Century Enka Limited — PPTs, 03-08-2025: Investor Presentation

Here's a summary of Century Enka's Q1FY26 performance:

**Financial Highlights:**

Century Enka's Q1FY26 revenue stood at INR 401.5 Cr, a 24% YoY decline. EBITDA was INR 19.9 Cr, with margins at 4.96%, a notable sequential improvement from Q4FY25. Net profit reached INR 15.4 Cr (3.84% margin), and EPS was INR 7.04. Sales volumes were 17,072 MT. The balance sheet (FY25) shows a Net Worth of INR 1,417.6 Cr and net surplus cash of INR 325.6 Cr.

**Strategic Initiatives & Growth Drivers:**

The company is advancing its foray into Polyester Tyre Cord Fabric (PTCF), with the approval process underway. Key efforts focus on enhancing margins through value-added filament yarn products and leveraging renewable energy at the Bharuch plant to manage costs. Management expects NTCF demand to improve in Q2 and H2, buoyed by the festive season and favorable monsoon.

**Business Developments:**

Filament yarn sales were impacted by a February 2025 fire at the Bharuch plant. However, the plant achieved full operational recovery by June 2025, which is a significant positive.

**Market Position & Competitive Advantage:**

Century Enka is a leading producer of Nylon Filament Yarn (23% domestic market share) and Nylon Tyre Cord Fabric (25% domestic market share) in India. It operates two state-of-the-art manufacturing facilities and its 'Enkalon' brand is recognized for quality.

**Investor Implications:**

While Q1FY26 faced headwinds from reduced auto sector demand, increased imports, and raw material price volatility, the sequential recovery in margins and operational normalization from the plant incident are encouraging. The expansion into PTCF and focus on value-added offerings signal future growth potential. Geopolitical and trade tensions present an execution risk to monitor.