polyester Chips | 66,932 | 67,419 | (0.72%) |
| Specialty Polymers | 3,741 | 3,477 | 7.59% |
| PET Film - Non-Metallized | 45,570 | 50,323 | (9.44%) |
| PET Film - Metallized | 10,136 | 10,340 | (1.97%) |
| R - PET | 6,948 | 3,415 | 103.46% |
| Particulars | Quantity Sold | Quantity Sold | Growth |
| (During FY 2025-26) | (During FY 2024-25) | ||
| Polyester Chips | 20288 | 18556 | 9.33% |
| Specialty Polymers | 4163 | 3377 | 23.28% |
| PET Film - Non Metallized | 34799 | 39523 | (11.95%) |
| PET Film - Metallized | 10061 | 10275 | (2.09%) |
| Sub Total - PET Film | 44860 | 49798 | (9.92%) |
| R - PET | 5340 | 1485 | 259.60% |
| Particulars | Revenue from Operations | Revenue from Operations | Growth |
| ( in Lacs) | ( in Lacs) | ||
| (During FY 2025-26) | (During FY 2024-25) | ||
| Polyester Chips | 16174 | 16114 | 0.37% |
| Specialty Polymers | 18596 | 15879 | 17.11% |
| PET Film - Non-Metallized | 47759 | 56912 | (16.08%) |
| PET Film - Metallized | 16023 | 16494 | (2.86%) |
| Sub Total - PET Film | 63782 | 73406 | (13.11%) |
| R - PET | 5961 | 1647 | 261.93% |
| Total | 104513 | 107046 | (2.37%) |
| Particulars | ( in Lacs) | ( in Lacs) | Growth |
| (During FY 2025-26) | (During FY 2024-25) | ||
| EBITDA | 8587.90 | 13369.86 | (35.77%) |
| PBT | 756.33 | 5464.10 | (86.16%) |
| PAT | 437.20 | 4053.29 | (89.21%) |
| Other Comprehensive Income | 44.38 | (364.91) | Positive from |
| Negative | |||
| Total Comprehensive Income | 481.58 | 3688.38 | (86.94%) |
Production & Sales Overview
Production of Polyester Chips decreased marginally during the year under review.
Production of both non-metallized Polyester Film decreased by 9.44% from 50323 MT to 45570 MT. Reduction in production of non-metallized Polyester Film in Ester Industries Limited was compensated by increased production in Wholly Owned Subsidiary, Ester Filmtech Limited. Production of metallized Polyester Film decreased marginally. Domestic demand supply imbalance improved during the year as demand continues to grow consistently.
Production of Specialty Polymers increased by 7.59% while production of R PET increased significantly from 3415 MT to 6948
MT (by 103.46%) both on account of implementation of PWMR and increased demand.
Business performance Overview (FY 2025-26)
Standalone net revenues from the operations for the year reduced by 2.37% from 1,070.46 crores to 1,045.13 crores, due to the following factors: a. Revenue from Polyester Chips both in volumetric and value terms remained almost same as last year. The sales in volumetric terms increased by 9.33% and by 0.37% in value terms. Polyester Chips is reported as part of Polyester Films segment. b. Reduction in the sales value of BOPET Films due to reduction in per unit sales realization and margins in BOPET Films. c. Higher proportion of Value Added & Specialty Films both in volumetric and value terms. d. Revenue from R PET increased significantly by 259.60% in volumetric terms and by 261.93% in value terms. R PET is reported as part of Polyester Films segment. e. Increase in sales of Specialty Polymers by 23.28% in volumetric terms and 17.11% in value terms.
Financial performance was significantly lower than last year mainly on account of shrinkage in margins in Polyester Films due to adverse impact of huge Reciprocal & Punitive Trade Tariff imposed by US on exports originating from India. Another major reason was dumping of Polyester Films into India by China & few other countries which exerted pressure on margins in domestic market.
Geo-political disturbance & war in West Asia caused prices of Crude Oil to rise significantly. Increase in Crude Oil prices coupled with other internal & external factors caused devaluation of Indian Rupee against USD, Euro & other major currencies.
This resulted in significant Mark-To-Mark and Reinstatement losses for the company and its Wholly Owned Subsidiary, Ester
Filmtech Limited.
In the month of November 2024, the Company raised 43.75 crores under Share Warrants issue of 174.99 crores. Within the statutory time limit of 18 months, subscribers to Share Warrants have further made payment of 121.50 crores. Thus, an amount of 165.25 crores have been received against issue of Share Warrants. 1,02,53,153 Share Warrants have now been converted into 1,02,53,153 Equity Sares while the balance Share Warrants (8,22,788) amounting to 9.75 crores have remained unsubscribed.
