Fiberweb (India) Limited — Important, 14-05-2026: Disclosure of material issue

Fiberweb (India) Ltd. has drastically changed its expansion plans.

**The Issue:**

The company has scrapped its earlier plan to invest ~Rs. 165 Cr in nonwoven flushable products. This is due to a dramatic market shift: global demand growth for flushables fell from 20% to ~0.5% annually, driven by geopolitical problems, policy changes (like US exiting Paris accord), and legislative delays. This has led to significant market oversupply, expected to last until 2032, making the project unviable and wiping out expected high margins. The sanctioned SBI term loan for this project will not be availed.

**Company's Response/Mitigation:**

Fiberweb will now pursue a revised project, investing ~Rs. 50 Cr (significantly lower than before) to manufacture nonwoven felted products using recycled materials. This new strategy is expected to generate ~Rs. 175 Cr in annual revenue and ~Rs. 30 Cr in profitability, contributing significantly to growth with much lower financial exposure and aligning with sustainability goals.

**Impact on Q1 Results:**

The ongoing Middle East conflict has significantly impacted crude oil and polymer prices, affecting Fiberweb's raw material costs and product price volatility. This crisis has affected the company's results for the quarter.

**Q1 Financials:**

For the quarter, Fiberweb reported a gross revenue of Rs. 972.07 Cr and a net profit (pre-tax) of Rs. 176.65 Cr.