ESTER - Ester Industries
📢 Recent Corporate Announcements
Ester Industries has issued a postal ballot notice to re-appoint its Chairman & CEO, Arvind Singhania, and Executive Director, Pradeep Kumar Rustagi, for three-year terms starting April 2026. A major highlight is the request for shareholder approval for material related party transactions (RPT) worth up to ₹1,463 crore with its associate company, Ester Loop Infinite Technologies, for FY 2026-27. Additionally, the company seeks a ₹380 crore limit for corporate guarantees from its promoter entity, Wilemina Finance Corporation. These resolutions aim to ensure leadership continuity and facilitate large-scale operational funding and trade.
- Re-appointment of Arvind Singhania as MD (Chairman & CEO) for 3 years effective April 1, 2026
- Proposed material Related Party Transactions with associate ELITe totaling up to ₹1,463 crore for FY27
- Approval sought for corporate guarantees up to ₹380 crore from holding company Wilemina Finance Corporation
- Re-appointment of Pradeep Kumar Rustagi as Whole-Time Director for a further 3-year term
- Postal ballot results to be declared on or before March 23, 2026
Ester Industries reported a subdued Q3 FY26 with consolidated revenue declining 2.1% YoY to INR 343.5 crores and EBITDA falling sharply by 67.7% to INR 21 crores. The performance was hit by Chinese dumping of BOPET films, high US trade tariffs, and one-time labor code implementation costs of INR 2.68 crores. However, the Specialty Polymers segment remained a bright spot, posting a 72.9% revenue growth and a 61.8% increase in EBIT. Management anticipates a recovery by mid-March 2026 following a US-India trade deal expected to reduce tariffs from 50% to 18%.
- Consolidated EBITDA margin compressed to 6.1% from 18.6% YoY due to aggressive price competition and forex losses.
- Specialty Polymers segment saw robust volume growth of 46.4% and revenue growth of 72.9% in Q3 FY26.
- US-India trade deal expected by mid-March 2026 to reduce BOPET film tariffs from 50% to 18%, boosting future margins.
- The 'Elite' chemical recycling JV project is progressing with land acquisition expected by April-May 2026.
- Polyester film segment revenue declined 8.9% YoY to INR 287.7 crores due to lower realizations and maintenance shutdowns.
Ester Industries Limited has filed its monthly compliance report under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The report, provided by Mas Services Limited (RTA), confirms that 600 shares were dematerialized during the month of January 2026. All processed share certificates have been mutilated and cancelled as per regulatory requirements. This is a standard administrative filing and does not reflect any change in the company's operational or financial status.
- Total of 600 shares were dematerialized in January 2026 via NSDL.
- Zero shares were dematerialized or rematerialized through CDSL during the period.
- RTA confirmed all certificates were processed and mutilated within the 15-day regulatory window.
- Specific transactions included 300 shares for Tara Chand Jain and 300 shares for Neelam Suri.
Ester Industries has officially released the audio recording of its earnings conference call held on February 9, 2026. The call discussed the company's financial performance for the third quarter and the nine-month period ending December 31, 2025. This disclosure is a routine regulatory requirement under SEBI (LODR) Regulations, 2015, providing transparency into management's discussion. Investors can access the recording via the provided link on the company's website to evaluate operational updates.
- Earnings call conducted on February 9, 2026, following the Q3 FY26 results.
- Discussion covered financial performance for the nine-month period ended December 31, 2025.
- Audio recording link made available for public access on the company's official website.
- Complies with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Ester Industries reported its Q3 FY26 performance, where Polyester Films accounted for 85% of revenue and Specialty Polymers 15%. The company is navigating margin pressures in the BOPET segment due to US trade tariffs and predatory pricing from China, leading to a revised value-added product target of 25%. A key strategic highlight is the $180 million ELITe joint venture with Loop Industries, which has secured a multi-year offtake agreement with Nike for sustainable materials. Commercial operations for this JV are expected to commence in H2 CY 2027.
