Essen Speciality Films Limited (ESFL)
Q2 FY27 results
📅 Next results: 20 Oct 2026 (board meeting)Essen Speciality Films Limited's board meets on 20 Oct 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q4 FY26, Essen Speciality's revenue was ₹32.1 Cr (-28.2% year on year, -22.5% on the previous quarter), and net profit ₹-8.8 Cr (a bigger loss than a year earlier); the operating margin was -35.5%.
| Q4 FY26 (₹ Cr) | Value | YoY vs Q4 FY25 | QoQ |
|---|---|---|---|
| Revenue | ₹32.1 | -28.2% | -22.5% |
| Operating profit | ₹-11.4 | loss widened | loss widened |
| Net profit | ₹-8.8 | loss widened | loss widened |
| EPS (₹) | -3.54 | loss widened | loss widened |
| Operating margin | -35.5% | — | — |
ESFL delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 100.0% of the ESFL shares traded on NSE were taken to delivery, against the stock's own 20-session average of 77.36%. That is higher than usual for this stock. Turnover was only ₹1 lakh, so a handful of trades can move this figure. Volume was under a tenth of its average.
Delivery in the last 5 sessions: 60.0% · 66.7% · 71.8% · 75.0% · 100.0%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Essen Speciality Films Limited (ESFL) has issued the notice for its 24th Annual General Meeting scheduled for September 29, 2026. Key agenda items include the adoption of FY26 audited financial statements, re-appointment of directors, and ratification of cost auditor fees of Rs 40,000. Additionally, the company seeks shareholder approval for executive remuneration terms—including minimum remuneration in case of losses—for key whole-time directors following an FY26 net loss of Rs 9.22 crore. The remote e-voting window is set from September 26 to September 28, 2026, with the cut-off date on September 22, 2026.
- 24th AGM scheduled for Tuesday, September 29, 2026, at 10:30 AM IST at Rajkot, Gujarat.
- Cut-off date for remote e-voting eligibility set for September 22, 2026.
- Remote e-voting begins on September 26, 2026 (09:00 AM IST) and concludes on September 28, 2026 (05:00 PM IST).
- Special resolutions proposed to approve minimum managerial remuneration in the event of loss or inadequate profits for executive directors.
- Ratification of Rs 40,000 plus GST remuneration for cost auditor M/s. Sagar M. Kapadiya & Co. for FY27.
Essen Speciality Films Limited announced the appointment of CA Jinal Hasmukhbhai Rupani and Mrs. Hetal Bhavesh Dobariya as Additional Directors in the category of Non-Executive Independent Directors. Both appointments are effective from September 01, 2026, for a term of 5 consecutive years, subject to shareholder approval. Neither appointee is related to any existing Director of the company or debarred by SEBI. These appointments strengthen the company's board governance across financial, legal, and banking domains.
- Appointment of CA Jinal Hasmukhbhai Rupani as Non-Executive Independent Director for a 5-year term effective September 01, 2026
- Appointment of Mrs. Hetal Bhavesh Dobariya as Non-Executive Independent Director for a 5-year term effective September 01, 2026
- Board meeting approving the appointments was held on August 31, 2026, from 11:00 a.m. to 12:40 p.m.
- Both appointments are subject to the approval of the company's shareholders
Essen Speciality Films Limited has announced the resignation of Mr. Shital Bharatkumar Badshah from his role as Non-Executive Independent Director, effective at the close of business on August 21, 2026. The departure is attributed to personal reasons, with the director confirming no other material factors behind the decision. Mr. Badshah held directorships in zero other listed entities. This standard board update follows the company's FY26 net loss of ₹9.22 crore on revenue of ₹114.70 crore.
- Resignation of Non-Executive Independent Director Mr. Shital Bharatkumar Badshah effective August 21, 2026
- Resignation cited solely for personal reasons with confirmation of no other material reasons
- Directorships and committee memberships held in other listed entities reported as NIL
Shareholders of Essen Speciality Films Limited (ESFL) have unanimously approved the migration of the company's equity shares from the NSE Emerge (SME) platform to the NSE Main Board. The special resolution received 100% 'In Favor' votes from both promoters and participating public shareholders. This transition comes despite a challenging financial year where the company reported a net loss of ‡9.22 cr in FY26. Migration to the Main Board is a significant milestone that typically enhances stock liquidity and institutional visibility.
- 100% of the 1,79,83,960 valid votes cast were in favor of the migration resolution
- Promoter and Promoter Group contributed 1,75,96,240 votes, representing 97.84% of the total votes cast
- Public shareholders contributed 3,87,720 votes, representing 2.16% of the total votes cast
- The resolution was officially deemed passed on July 30, 2026, following a 30-day e-voting period
Financial Performance
Revenue Growth by Segment
Total Operating Income (TOI) grew by 19.45% YoY to INR 142.68 Cr in FY24 from INR 119.44 Cr in FY23. This was driven by a 24% increase in sales volume (number of articles sold), although sales realization per unit remained marginally lower. H1FY25 revenue stood at INR 82.30 Cr.
Geographic Revenue Split
Exports contribute approximately 80% of total revenue, primarily serving global retail giants. Domestic sales account for the remaining 20%. This heavy export focus exposes the company to global demand cycles and shipping logistics.
Profitability Margins
PAT margin decreased by 191 bps to 9.98% in FY24 (from 11.90% in FY23) primarily due to high depreciation expenses. H1FY25 PAT margin further moderated to 9.54% compared to 11.79% in H1FY24 as the company added new clients where initial order profitability is typically lower.
