Financial Performance Highlights

Consolidated Performance Q2 FY27:

  • Revenue increased by 41.2% YoY and 21.1% QoQ
  • EBITDA reached ₹60.6 crores, representing 172% YoY growth
  • Sales volume increased to 49,382 metric tons from 40,113 metric tons in previous quarter
  • EBITDA per ton was ₹12,281 compared to ₹14,902 in Q1 FY27

Standalone Performance Q2 FY27:

  • Revenue increased by 22% YoY and 20.7% QoQ
  • EBITDA reached ₹24.51 crores, representing 200% YoY growth
  • Sales volume grew to 31,808 tons from 25,321 metric tons in Q1
  • Plant utilization at approximately 99%
  • EBITDA per ton was ₹7,704 compared to ₹9,396 in Q1 FY27

H1 FY27 Performance:

  • Consolidated turnover increased by 33.7% YoY
  • Consolidated EBITDA of ₹120.42 crores compared to ₹58.63 crores in corresponding period last year
  • Generated operating cash flows of ₹56.91 crores during H1 FY27

Operational Updates

Warangal Facility Operations:

  • Operated at approximately 67% utilization during Q2 FY27
  • Fire incident occurred in August 2026 at rPSF division, halting operations
  • Production loss estimated at 2,500-3,000 tons quarterly
  • Fixed costs continue to be incurred during shutdown
  • Quantum of loss still under assessment but adequately covered under insurance
  • Restoration activities progressing, expected reinstatement by Q4 FY27
  • OEM assessment completed in current month (November 2026)

FSSAI Approval:

  • Fourth rPET granule production line at Warangal received FSSAI approvals for food-grade applications
  • Line now eligible to cater to growing food-grade packaging market
  • Utilization was running at about 60% before approval, now increasing ramp-up
  • Expected quarterly volume increase for food grade rPET: 1,500-2,000 tons

Expansion Projects

Current Expansion:

  • Fifth rPET granules production line under installation
  • Expected commissioning during Q4 FY27
  • Will enhance capacity and strengthen ability to serve food-grade rPET demand

Operational Optimization:

  • Shifting Kanpur rPSF production line to Temra unit to improve operational efficiencies
  • Objective to optimize costs and create more integrated manufacturing setup

Future Capacity Plans:

  • Targeting 100,000 tons capacity in Warangal
  • Planning additional capacities in Northern India or other locations
  • For 50,000 ton capacity: capex estimated at ₹250-300 crores
  • Timeline: 12-15 months to go on stream for new capacities
  • Expecting 150,000 tons of rPET granules by end of FY28

Market and Demand Environment

Demand Conditions:

  • Demand remains strong and healthy across legacy business and subsidiary operations
  • Elevated polymer prices supporting recycled polymer demand
  • Government mandate of 40% recycled content in place
  • Current FSSAI approved capacity in India: approximately 4.2-4.5 lakh tons
  • Company's approved capacity: 65,000 tons
  • Market share: approximately 20% (5,000 tons monthly out of 25,000-30,000 tons market sales)

Pricing and Contracts:

  • 85-90% of capacities on contractual basis
  • Contracts are annual (1 year duration) with formula-based pricing
  • Pricing mechanism: raw material prices plus yield plus fixed conversion cost
  • Price pass-through with 1-month lag (current month prices passed to next month)
  • No negotiation on contract formula pricing

Raw Material Environment:

  • PET bottle scrap prices and finished product prices witnessed sharp fluctuations
  • Volatility driven by movements in crude oil and polymer markets
  • Geopolitical developments in West Asia contributing to value chain volatility
  • Raw material prices moving in tandem with finished goods prices
  • No expectation of inventory gains going forward

Financial Guidance

FY27 Outlook:

  • Maintaining EBITDA guidance of ₹225-250 crores
  • Expecting towards higher end around ₹235-240 crores
  • Demand fundamentals remain healthy
  • Expansion projects progressing as scheduled
  • Momentum expected to continue through remainder of FY27

Long-term Targets:

  • Targeting 25% market share of expected 1 million ton rPET demand
  • Expecting rPET demand of around 1 million tons of overall PET consumption
  • EBITDA per kg guidance: ₹20-22 for expanded capacities
  • Optimum capacity utilization target: 85% for Warangal unit

Promoter Pledge Update

  • Promoter pledge increased due to funds borrowed for warrant conversion last year
  • Increase attributed to covering fall in share prices
  • Expected to come down from next financial year