- ELITe JV with Loop Industries involves a $180 million investment for chemical recycling with H2 CY 2027 start date
- Secured a multi-year offtake agreement with Nike as an anchor customer for the new recycling facility
- Value-added product share target for Q4 FY26 revised to 25% from 30% due to US trade tariff impacts
- Total installed capacity stands at 108 KTPA for Polyester Films and 30 KTPA for Specialty Polymers
- Polyester Film segment margins are currently under pressure from Chinese imports and global trade dynamics
Ester Industries reported a challenging Q3 FY26 with consolidated revenue declining 2.1% to ₹343.5 crore and a net loss of ₹12.4 crore, down from a profit of ₹24.8 crore in the previous year. The performance was severely impacted by high US trade tariffs (50%) and predatory pricing from Chinese BOPET film imports, causing EBITDA to crash 67.7% to ₹21.0 crore. However, the Specialty Polymers segment remained a bright spot, with volume growth of 46.4% and EBIT rising 61.8% to ₹16 crore. Management is optimistic about a recovery following a proposed US-India trade deal in March 2026 which could slash tariffs to 18%.
- Consolidated EBITDA margins contracted sharply from 18.5% to 6.1% due to external trade pressures.
- Specialty Polymer segment EBIT grew 61.8% YoY to ₹16 crore, driven by a 46.4% increase in sales volume.
- rPET revenue surged approximately 4x YoY to ₹15.2 crore on the back of 286.7% volume growth.
- Currency volatility and Rupee depreciation led to significant mark-to-market losses during the nine-month period.
- US-India trade deal expected by mid-March 2026 is projected to reduce import tariffs from 50% to 18%.
Ester Industries has approved the re-appointment of co-founder Mr. Arvind Singhania as Managing Director and CEO for a three-year term effective April 1, 2026. Mr. Pradeep Kumar Rustagi has also been re-appointed as Whole-time Director for the same period, ensuring leadership continuity through March 2029. The board concurrently approved the un-audited financial results for the quarter ended December 31, 2025. Additionally, the company is seeking shareholder approval for material related party transactions with Ester Loop Infinite Technologies for FY 2026-27.
- Re-appointment of Mr. Arvind Singhania as MD & CEO for a 3-year term starting April 1, 2026.
- Re-appointment of Mr. Pradeep Kumar Rustagi as Whole-time Director for a 3-year term starting April 1, 2026.
- Approval of un-audited standalone and consolidated financial results for Q3 FY26.
- Proposed material related party transactions with Ester Loop Infinite Technologies Private Limited for FY 26-27.
- Leadership continuity maintained with executives possessing over 38 and 40 years of experience respectively.
The Board of Ester Industries has approved the re-appointment of Mr. Arvind Singhania as Managing Director (CEO) and Mr. Pradeep Kumar Rustagi as Whole-time Director for three-year terms effective April 1, 2026. The company also reviewed its financial results for the quarter ended December 31, 2025, though specific financial figures were not included in the primary announcement text. Additionally, the board has proposed material related party transactions with Ester Loop Infinite Technologies for FY 2026-27, which will require shareholder approval via postal ballot.
- Re-appointment of Mr. Arvind Singhania as Executive Chairman & CEO for a 3-year term until March 2029.
- Re-appointment of Mr. Pradeep Kumar Rustagi as Executive Director-Corporate Affairs for a 3-year term.
- Approval of Material Related Party Transactions with Ester Loop Infinite Technologies Private Limited for FY 2026-27.
- Board meeting concluded on February 6, 2026, approving un-audited standalone and consolidated financial results.
- Shareholder approval to be sought via Postal Ballot for leadership re-appointments and related party transactions.
Ester Industries Limited has scheduled its earnings conference call for Monday, February 9, 2026, at 3:00 PM IST. The management will discuss the financial performance for the third quarter and nine months ended December 31, 2025. The discussion is expected to cover the company's performance in Polyester Films and Specialty Polymers, as well as its strategic outlook. Ester currently maintains a CRISIL A- long-term credit rating and continues to focus on its innovation pipeline, including 18+ granted patents.
- Earnings call scheduled for February 9, 2026, at 3:00 PM IST via virtual mode.
- Focus on financial results for the quarter and nine months ended December 31, 2025.
- Company maintains a CRISIL long-term credit rating of A- and short-term rating of A2+.
- Ester Industries highlights a portfolio of 18+ granted patents and a strategic JV with Loop Industries.
Ester Industries has approved the grant of 19,188 stock options to Mr. Kunal Tank, the Chief Marketing Officer for Specialty Polyesters/Polymers, under its 2024 ESOP plan. The options are priced at INR 79 per share, which is a 20% discount to the fair market value of INR 98.81 recorded on January 7, 2026. Each option is convertible into one equity share after a minimum vesting period of one year. This grant is part of the company's strategy to align executive incentives with long-term shareholder value.