EBITDA Margin
PBILDT margin remained relatively stable at 17.06% in FY24 (compared to 17.23% in FY23). However, H1FY25 PBILDT margin saw a significant compression to 15.98% (down from 21.62% in H1FY24) due to increased R&D costs for new product development and volatile raw material prices.
Capital Expenditure
The company raised INR 41.46 Cr via an IPO in July 2023 to strengthen its net worth base, which improved to INR 136.57 Cr. No major debt-funded capex is planned for the medium term, which is expected to keep the capital structure comfortable.
Credit Rating & Borrowing
The company maintains a 'CARE A-; Stable / CARE A2+' rating. Interest coverage ratio improved significantly to 14.43x in FY24 (from 8.28x in FY23) and reached 57.17x in H1FY25 due to reduced debt levels and improved profitability.
Operational Drivers
Raw Materials
Primary raw materials include Ethylene Vinyl Acetate (EVA), Low-Density Polyethylene (LDPE), and Polypropylene (PP) granules. These are crude oil derivatives, making the cost structure highly sensitive to global oil price fluctuations.
Import Sources
Not specifically disclosed in available documents; however, the company notes low reliance on imports for raw materials, providing a limited natural hedge against forex volatility.
Key Suppliers
Not specifically named in the documents, though the company maintains long-term relationships with a diverse supplier base to mitigate procurement risks.
Capacity Expansion
Operations are centralized at a sole manufacturing facility in Shapar, Rajkot (Gujarat). While specific MTPA figures are not disclosed, the company is focusing on increasing sales volume through existing capacity and niche product modifications.
Raw Material Costs
Raw material costs are a major expense, with 'Cost of Material Consumed' reaching INR 124.50 Cr in FY25 compared to INR 92.48 Cr in FY24, representing a 34.6% increase. This volatility impacts operating margins due to the timing difference between procurement and sales realization.
Manufacturing Efficiency
The company reported a 24% increase in articles sold in FY24, indicating high capacity utilization. Efficiency is driven by specialized R&D for customer-specific plastic articles.
Logistics & Distribution
Distribution is primarily export-oriented; costs are sensitive to international freight rates, though specific INR values for logistics were not disclosed.
Strategic Growth
Expected Growth Rate
19-20%
Growth Strategy
Growth is targeted through the addition of new reputed MNC clients and expanding the product basket in niche segments. The company is investing in R&D for new product development to secure initial orders from global retailers, which eventually scale into high-volume, stable-margin business.
Products & Services
Specialized plastic articles including bathroom mats, curtain rings, hooksets, kitchen shelf liners, coasters, chopping boards, and home decor items like artificial plants and flowers.
Brand Portfolio
ESFL (Essen Speciality Films Limited). The company primarily operates as a specialized manufacturer for global brands rather than selling under its own consumer labels.
New Products/Services
Continuous development of tailor-made plastic articles for the home furnishing segment. New product development for recently added clients is expected to contribute to volume growth in FY25-26.
Market Expansion
Focusing on deepening penetration within the export market, specifically targeting global retail giants like IKEA, Walmart, and K-Mart to leverage its compliance with international standards.
Market Share & Ranking
Operates in a niche segment of the highly fragmented plastic industry. While specific ranking is not provided, it is noted for its 'superior operating profitability' compared to smaller fragmented players.
Strategic Alliances
Shares common management with Rajoo Engineers Limited (REL), providing access to deep industry expertise in plastic processing and machinery.
External Factors
Industry Trends
The plastic industry is evolving toward specialized, high-quality modified articles. ESFL is positioned in a niche segment that avoids the 'commodity trap' of the fragmented market by focusing on tailor-made products for MNCs.
Competitive Landscape
Highly fragmented with numerous small domestic players and stiff competition from large-scale Chinese manufacturers who benefit from economies of scale.
Competitive Moat
Moat is built on long-standing relationships (20+ years) with global retailers and the ability to meet stringent international quality standards. This is sustainable due to high switching costs for retailers who require specific, modified plastic articles.
Macro Economic Sensitivity
Highly sensitive to global consumer spending trends and crude oil price cycles. A slowdown in the global housing or home improvement market would reduce demand for home decor and kitchen articles.
Consumer Behavior
Increasing demand for organized home decor and functional kitchen/bathroom plastic-ware in developed markets drives the demand for ESFL's product basket.
Geopolitical Risks
Trade barriers or shifts in sourcing preferences away from India toward China (or vice versa) by global retailers represent a significant risk to the export-heavy business model.
Regulatory & Governance
Industry Regulations
Subject to plastic waste management rules and international safety standards for consumer-facing plastic articles (kitchen/bathroom use).
Environmental Compliance
The company must comply with international plastic manufacturing standards to maintain its status as a supplier to global MNCs, though specific ESG costs were not disclosed.
Taxation Policy Impact
The effective tax rate is approximately 25-28%, with current tax of INR 2.78 Cr on a Profit Before Tax of INR 9.85 Cr in H1FY25.
Legal Contingencies
The auditor's report indicates an unmodified opinion with no major pending litigation values disclosed that would have a material effect on the financial statements.
Risk Analysis
Key Uncertainties
Raw material price volatility (crude oil derivatives) and the ability to maintain margins while onboarding new, large-scale clients are the primary business risks, with potential margin impact of 200-300 bps.
Geographic Concentration Risk
80% revenue concentration in the export market, making the company vulnerable to international trade policy changes.
Third Party Dependencies
High dependency on a few global retail giants for the majority of sales volume.
Technology Obsolescence Risk
Low risk in the near term as the company uses specialized plastic processing; however, shifts toward bio-plastics or alternative materials could require future tech pivots.
Credit & Counterparty Risk
Receivables quality is high as the company deals with reputed MNCs, though the collection period marginally increased to 48 days in FY23.
