Century Enka Q2 PAT Down 17% YoY to ₹185 Mn

Revenue from Operations: ₹5,582 Mn, increased 36.6% YoY (from ₹4,087 Mn in Q2-FY26) and 0.7% QoQ (from ₹5,543 Mn in Q1-FY27).

EBITDA: ₹328 Mn, increased 3.8% YoY (from ₹316 Mn) but declined 61.7% QoQ (from ₹857 Mn).

EBITDA Margin: 5.88%, contracted 185 basis points YoY (from 7.73%) and 958 basis points QoQ (from 15.46%).

Profit Before Tax (PBT): ₹274 Mn, increased 7.9% YoY (from ₹254 Mn) but declined 65.6% QoQ (from ₹797 Mn).

Profit After Tax (PAT): ₹185 Mn, declined 17.0% YoY (from ₹223 Mn) and 70.0% QoQ (from ₹617 Mn).

PAT Margin: 3.31%, contracted 215 basis points YoY (from 5.46%) and 782 basis points QoQ (from 11.13%).

Basic/Diluted EPS: ₹8.46 (on face value of ₹10), declined 17.2% YoY (from ₹10.22).

Tax Expense: ₹89 Mn, increased 187.1% YoY (from ₹31 Mn).

Other Income: ₹99 Mn, increased 17.9% YoY (from ₹84 Mn).

Depreciation: ₹147 Mn, increased 8.9% YoY (from ₹135 Mn).

Finance Cost: ₹5 Mn, decreased 37.5% YoY (from ₹8 Mn).

Revenue from Operations: ₹11,125 Mn.

EBITDA: ₹1,186 Mn.

EBITDA Margin: 10.66%.

PAT: ₹802 Mn.

PAT Margin: 7.21%.

Basic/Diluted EPS: ₹36.70 (on face value of ₹10).

Tyre Cord Fabric (Reinforcement) Business:

The auto sector delivered strong performance in Q2, with passenger and commercial vehicles as key growth drivers due to festive demand.
Nylon Tyre Cord Fabric (NTCF) demand remained healthy, but sales were impacted by a surge in imports.
Margins were impacted by pricing pressure and volatility in raw material & fuel prices.
The Polyester Tyre Cord Fabric (PTCF) approval process is progressing, with commercial sales expected to start in Q4 FY27.

Yarn Business:

Festive season demand supported higher sales volume of nylon filament yarn.
Margins were impacted by continued imports of base/lower grade yarns from China at low prices and high raw material price volatility.
The company continues to focus on better-margin Value Added Products, with capacity addition during Q2.

Raw Materials / Power & Fuel Costs:

Q2 remained challenging due to high volatility in raw material prices.
Power cost increased due to higher grid power tariff at the Bharuch facility and increased LNG rates.
The company is increasing hybrid power capacity to mitigate costs, with benefits expected from Q4 FY27.
Margins normalized in Q2 compared to Q1, which had benefitted from low-cost opening stocks.

The company cited deficit monsoon, high inflation, and rising interest rates as factors that could impact demand in the next two quarters.
War situations, geopolitical uncertainty, and crude prices may influence demand and margins in the near term.

Face Value: ₹10.00

CMP (NSE): ₹554.60

52 Week High/Low: ₹671.65 / ₹371.20

Market Capitalization: ₹12,118.34 Mn

Number of Shares Outstanding: 21.85 Mn

1 Year Average Trading Volume: 119,690

Total Assets: ₹19,230 Mn (increased from ₹18,514 Mn in FY26).

Net Worth: ₹15,529 Mn (increased from ₹14,959 Mn in FY26).

Non-current Assets: ₹9,643 Mn (includes Property, Plant & Equipment of ₹7,521 Mn and Capital Work in Progress of ₹383 Mn).

Current Assets: ₹9,587 Mn (includes Inventories of ₹3,132 Mn, Trade Receivables of ₹2,163 Mn, and Loans of ₹1,500 Mn).

Cash and Cash Equivalents: ₹181 Mn.

Total Borrowings: ₹199 Mn (₹60 Mn non-current, ₹139 Mn current).

Established in 1965 by Late Shri B. K. Birla in collaboration with AKZO Nobel of Netherlands.
One of the largest producers of Nylon Filament Yarn (NFY) and Nylon Tyre Cord Fabric (NTCF) in India.
Two manufacturing facilities in Pune, Maharashtra and Bharuch, Gujarat, with a total capacity of ~92,000 MTPA.
Key brands: 'Enkalon' for high-quality yarn and newly launched 'neunyl' for chemically recycled yarn from waste.