- Grant of 19,188 stock options to the CMO of Specialty Polyesters/Polymers
- Exercise price set at INR 79, representing a 20% discount to the FMV of INR 98.81
- Vesting period extends up to 5 years with a mandatory 1-year cliff from the grant date
- Exercise period is valid for 5 years from the date of respective vesting
Ester Industries Limited has filed its monthly compliance report under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. During December 2025, the company processed the dematerialization of 2,900 shares in total. Specifically, 2,400 shares were dematerialized through NSDL and 500 shares through CDSL. The Registrar and Share Transfer Agent confirmed that all physical share certificates were mutilated and cancelled as per regulatory requirements.
- Processed dematerialization of 2,400 shares via NSDL in December 2025
- Processed dematerialization of 500 shares via CDSL during the same period
- Zero rematerialization requests were recorded for the month
- Confirmed compliance with the 15-day processing timeline for certificate cancellation
Ester Industries Limited has announced the closure of its trading window for all designated persons starting January 1, 2026. This action is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the upcoming financial results. The closure pertains to the un-audited financial results for the quarter and nine-month period ending December 31, 2025. The window will remain closed until 48 hours after the results are officially declared to the stock exchanges.
- Trading window closure effective from January 1, 2026
- Closure is related to financial results for the period ending December 31, 2025
- Window to reopen 48 hours after the declaration of un-audited financial results
- Complies with SEBI (Prohibition of Insider Trading) Regulations, 2015
Ester Industries' joint venture, ELITe, has awarded a detailed engineering contract to Toyo Engineering India for its 'Infinite Loop India' project in Bharuch, Gujarat. The facility is designed to produce 70,000 metric tonnes of PET resin annually, targeting the packaging and textile sectors. The project has already secured Nike as an anchor customer through a multi-year offtake agreement and is on track for completion by the end of 2027. Financial health remains strong with USD 5 million in land acquisition savings and multiple debt financing term sheets received from international lenders.
- Awarded detailed engineering contract to Toyo Engineering India for the 70,000 MT annual capacity PET recycling plant
- Project construction is projected for completion by the end of 2027 in Bharuch, Gujarat
- Secured Nike as a multi-year anchor customer, providing high commercial visibility
- Realized USD 5 million in savings from land acquisition, ensuring the project remains on budget
- Debt financing process is on schedule with multiple term sheets received from international lenders
Ester Industries Limited has scheduled a plant visit for analysts and institutional investors on December 19, 2025, at its Hyderabad plant. The meeting, scheduled for 1:00 P.M., includes B&K Securities Group, Samatva Investments, Hornic Investment, and HNIs. Discussions will be based on publicly available information, and no unpublished price-sensitive information will be shared. The schedule is subject to change due to exigencies.
- Plant visit scheduled for December 19, 2025
- Meeting time is at 1:00 P.M.
- Location of the plant visit is Hyderabad
- B&K Securities Group is among the attendees
Ester Industries Limited has informed the Exchange regarding the dematerialized shares during November 2025, complying with SEBI regulations. A total of 200 shares were dematerialized under NSDL and 100 shares under CDSL. The RTA, MAS Services Limited, confirmed that all share certificates have been mutilated and cancelled as per Regulation 74(5). This is a routine compliance update for investors.
- 200 shares dematerialized under NSDL in November 2025
- 100 shares dematerialized under CDSL in November 2025
- RTA confirmed all share certificates mutilated as per Regulation 74(5)
- NSDL demat includes DRN 10000000038162 for 100 shares
- CDSL demat includes DRN 1699153 for 100 shares
Financial Performance
Revenue Growth by Segment
Consolidated revenue grew 7% YoY to INR 357.24 Cr in Q2 FY26. Specialty Polymers revenue grew 39% YoY to INR 57.36 Cr. Ester Filmtech Limited (EFL) revenue grew 20.5% YoY to INR 119.73 Cr. rPET revenue grew 271% from INR 3.27 Cr to INR 12.15 Cr.
Geographic Revenue Split
Not disclosed in percentage terms, but overseas margins were significantly impacted by US trade tariffs, while domestic margins were affected by heavy imports at predatory pricing.
Profitability Margins
Consolidated EBITDA margin was 4.85% in Q2 FY26, down from 12.8% in Q2 FY25. Net loss for the quarter was INR 15.78 Cr. Adjusted EBITDA margin (excluding forex/MTM losses) would have been 7.70% (INR 28 Cr).
EBITDA Margin
Consolidated EBITDA margin stood at 4.85% in Q2 FY26, representing a 59.2% YoY decrease from INR 42.47 Cr to INR 17.33 Cr. Standalone EBITDA margin was 5.33% (INR 14 Cr).
