27-Oct-2026 08:35:52
INDO RAMA SYNTHETICS Q2 CONCALL : NET PROFIT UP 202% YOY, MANAGEMENT EXPECTS FY27 EBITDA ABOVE ₹400 CR & ANNOUNCES ₹200 CR SPECIALTY EXPANSION
• MANAGEMENT EXPECTS FY27 REVENUE TO EXCEED ₹5,000 CR, WITH EBITDA TARGETED ABOVE ₹400 CR • MANAGEMENT EXPECTS EBITDA MARGINS OF APPROXIMATELY 9.9% TO REMAIN SUSTAINABLE OVER THE NEXT TWO QUARTERS, WITH A LONGER-TERM AMBITION TO ACHIEVE DOUBLE-DIGIT MARGINS • MANAGEMENT EXPECTS FY27 SALES VOLUMES OF APPROXIMATELY 4 LAKH TONNES, BELOW FY26'S 4.75 LAKH TONNES, WITH RECOVERY ABOVE FY26 LEVELS TARGETED IN FY28 • Q2 NET PROFIT SURGED 201.8% YOY TO ₹74.1 CR, COMPARED WITH ₹24.6 CR LAST YEAR • Q2 TOTAL INCOME UP 10% YOY TO ₹1,344 CR, WHILE EBITDA INCREASED 46.4% TO APPROXIMATELY ₹117.7 CR • Q2 EBITDA MARGIN IMPROVED 220 BPS YOY TO 8.8%, WHILE NET PROFIT MARGIN EXPANDED 350 BPS TO 5.5% • H1 EBITDA UP 24.9% YOY TO ₹225.7 CR, WHILE NET PROFIT INCREASED 78.3% TO ₹137.8 CR DESPITE LOWER REVENUE • COMPANY APPROVED ₹200 CR CAPEX FOR SPECIALTY FILAMENT YARN & POLYESTER FIBER EXPANSION, WITH COMMERCIAL OPERATIONS TARGETED DURING CALENDAR 2027 • MANAGEMENT EXPECTS THE SPECIALTY EXPANSION TO GENERATE APPROXIMATELY 15% INCREMENTAL REVENUE POTENTIAL & 20% INCREMENTAL EBITDA POTENTIAL, SUBJECT TO SUCCESSFUL EXECUTION • MANAGEMENT INDICATES POTENTIAL ANNUAL EBITDA CONTRIBUTION OF APPROXIMATELY ₹100 CR FROM THE SPECIALTY PROJECT AROUND FY29, WITH ESTIMATED PAYBACK BELOW TWO YEARS • POLYESTER FIBER & FILAMENT OPERATIONS ARE RUNNING NEAR FULL CAPACITY, WHILE PET RESIN UTILIZATION REMAINS AROUND 60%, OFFERING SCOPE FOR IMPROVEMENT • MANAGEMENT EXPECTS UPCOMING DOMESTIC PTA CAPACITY TO IMPROVE RAW-MATERIAL AVAILABILITY, REDUCE IMPORT DEPENDENCE & SUPPORT LOGISTICS COST EFFICIENCIES • MANAGEMENT AIMS TO RECOVER EXPORT CONTRIBUTION TOWARD HISTORICAL LEVELS OF 20–25% OF SALES, COMPARED WITH APPROXIMATELY 5.6% CURRENTLY • H1 OPERATING CASH FLOW IMPROVED TO ₹328.5 CR FROM APPROXIMATELY ₹92 CR YOY, WHILE NET DEBT DECLINED TO ₹852 CR FROM ₹1,113 CR AT FY26-END • MANAGEMENT REMAINS POSITIVE ON SPECIALTY PRODUCTS & VOLUME RECOVERY, BUT COMMODITY PRICE VOLATILITY, RAW-MATERIAL SUPPLY DISRUPTIONS, LOW PET UTILIZATION & DEBT-FUNDED CAPEX REMAIN KEY RISKS
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