• The document is a regulatory filing containing the transcript of the Q2 and H1 FY27 Earnings Conference Call for Century Enka Limited, conducted on Wednesday, 28th October, 2026.
  • The call was hosted by Valorem Advisors, the company's Investor Relations representatives. Management participants included Mr. Suresh Sodani (Managing Director and CEO) and Mr. Yogesh Shah (Chief Financial Officer).
  • The purpose of the call was to discuss the company's fundamental business and financial performance for the second quarter and first half of Financial Year 2027.

Financial Performance Highlights:

Q2 FY27 Results:

  • Revenue from operations: ₹558 crores (37% YoY growth)
  • EBITDA: ₹33 crores (4% YoY growth)
  • EBITDA margin: 5.88%
  • Profit after tax: ₹19 crores (17% YoY decline)
  • PAT margin: 3.31%

H1 FY27 Results:

  • Revenue from operations: ₹1113 crores (37% YoY growth)
  • EBITDA: ₹119 crores (130% YoY growth)
  • EBITDA margin: 10.66%
  • Profit after tax: ₹80 crores (113% YoY growth)
  • PAT margin: 7.21%

Segmental Performance (Q2 FY27):

  • Total volume: 20,162 metric tons (13% YoY growth)
  • Tire cord fabric sales: ₹251 crores (37% YoY growth)
  • Filament yarn sales: ₹293 crores (39% YoY growth)

Segmental Performance (H1 FY27):

  • Total volume: 39,361 metric tons (13% YoY growth)
  • Tire cord fabric sales: ₹557 crores (53% YoY growth)
  • Filament yarn sales: ₹523 crores (30% YoY growth)

Operational and Strategic Updates:

  • The automotive sector witnessed healthy momentum during Q2 with passenger and commercial vehicles as key growth drivers, supported by festive demand.
  • NTCF demand remained healthy but sales volume was impacted by increased imports booked by tire companies as a risk mitigation measure during raw material uncertainty.
  • The company continues to focus on strengthening market position while navigating competitive pricing pressures and raw material cost volatility.
  • The PTCF (Polyester Tire Cord Fabric) approval process is progressing, with commercial sales expected to commence in Q4 FY27.
  • The nylon filament yarn business saw improved sales volume during the quarter but margins remained constrained by competitively priced imports from China.
  • The company is prioritizing value-added products and enhancing product mix, with VAPs expected to reach ~50% of nylon filament yarn portfolio.
  • Raw material volatility significantly impacted operating margins, with caprolactam prices ranging between $2000-$2100 during the quarter.
  • Energy costs emerged as a pressure point with higher grid power tariffs and elevated LNG prices.
  • The company is strengthening hybrid power capacity which is expected to deliver annualized benefits of ~₹10 crores starting from Q4 FY27.
  • Capacity utilization was at ~85% in Q2 FY27, with normative range between 80-90%.
  • Capital work-in-progress increased to ~₹38 crores in H1 FY27 from ~₹13 crores in FY26, covering Mother Yarn expansion at Pune, VAPs capacity increase at Bharuch, energy saving CAPEX, and asset replacements.
  • Inventory increased to ~₹313 crores at H1 FY27 end primarily due to higher raw material prices.
  • Exports contribute 4-5% of total revenue, with potential opportunities from EU and UK FTAs.
  • The company maintains a strong net cash position with limited borrowings.

Management Guidance:

  • The company targets normalized EBITDA margins between 7-10%.
  • The outlook for coming quarters depends on deficit monsoon impact, inflation, and interest rate movements.
  • Geopolitical developments and crude oil price fluctuations remain key near-term uncertainties.

Additional Notes Section

  • The document includes the complete transcript of the earnings conference call with analyst Q&A session.
  • The transcript is available on the company's website at www.centuryenka.com.
  • The filing includes standard cautionary statements about forward-looking statements being subject to risks and uncertainties.