Revenue increases 9 per cent as expansion and recycling projects progress
Filatex India reported a 20.62 per cent year-on-year increase in standalone profit after tax to Rs 490.14 million for the quarter ended June 30, 2026, compared with Rs 400.74 million in Q1FY26.
Revenue from operations rose 9.14 per cent year-on-year to Rs 11.45 billion from Rs 10.49 billion. On a sequential basis, revenue increased 16.22 per cent from Rs 9.85 billion in Q4FY26.
EBITDA stood at Rs 770.92 million, marginally higher than Rs 770.76 million recorded in the corresponding quarter of the previous financial year. The EBITDA margin declined to 6.80 per cent from 7.41 per cent.
Sequentially, profit after tax increased 22.06 per cent from Rs 400.25 million, while EBITDA declined 9.65 per cent from Rs 860.24 million.
Production during the quarter stood at 84,076 metric tonnes, down 11.50 per cent year-on-year. Sales volumes declined 7.50 per cent to 89,972 metric tonnes from 97,263 metric tonnes in Q1FY26.
The company’s Rs 3 billion textile-to-textile recycling project, with an annual capacity of 26,750 tonnes, is progressing towards commissioning in October 2026. The earlier September 2026 commissioning target was revised due to heavy rainfall and a temporary labour shortage.
Filatex India’s Rs 2.35 billion brownfield polyester filament yarn capacity expansion is progressing as scheduled. The project will add around 55,000 tonnes per annum, primarily across partially oriented yarn, fully drawn yarn and draw textured yarn, and is expected to be commissioned by September 2026.
The company is also implementing hybrid wind-solar and solar power projects to increase renewable energy’s share in its overall power consumption from around 26 per cent to 55 per cent. Commissioning is targeted for November 2026.
Filatex India has signed memoranda of understanding with American & Efird Global and Decathlon to conduct trials of its recycled polyester yarn for thread manufacturing and other applications. Approvals from several other international brands are also at an advanced stage.
The company said geopolitical tensions in West Asia had raised crude oil-linked purified terephthalic acid and monoethylene glycol prices between March and May, affecting demand and industry utilisation levels.
Higher freight, insurance and import costs also led to cautious buying and lower operating rates. Conditions began improving from June as crude oil prices stabilised and supply-chain disruptions eased.
The temporary removal of customs duties on purified terephthalic acid and monoethylene glycol from April 2, 2026, provided near-term relief from raw material cost pressures. Planned domestic capacity additions are expected to further reduce India’s dependence on imported raw materials.
Madhu Sudhan Bhageria, Chairman and Managing Director, Filatex India, said the quarterly performance was supported by stable volumes, disciplined execution and a continued focus on core operations.
He added that the company managed volatile crude-linked input costs through prudent inventory planning and disciplined sourcing.