Ester Industries Limited — PPTs, 22-05-2025: Investor Presentation

1. Financial Highlights:

Consolidated revenue rose 19% YoY to Rs. 1,298 Cr in FY25, with EBITDA surging 135% to Rs. 164 Cr and margins expanding by 890 bps to 12%. The company reported a PAT of Rs. 14 Cr versus a loss of Rs. 121 Cr last year, driven by strong performances in Polyester Films (revenue +15%) and Specialty Polymers (revenue +72%, EBIT +164%). Polyester Films operated at 84% capacity utilization, while subsidiary Ester Filmtech Ltd. stood at 57%. Equity increased steadily to Rs. 773 Cr; borrowings remain manageable. Operating cash flow stayed positive despite some quarterly exchange rate pressure on EBITDA.

2. Strategic Initiatives & Growth Drivers:

Ester is ramping recycled PET (rPET) capacity from 8 KTPA to 20 KTPA by August 2025, supporting regulatory trends on PCR content in packaging. A 50:50 JV with Loop Industries aims to commission a US$180 Mn chemical recycling plant by H2 2027 using patented infinite loop technology. The focus includes increasing the share of value-added polyester films to ~35% of the mix by FY26 and boosting production efficiency, alongside advancing renewable energy use and reducing carbon footprint.

3. Business Developments:

Progress continues on the Loop Industries JV, reinforcing Ester’s sustainability positioning. The rPET product line expanded strongly in volume and value across rigid and flexible packaging segments. Film capacity growth and addition of a two-stage offline coater plus PCR extruder at Ester Filmtech Ltd. support higher sustainable product ratios.

4. Market Position & Competitive Advantage:

With 35+ years’ experience and 18+ patents, Ester is a leader in specialty polyesters and films with a strong sustainability focus. Its diversified portfolio serves 50+ countries and specialty polymers have high entry barriers, offering a solid moat. Certified high PCR content films (GRS, ISCC Plus, FSSC) and customized solutions complement scale and technology leadership amid evolving environmental demands.

5. Investor Implications:

Robust top-line growth and profitability turnaround indicate positive growth potential driven by innovation and rising recycled polyester demand. The Loop Industries JV and capacity expansions are key growth levers but require monitoring for execution. The move from commodity to specialty sustainable films lowers cyclicality risk, presenting Ester as an attractive opportunity in circular economy and premium polyester segments.