CENTURY ENKA LTD Q2 CONCALL: NORMALIZED EBITDA MARGIN EXPECTED AT 7–10%, PTCF COMMERCIAL SALES FROM Q4 FY27, ₹10 CR ANNUAL HYBRID POWER SAVINGS & VALUE-ADDED YARN MIX TARGET OF 50%

• MANAGEMENT EXPECTS NORMALIZED EBITDA MARGINS IN THE RANGE OF 7–10%, SUPPORTED BY IMPROVING PRODUCT MIX, OPERATING EFFICIENCY & COST OPTIMIZATION • MANAGEMENT CLARIFIED THAT THE 7–10% EBITDA MARGIN RANGE REPRESENTS NORMALIZED OPERATING CONDITIONS & IS NOT A GUARANTEED QUARTERLY PROFITABILITY TARGET • MANAGEMENT EXPECTS COMMERCIAL SALES OF POLYESTER TYRE CORD FABRIC (PTCF) TO BEGIN FROM Q4 FY27, SUBJECT TO COMPLETION OF CUSTOMER QUALIFICATION & APPROVALS • MANAGEMENT EXPECTS PTCF CAPACITY UTILIZATION TO REACH GOOD TO HIGH LEVELS DURING H2 FY28, FOLLOWING A GRADUAL INITIAL COMMERCIAL RAMP-UP • MANAGEMENT DID NOT DISCLOSE SPECIFIC PTCF REVENUE OR SALES-VOLUME TARGETS, CITING COMPETITIVE CONSIDERATIONS • MANAGEMENT EXPECTS ADDITIONAL HYBRID POWER CAPACITY TO BE COMMISSIONED DURING Q4 FY27, SUPPORTING LOWER ENERGY COSTS AT THE BHARUCH FACILITY • MANAGEMENT ESTIMATES APPROXIMATELY ₹10 CR ANNUALIZED COST SAVINGS FROM THE ADDITIONAL HYBRID POWER PROJECT, SUBJECT TO ACTUAL POWER TARIFF DIFFERENTIALS • MANAGEMENT EXPECTS VALUE-ADDED PRODUCTS TO CONTRIBUTE APPROXIMATELY 50% OF NYLON FILAMENT YARN SALES IN THE NEAR TERM, SUPPORTING BETTER PRODUCT REALIZATIONS & MARGINS • MANAGEMENT PLANS TO EXPAND SPECIALTY NYLON YARN CAPACITY AT BHARUCH & MOTHER YARN CAPACITY AT PUNE, SUPPORTING HIGHER-VALUE PRODUCT DEVELOPMENT • MANAGEMENT EXPECTS THE PUNE MOTHER YARN EXPANSION TO BE CAPITALIZED DURING FY28, SUPPORTING FUTURE SPECIALTY PRODUCT GROWTH • MANAGEMENT EXPECTS NORMAL CAPACITY UTILIZATION TO REMAIN GENERALLY WITHIN THE 80–90% RANGE, DEPENDING ON PRODUCT DEMAND & MARKET CONDITIONS • MANAGEMENT INDICATED THAT NO MAJOR ADDITIONAL NYLON CAPACITY IS REQUIRED IN THE NEAR TERM, GIVEN AVAILABLE CAPACITY HEADROOM • MANAGEMENT EXPECTS UNUSUALLY HIGH NYLON TYRE CORD FABRIC IMPORTS TO NORMALIZE OVER THE COMING QUARTERS, ALTHOUGH GEOPOLITICAL UNCERTAINTY REMAINS A RISK • MANAGEMENT EXPECTS HEALTHY AUTOMOTIVE DEMAND, PARTICULARLY FROM PASSENGER & COMMERCIAL VEHICLE SEGMENTS, TO SUPPORT TYRE CORD FABRIC CONSUMPTION • MANAGEMENT AIMS TO INCREASE THE SHARE OF SPECIALTY & PREMIUM NYLON FILAMENT YARNS TO REDUCE EXPOSURE TO LOW-PRICED CHINESE IMPORTS • MANAGEMENT SEES POTENTIAL EXPORT OPPORTUNITIES IN EUROPEAN UNION & UK MARKETS, PARTICULARLY FOR PREMIUM & RECYCLED NYLON YARNS • MANAGEMENT DID NOT PROVIDE NUMERICAL EXPORT REVENUE GUIDANCE, AS INTERNATIONAL DISTRIBUTION DEVELOPMENT & TRADE-AGREEMENT BENEFITS REMAIN UNCERTAIN • MANAGEMENT EXPECTS RAW-MATERIAL PRICE VOLATILITY TO CONTINUE IN THE NEAR TERM, WITH