Indo Rama Q2 FY27 PAT Surges 202% YoY

Total Income: Increased 10% YoY to ₹1,344 crores (from ₹1,222 crores in Q2 FY26)
EBITDA: Increased 46.4% YoY to ₹117.7 crores (from ₹80.4 crores)
EBITDA Margin: Expanded 220 bps to 8.8% (from 6.6%)
Finance Cost: Declined to ₹29 crores (from ₹33.6 crores)
Profit After Tax (PAT): Increased 201.8% YoY to ₹74.1 crores (from ₹24.6 crores)
PAT Margin: Improved to 5.5% (from 2%)

Total Income: ₹2,284 crores (declined 9.7% from ₹2,531 crores in H1 FY26 due to supply chain issues)
EBITDA: Increased 24.9% YoY to ₹225.7 crores (from ₹180.7 crores)
EBITDA Margin: Expanded 280 bps to 9.9% (from 7.1%)
Finance Cost: Reduced to ₹58.4 crores (from ₹62.6 crores)
Profit After Tax (PAT): Increased 78.3% YoY to ₹137.8 crores (from ₹77.3 crores)
PAT Margin: Improved to 6% (from 3.1%)
Net Cash from Operating Activities: ₹328.5 crores (compared to approximately ₹92 crores in H1 FY26)

Net Debt: Reduced 23.5% to approximately ₹852 crores (from ₹1,113 crores at FY26 end)
Debt-to-Equity: Improved to 1.31 times (from 2.18 times)
Return on Equity (TTM): 38.2% (from 33.85% at FY26 end)
Return on Capital Employed (TTM): 27% (from 20.34%)

Integrated Manufacturing Capacity: 6.72 lakh tonnes per annum comprising:
Polyester Staple Fiber: 2.31 lakh tonnes
Draw Textured Yarn: 1.7 lakh tonnes
Bottle-grade PET Resin: 2.28 lakh tonnes
Captive Power Capacity: 71.08 megawatts backup with sanctioned DISCOM load of 51 megawatts
Capacity Utilization: Improved from 55% in FY24 to 68% in FY26, with further improvement in FY27
Export Contribution: 5.59% of total operating revenue to 28 countries
Domestic Reach: 19 states and Union Territories

Board Approval: ₹200 crores investment across company and wholly-owned subsidiary Indorama Ventures Yarns Private Limited
Project Scope: Specialty filament and specialty fiber production at Butibori complex
Expected Commissioning: Within Calendar Year 2027
Funding: Combination of term loans and internal accruals
Expected Impact: 15% growth in top line, 20% growth in EBITDA with payback of less than 2 years

Raw Material Dynamics: Chinese competition reduced due to currency depreciation (Chinese yuan at ₹14.5 vs ₹12 in early 2025)
Domestic PTA Capacity: Indian Oil (1.2 MTPA at Paradip) and GAIL (1.25 MTPA at Mangalore) projects expected to broaden domestic sourcing options
Trade Agreements: India-UK agreement (effective July 2026) and potential India-EU FTA/US bilateral agreement creating export opportunities
Crude Oil Impact: Current price at USD 115, with company able to pass on cost increases to customers
Margin Outlook: Management expects to maintain current EBITDA margins of ~10% in next two quarters
Volume Outlook: FY26 volume was 475,000 tonnes; FY27 expected around 400,000 tonnes due to supply chain issues; target to return to 475,000+ tonnes next year

Specialty Expansion: Will include cationic, colored, dope-dyed yarns and hollow fiber production
PET Chip Utilization: Currently operating at 60% capacity with plans to increase utilization
Export Target: Aim to return to 20-25% export contribution (currently 6%) with improved raw material availability
Pricing Mechanism: Market-based variable pricing with typically 1-1.5 months inventory and 7-10 day lag in passing raw material costs

Management: Mr. Om Prakash Lohia (Chairman and MD), Mr. Vishal Lohia (Executive Director), Mr. Umesh Kumar Agrawal (CCFO), Mr. Ashok Yadav (Company Secretary)

https://indoramaindia.com/pdf/IndoRama-Earnings-Transcript-261026.pdf