Solid quarter masks April crisis; Ecosis transformation begins

Production 84,075 MT vs 94,996 in Q1 FY26 = 11.4% decline

OPM 6.8%, NPM 4.2%; PAT ₹49.1Cr implies robust profitability, not EBITDA-neutral

YoY PAT +20.7%; QoQ PAT +22.1%; pass-through successful to customers

Sales stable 89,872 MT; inventory gains ₹15-17Cr suggest inventory liquidation in May-June

No pilot revenue disclosed; ₹80Cr EBITDA at 75 TPD = ~₹30/kg markup assumption; stated as cautious

Guided 20-25% decline; actual 11.4% (84,075 MT vs 94,996). April crisis worse than expected but May-June recovery offset

Prior 'EBITDA-neutral' warning; actual OPM 6.8%, NPM 4.2%. ₹1,145Cr revenue with 20%+ raw material inflation; pass-through successful

Originally July-Aug; now Oct-Nov. 3-5mo stabilization means FY27 revenue contribution minimal (vs ₹80-90Cr EBITDA expected FY28)

Sep 2026 commercialization (was July-Aug). Minor impact on FY27 run-rate (₹60Cr EBITDA additive)

₹220-230Cr incremental EBITDA from ₹690Cr CAPEX reaffirmed (was prior guidance, no change)

Pass-through to customers. Duty reduction lowers domestic prices; we pass to customers. Margins held. EBITDA impact negligible.

Our capex 3-5x lower than international players (most launching 2028-2029). Operating costs also lower. Product approved by major brands. First-mover advantage.

3-5 months initially. FY28 utilization close to 80% full-year, progressing slowly, close to 100% by year-end.

Maybe 15 days max. Machines under installation & commissioning. Greenfield project, lots to assemble. Very difficult to predict beyond 15 days.

Ecosis ₹80-90Cr EBITDA, mostly FY28. Of ₹220-230Cr estimate, ₹80Cr is Ecosis. Other ₹140-150Cr, ~40%, in FY27 (5 months operation).

Teething problems normal for new projects. 2-3 year pilot run. Equipment tested at scale. Products approved. Stabilization 3-5 months max. Quality, not ROI, driver.

Chips selling at ₹140-150/kg (small qty). Yarn ₹180-190/kg ($2-2.3). Won't disclose cost (proprietary). EBITDA ₹80Cr implies ~₹30/kg margin.

Under discussion with multiple; no MOU yet. Decathlon + American & Efird (A&E threads) signed. Cannot name others until NDA signed.

Plan 2 more plants (1,50,000 TPD each) in 2-3 years, one India one outside. EBITDA margin minimum 30%, can be more.

Q1 end debt ~₹200Cr. Deployed ₹450-500Cr of ₹690Cr. Year-end debt ₹350-370Cr. Net debt ₹150-200Cr. Free cash flow >₹150Cr.

April high raw material prices, couldn't pass full cost. Reduced production to avoid high-cost inventory. Sales improved May-June from stock drawdown.

April margins very low (full quarter impact). Per kg margins not bad. April crisis, recovery in May-June, but quarter average weak.

Only 2 companies globally make this. Demand 3-5M tons annually; supply <100k tons. Brands mandated by EU to use textile-to-textile, not bottle-to-textile.

Yes. Vicinity of ₹15-17Cr inventory gain this quarter.

Euro depreciated Q1, gain visible. But FY27 full-year expect ₹10-15Cr loss. Short-term hedge; long-term loans >5 years unhedged. Historically still in profit on long-term loans.

Power plant surplus steam at high temp/pressure. We extract low-pressure steam, sell ₹3/kg. Customers using gas boilers pay ₹6-7/kg. Cap-efficient for new capacity. Sep 2026 commercialization (delayed from Jul-Aug).

Full-year ₹400Cr top-line add (14-15k DTY add-on to POY, not new topline). FY27 ~₹150-200Cr (5 months utilization at new plant).

Guidance always ₹80-85Cr EBITDA (not ₹75). Payback ~3 years. March quarter was typo/misprint on presentation.

Decathlon + 1 unnamed party (NDA) given contracts. ~15-20% of production committed. In discussions with many clients. Trial orders moving.

Not ROI project; need of the hour. Save ₹4-5Cr annually. Enhances product quality, boosts productivity.

Revenue guidance depends on raw material prices. Very difficult to guide top-line. More confident on bottom-line.

No, not 60% for FY27. Stabilizing period only. Can't guarantee utilization now. 3-4 months to stabilize from November. Will give better number by Dec-Jan.

Mgmt says top-line depends on commodity costs. More confident on bottom-line. PFI expansion adds ₹150-200Cr (5mo utilization).

Currently 6.8%. Domestic PTA capacity (5.6M TPD) coming 2027 will compress raw material premium. Ecosis 30%+ EBITDA margin.

On schedule. Brownfield PFI, Ecosis, steam project, automation, renewable energy.

New chemical recycling tech, greenfield 75 TPD plant commencing Oct-Nov (delayed from Jul-Aug). 3-5mo stabilization ahead. Client commitments 15-20% of production; 80%+ capacity TAM assumed (3-5M tons demand vs <100k tons supply today).

PTA/MEG prices volatile due to Hormuz disruptions, crude oil swings. Q1 April experienced 20%+ raw material inflation, forcing production cuts and inventory buildup to avoid high-cost stock. Customer buying cautious.

Downstream customers (textile mills, apparel manufacturers) maintaining lean inventories and need-based purchasing. April demand collapse (labor unavailable, production halted). Limits Filatex's ability to expand volumes without demand tailwind.

Domestic PTA capacity additions (GAIL Bangalore 2.4M TPD, IOC Paradip 3.2M TPD by Mar 27) will reduce import dependence and compress raw material premium currently charged by domestic producers. Mgmt expects long-term OPM recovery to double-digit, but interim (2-3yr) margin pressure.

Euro depreciation creating notional forex losses on unhedged long-term borrowings (>5 years). Q1 gain visible but FY27 full-year expected ₹10-15Cr loss (vs ₹33Cr gain FY26). ~₹43-48Cr adverse swing.