Filatex India Limited – Investor Presentation Summary

Key Operational Highlights

  • Q2FY27 production volume: 94,763 MT
  • Q2FY27 sales volume: 92,998 MT
  • Existing PFY capacity: 417,240 TPA with >90% utilization
  • Key drivers: Integrated operations, disciplined cost management, and calibrated inventory planning amid volatile raw material environment

Financial Highlights

  • Revenue: ₹1,304.19 crore (Q2FY27), ₹2,449.49 crore (H1FY27)
  • EBITDA: ₹91.03 crore (Q2FY27), ₹168.95 crore (H1FY27)
  • PAT: ₹53.48 crore (Q2FY27), ₹102.62 crore (H1FY27)
  • EBITDA Margin: 6.98% (Q2FY27), 6.90% (H1FY27)
  • YoY comparison: Revenue up 21.22%, PAT up 12.40% in Q2FY27
  • QoQ comparison: Revenue up 13.87%, PAT up 8.83% from Q1FY27
  • Drivers: Higher volumes, improved operational efficiency despite elevated raw material costs

Capex & Cash Flow Health

  • Total growth transformation capex: ₹690 crore (FY26–27)
  • ECOSIS Ltd (Textile-to-Textile Recycling): ₹300 crore capex, expected EBITDA ~₹75-80 crore pa at steady state
  • Renewable Energy Transition: ₹30 crore capex, expected annual savings ₹18-20 crore
  • Steam Distribution: ₹85 crore capex, expected EBITDA ~₹60-65 crore pa at steady state
  • Automation: ₹40 crore capex for auto-doffing and packing lines
  • Expected commissioning: Most projects by end of November/December 2026

Strategic & R&D Initiatives

  • ECOSIS Ltd: India's first commercial circular polyester platform converting end-of-life textiles into virgin-grade polymer & yarn
  • Capacity: 27,000 TPA with expected commissioning by end of December 2026
  • Technology: Chemical depolymerization process for textile-to-textile recycling
  • MoUs signed with Decathlon India and American & Efird Global, LLC for trials of high-quality recycled polyester
  • DSIR-recognised R&D providing durable technological advantage
  • Strategic rationale: Transition from pure virgin PFY producer to integrated circular producer

Industry Trends & Business Environment

  • Global fibre production: ~139 million tonnes in 2025, with ~59% polyester
  • India's textile & apparel exports: grew 17.5% YoY in September 2026
  • Raw material challenges: Elevated PTA and MEG prices due to geopolitical tensions in West Asia
  • Policy support: PLI for Textiles reopened with lower investment thresholds and tenure extended to FY33-34
  • Trade advantages: India-EU FTA reducing tariffs, US tariffs on Indian goods at 10% (par with Bangladesh)
  • Circular economy opportunity: <1% of global fibre currently comes from textile waste

Management Commentary & Growth Outlook

  • Chairman & Managing Director Madhu Sudhan Bhageria: "Q2FY27 was a quarter of steady execution for Filatex"
  • Downstream demand started recovering during the quarter after cautious, need-based buying earlier in the year
  • Recycling and PFY expansion projects expected to be commissioned in Q3FY27
  • Trials of recycled yarn with global brands are ongoing
  • Company positioned for sustainable long-term growth with scale, integrated manufacturing capabilities and early leadership in textile-to-textile recycling

ESG Updates

  • Renewable power share rising from ~26% to ~55% of captive power consumption
  • Sourcing from hybrid wind–solar project in Gujarat
  • ECOSIS platform aligned with EPR, traceability, and circularity requirements
  • ESG embedded in capex, product mix, and customer strategy