Raising Equity (against Share Warrants) from promoters & other investors was possible because of positive medium to long term prospects of the Company. The company maintained a disciplined approach to debt repayment, adhering strictly to the repayment schedule for term borrowings. As a result, the financial leverage, as indicated bythe Total Outside Liabilities to Total Net Worth ratio, stood at 0.45 as of 31 st March 2026. The book value per equity share was 97.29.
| Key Financial Ratios - Standalone Basis |
| Particulars | 2025-26 | 2024-25 | Change % | Remarks |
| Current Ratio | 1.75 | 1.85 | (5.41%) | Marginal variation |
| Increase in current liabilities on account of increase | ||||
| in current maturities of long-term loans and higher | ||||
| utilization of working capital limits, increase in | ||||
| acceptances under LCs and trade payables. | ||||
| Overall increase in current assets. Increase in inventories, | ||||
| advances, cash & cash equivalent and bank balances | ||||
| were higher than the reduction in receivables. | ||||
| Debt Equity Ratio | 0.35 | 0.33 | (6.06%) | Marginal variation |
| Though the PAT was lower than last year, share | ||||
| premium / equity increased on account of issuance | ||||
| of share warrants / equity at premium, the ratio has | ||||
| deteriorated marginally on account of increase in | ||||
| current borrowings. | ||||
| Debt Service | 1.27 | 0.69 | 84.06% | Despite lower PAT, DSCR improved significantly |
| Coverage Ratio | account of reduction in repayment of term loans. | |||
| Return on Equity | 0.47% | 4.67% | drop in the ratio is attributed to significantly (89.94%) Significant | |
| lower operating & financial performance compared to | ||||
| the previous financial year and higher average equity | ||||
| on account of issuance of fresh equity capital & share | ||||
| warrants at premium. | ||||
| Inventory Turnover | 4.81 | 5.68 | (15.32%) | Marginal variation |
| Inventory turnover ratio dropped as average inventory | ||||
| though | cost of | increased material significantly | ||
| consumed (net of change in inventory of FG & WIP) | ||||
| increased marginally | ||||
| Trade Receivables | 7.97 | 8.76 | (9.02%) | Marginal variation |
| Turnover Ratio | Deterioration in ratio is on account of higher receivables. | |||
| There was increase in receivables though sales turnover | ||||
| reduced marginally | ||||
| Trade Payables | 21.26 | 23.75 | 10.48% | Marginal variation |
| Turnover Ratio | ||||
| Trade payables increased more than the increase in cost | ||||
| of material consumed | ||||
| Net Working Capital | 5.10 | 5.76 | (11.46%) | Marginal variation |
| Turnover Ratio | ||||
| Though sales turnover dropped marginally, the ratio | ||||
| deteriorated due to higher inventory, advances, cash & | ||||
| bank balances | ||||
| Net Profit Ratio 0.42% 3.84% (89.06%) Deterioration in the ratio is attributed to significantly | ||||
| lower operating & financial | ||||
| the previous year on account of US trade tariff, dumping | ||||
| by China and adverse exchange fluctuation. | ||||
| Return on Capital | 3.26% | 7.33% | (55.53%) | Deterioration in the ratio is attributed to significantly |
| Employed | lower financial | |||
| financial year on account of reasons stated above and | ||||
| marginal increase in capital employed. | ||||
| Return on Investment | 3.75% | 6.50% | (42.31%) | The reduction in return on investment is due to lower |
| returns from equity oriented mutual funds compared to | ||||
| previous year and lower profit on sales, lower gains on | ||||
| fair valuation of financial | ||||
| account of poor performance of equities on the bourses | ||||
| due to war in West Asia and on-going geo-political | ||||
| disturbances. |
Detailed Explanation of Ratios
(i) Current Ratio
The Current Ratio is a liquidity ratio that measures a Company s ability to pay short - term obligations or those due within one year. It is calculated by dividing the current assets by current liabilities.
(ii) Debt Equity Ratio
The ratio is used to evaluate a Company s financial leverage. It is a measure of the degree to which a Company is financing its operations through debt versus wholly owned funds. It is calculated by dividing sum total of total borrowings and total lease liabilities by its shareholder s equity.
(iii) Debt Service Coverage Ratio
The above ratio is used to evaluate debt service capability of the Company. Higher ratio indicates better debt service capability. It is measured by dividing the sum total of NPAT, Non-cash operating expenses like depreciation & other amortizations, interest on term loans & lease liabilities and other adjustments like loss on sale of fixed assets etc. by sum total of Interest & lease payments and Principal Repayments during the year.