Capital Expenditure
INR 85 Cr was invested in a new extruder in Hyderabad which commenced production in late September 2025. The ELITe project involves a share warrant raise of INR 175 Cr, with INR 85 Cr already received.
Credit Rating & Borrowing
CRISIL A-/Negative/CRISIL A2+ (downgraded from CRISIL A/Negative/CRISIL A1 in Dec 2023). Yearly debt obligations are INR 80-90 Cr over the medium term.
Operational Drivers
Raw Materials
PTA (Purified Terephthalic Acid) and MEG (Monoethylene Glycol) are primary virgin materials. The ELITe project will utilize cheap textile waste as raw material.
Import Sources
Not specifically disclosed by country, but PTA and MEG are benchmarked to international pricing, and heavy imports of finished films are noted from overseas.
Capacity Expansion
Current capacity includes a 48,000 MTPA plant in Telangana (EFL). A new extruder in Hyderabad was commissioned in September 2025. The ELITe project is a major upcoming expansion in JV with Loop Industries.
Raw Material Costs
Raw material costs for PTA and MEG are benchmarked to international prices. ELITe project aims to reduce costs by using textile waste instead of virgin materials.
Manufacturing Efficiency
EFL reported a 39.7% YoY growth in sales volume, reaching 10,374 MT in Q2 FY26. Capacity utilization ramping up at the Telangana plant is a key monitorable.
Strategic Growth
Growth Strategy
Strategy focuses on strengthening the Specialty Polymer portfolio (39% YoY revenue growth), improving operational efficiency, and advancing the circular economy vision through the ELITe JV project with Loop Industries.
Products & Services
BOPET Thin Films, Specialty Polymers, rPET (recycled Polyester), Polyester Chips, and Polyester Films for packaging, industrial, and consumer applications.
Brand Portfolio
Ester Industries, Ester Filmtech Limited (EFL), Ester Loop Infinite Technology Limited (ELITe).
New Products/Services
rPET revenue grew to INR 12.15 Cr. New extruder in Hyderabad started production in Q2 FY26. ELITe project will produce sustainable polyester from textile waste.
Market Expansion
ELITe project targets 100% exports to international markets. Specialty Polymers segment grew 39% YoY despite trade barriers.
Market Share & Ranking
Established market position in packaging films. India's BOPET Thin Film market is estimated at 1350 KT for 2025.
Strategic Alliances
Joint Venture with Loop Industries for the ELITe project (Ester Loop Infinite Technology Limited) with a 50:50 equity contribution stage-wise.
External Factors
Industry Trends
Shift toward circular economy and sustainability (PWMR rules). Industry currently faces a demand-supply imbalance leading to margin pressure (EBITDA down 59.2% YoY).
Competitive Landscape
Intense competition from domestic players and heavy imports at predatory pricing levels.
Competitive Moat
Moat built on a diversified product profile (Specialty Polymers + Films) and long track record. Sustainability-led ELITe project using textile waste is intended to create a long-term cost advantage.
Macro Economic Sensitivity
Highly sensitive to global demand-supply scenarios in flexible packaging and international crude-linked raw material prices (PTA/MEG).
Consumer Behavior
Increasing demand for sustainable packaging solutions, evidenced by rPET revenue growing from INR 3.27 Cr to INR 12.15 Cr.
Geopolitical Risks
US Trade Tariffs are a major risk, currently impacting overseas margins in the Specialty Polymers and Film segments.
Regulatory & Governance
Industry Regulations
Operations are subject to Plastic Waste Management Rules (PWMR) and international trade regulations like US Trade Tariffs.
Environmental Compliance
Focus on Plastic Waste Management Rules (PWMR) and circular economy through the ELITe project.
Risk Analysis
Key Uncertainties
Adverse demand-supply scenario in flexible packaging (margins down to 4.85%). Volatility in PTA/MEG prices. Successful ramp-up of new Telangana and Hyderabad capacities.
Geographic Concentration Risk
Significant exposure to US market (impacted by tariffs) and domestic Indian market (impacted by imports).
Third Party Dependencies
Dependency on Loop Industries for the ELITe JV technology and 50% equity funding.
Technology Obsolescence Risk
Mitigated by transitioning to sustainability-driven and innovation-led product solutions.
Credit & Counterparty Risk
Not disclosed, but liquidity is 'Adequate' with INR 114 Cr cash and INR 75 Cr unutilized bank lines.