SELLING PRICES GENERALLY LINKED TO CRUDE-DERIVED INPUT COSTS • MANAGEMENT EXPECTS WORKING CAPITAL PRESSURE TO MODERATE IF RAW-MATERIAL PRICES NORMALIZE, FOLLOWING THE INCREASE IN INVENTORY VALUE DURING H1 FY27 • MANAGEMENT DID NOT PROVIDE SPECIFIC FY27 REVENUE GROWTH, FY27 PAT, FY28 EBITDA OR FY28 PAT GUIDANCE • Q2 FY27 REVENUE INCREASED 37% YOY TO ₹558 CR, SUPPORTED BY HIGHER SALES VOLUMES & RAW-MATERIAL-LINKED SELLING PRICE INCREASES • Q2 EBITDA INCREASED ONLY 4% YOY TO ₹33 CR, REFLECTING SIGNIFICANT RAW-MATERIAL, ENERGY & COMPETITIVE COST PRESSURES • Q2 EBITDA MARGIN STOOD AT 5.88%, BELOW MANAGEMENT'S NORMALIZED 7–10% RANGE • Q2 PAT DECLINED 17% YOY TO ₹19 CR, WITH PAT MARGIN OF APPROXIMATELY 3.31% • H1 FY27 REVENUE GREW 37% YOY TO ₹1,113 CR, WHILE EBITDA INCREASED 130% TO ₹119 CR • H1 FY27 EBITDA MARGIN REACHED 10.66%, WHILE PAT STOOD AT ₹80 CR WITH A 7.21% MARGIN • Q2 SALES VOLUME INCREASED 13% YOY TO 20,162 MT, WHILE H1 VOLUME GREW 13% TO 39,361 MT • MANAGEMENT INDICATED THAT REVENUE GROWTH SIGNIFICANTLY EXCEEDED VOLUME GROWTH BECAUSE HIGHER RAW-MATERIAL COSTS WERE REFLECTED IN SELLING PRICES • TYRE CORD FABRIC REVENUE INCREASED 37% YOY TO ₹251 CR, SUPPORTED BY AUTOMOTIVE DEMAND & HIGHER REALIZATIONS • NYLON FILAMENT YARN REVENUE GREW 39% YOY TO ₹293 CR, SUPPORTED BY FESTIVE DEMAND & IMPROVED SALES VOLUMES • Q2 CAPACITY UTILIZATION STOOD AT APPROXIMATELY 85%, AGAINST THE COMPANY'S GENERALLY INDICATED 80–90% OPERATING RANGE • MANAGEMENT INDICATED INSTALLED CAPACITY OF APPROXIMATELY 92,000 MT DURING THE ANALYST DISCUSSION • Q1 FY27 PROFITABILITY BENEFITED FROM LOWER-COST OPENING INVENTORY, WHILE Q2 EXPERIENCED A HIGHER RAW-MATERIAL COST BASE • HIGHER GRID ELECTRICITY TARIFFS AT BHARUCH, ELEVATED LNG PRICES & DELAYED COST PASS-THROUGH CONTRIBUTED TO Q2 MARGIN PRESSURE • INVENTORY VALUE INCREASED TO APPROXIMATELY ₹313 CR AT H1 FY27-END, MAINLY DUE TO HIGHER RAW-MATERIAL PRICES RATHER THAN A PROPORTIONATE INCREASE IN PHYSICAL INVENTORY • MANAGEMENT CITED CAPROLACTAM PRICES OF APPROXIMATELY $2,000–2,100 & NYLON CHIP PRICES OF APPROXIMATELY $2,100–2,200, HIGHLIGHTING CONTINUED INPUT-COST VOLATILITY • CAPITAL WORK-IN-PROGRESS STOOD AT APPROXIMATELY ₹38 CR IN H1 FY27 VS ₹13 CR IN FY26, REFLECTING ONGOING CAPACITY & EFFICIENCY PROJECTS • KEY RISKS INCLUDE CHINESE IMPORT COMPETITION, RAW-MATERIAL VOLATILITY, HIGH ENERGY COSTS, DELAYED PTCF CUSTOMER APPROVALS & UNCERTAIN EXPORT DEMAND • OVERALL OUTLOOK REMAINS CAUTIOUSLY POSITIVE, WITH KEY MONITORABLES INCLUDING Q4 FY27 PTCF COMMERCIALIZATION, ₹10 CR ANNUALIZED POWER SAVINGS, 50% VALUE-ADDED YARN MIX & EBITDA MARGIN RECOVERY TOWARD 7–10%

CENTURY ENKA LTD

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