(iv) Return on Equity (%)
Return on Equity (ROE) is a measure of profitability of a Company expressed in percentage. It is calculated by dividing
NPAT for the year by average shareholders equity. Average shareholders equity is calculated by dividing sum total of shareholders equity at the beginning and at the end of the year by two.
(v) Inventory Turnover
Inventory Turnover is the number of times a Company sells and replaces its inventory during a period. It is calculated by dividing cost of goods sold by average inventory.
(vi) Trade Receivables Turnover Ratio
The above ratio is used to quantify a Company s effectiveness in collecting its receivables or money owed by customers. The ratio shows how well a Company uses and manages the credit it extends to customers and how quickly that short - term debt is collected or is paid. It is calculated by dividing net sales turnover by average trade receivables.
(vii) Trade Payables Turnover Ratio
The above ratio is used to quantify a Company s effectiveness in being able to use trade payables or money owed to suppliers as source for financing working capital needs of the Company. It is calculated by dividing Net Purchases by
Average Trade Payables. Net purchases are sum total of cost of material consumed, consumption of stores & spares, consumption of packing material, power & fuel and increase / decrease in raw material & stores & spares inventories.
(viii) Net Capital Turnover Ratio
It is calculated by dividing Net Sales by Working Capital.
(ix) Net Profit Ratio (%)
The Net Profit Ratio is equal to how much net income or profit is generated as a percentage of Net Sales. It is calculated by dividing NPAT for the year by Net Sales during the year.
(x) Return on Capital Employed (ROCE) (%)
Return on Capital Employed (ROCE) is a measure of profitability of a Company expressed in by dividing NPAT for the year by capital employed. Capital employed is sum total of Tangible Net Worth, Total Debt and Deferred Tax Liability.
(xi) Return on Investment (%)
Return on Investment is a measure of profits earned on investments expressed in percentage. It is calculated by dividing sum of returns on CPs & others, profit on sale of investments and gain on fair valuation of financial investments. Average investment is calculated by dividing sum total of investments (net of unrealized profits) at the beginning of year and at the end of the year by two.
Risk Management and Internal Audit
The Company operates under a structured Enterprise Risk Management (ERM) framework designed to proactively identify, assess, and mitigate operational and strategic uncertainties. To ensure robust oversight, the Board of Directors has constituted a dedicated Risk Management Committee (RMC). The RMC is responsible for framing, implementing, and monitoring the risk mitigation plan while verifying its overall effectiveness. Supplementary oversight is provided by the
Audit Committee, which specifically monitors financial risks, ernal controls, and the integrity of financial reporting
Acknowledging that risk is inherent to business operations, the Company continuously invests in upgrading its risk management capabilities. The established ERM processes are modelled after globally recognized benchmarks, including the Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework and ISO 31000 Risk Management Guidelines.
This systematic architecture comprises five core components:
?€ Risk Identification: Proactively spotting operational and environmental uncertainties.
?€ Risk Categorization: Segmenting exposures into strategic, operational, compliance, financial, and Governance (ESG) risks.
?€ Risk Assessment and Rating: Evaluating the potential impact and likelihood of occurrence.
?€ Risk Response: Formulation of strategic counter-measures.
?€ Risk Mitigation: Continuous execution of control activities.
From a comprehensive library of aggregated risks, the Company has isolated the top high-priority exposures, designated as " Risks that Matter. " The RMC continuously evaluates these critical threats and adapts mitigation strategies to align with a volatile macroeconomic landscape. Based on its periodic reviews, the Board confirms that there are currently no foreseeable risks that threaten the baseline existence of the Company.
The Risk Management Policy is available on the website of the Company at https://www.esterindustries.com/wp-content/ themes/esterindustries/assets/pdf/governance-and-regulatory-information/codes-and-policies/risk-management-policy.pdf . The internal control environment is validated by Independent Internal Auditors who audit all functions and test the effectiveness of Internal Financial Controls (IFC). The Audit Committee meticulously reviews these audit findings, monitors the implementation of corrective action plans, and delivers strategic guidance to strengthen internal checks. By systematically converting vulnerabilities into structured operational opportunities, this integrated oversight model reinforces business resilience, ensures long-term continuity, and protects the interests of shareholders, lenders, customers, and employees alike.
Cautionary Statement
Statements in this section relating to future status, events, circumstances, plans and objectives are forward - looking statements based on estimates and anticipated effects of future events. Such statements are subject to risks and uncertainties and accordingly are not predictive of future results. Actual results may differ materially from those anticipated in the forward - looking statements. The Company cannot be held responsible in any manner for such statements. The company undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.
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