Indo Rama Synthetics (India) Ltd – Investor Presentation Summary

Key Operational Highlights

  • Manufacturing utilization improved to 68% in FY26 from 58% in FY25, with further scope for improvement
  • Commissioned 2.28 Lakh TPA Bottle-Grade PET Resin production in June 2026
  • Added 39 texturising machines enhancing Draw Textured Yarn (DTY) capacity to 1.75 lakh TPA
  • Polyester Chips capacity debottlenecked from 1,743 TPD to 1,920 TPD (6.72 Lakh TPA) in February 2026

Key drivers of operational performance:

Improved product contribution and mix supported by PET resin and value-added texturised yarn products, operational discipline, and efficiency measures

Financial Highlights

Q2 FY27 Performance:

  • Revenue: ₹1,340.6 Cr
  • EBITDA: ₹117.7 Cr
  • PAT: ₹74.1 Cr
  • EPS: ₹2.84
  • EBITDA Margin: 8.8%
  • PAT Margin: 5.5%

H1 FY27 Performance:

  • Revenue: ₹2,277.3 Cr
  • EBITDA: ₹225.7 Cr
  • PAT: ₹137.8 Cr
  • EPS: ₹5.28
  • EBITDA Margin: 9.9%
  • PAT Margin: 6.0%

YoY comparison (Q2 FY27 vs Q2 FY26):

  • Total Income: +10.0% to ₹1,344.0 Cr from ₹1,222.4 Cr
  • EBITDA: +46.4% to ₹117.7 Cr from ₹80.4 Cr
  • PAT: +201.8% to ₹74.1 Cr from ₹24.6 Cr

Drivers of financial performance:

Higher volumes, better margins, improved product mix, supportive industry environment with domestic MMF demand growth

Key Risks:

Raw material price fluctuations, regulatory changes, geopolitical disruptions

Balance Sheet Snapshot

H1 FY27 Position:

  • Net Debt: ₹852 Cr (reduced 23.5% from FY26 level of ₹1,113 Cr)
  • Debt to Equity Ratio: 1.31x (improved from 2.18x in FY26)
  • Total Equity: ₹657.0 Cr
  • Reserves: Included in Other Equity of ₹395.9 Cr
  • Current Assets: ₹1,566.8 Cr
  • Current Liabilities: ₹2,073.3 Cr

Financial Health Insights:

Strong cash flow generation with operating cash flow of ₹329 Cr in H1 FY27 (up 259% from H1 FY26), improved liquidity

Capex & Cash Flow Health

Capital Expenditure:

  • ₹628 Cr total Capex in FY23-FY24
  • ~₹200 Cr expansion plan approved for specialty filament and fibre production

Cash Flow H1 FY27:

  • Operating Cash Flow: ₹329 Cr
  • Free Cash Flow: Not Specified
  • Net Debt Movement: Reduced by ₹261 Cr from FY26

Investment Rationale:

Focus on specialty filament and fibre production expansion, technology upgrades, capacity enhancement

Strategic & R&D Initiatives

Investments in Innovation:

Expansion into specialty filament and fibre production with commercial production target over next 12-18 months

Expected impact on growth:

Not Specified

Strategic Rationale:

Expanding into high-growth specialty products, reducing operational costs through efficiency measures

Industry Trends & Business Environment

Macro/Industry Trends:

  • Domestic MMF demand growth
  • Easing of QCOs on PTA/MEG
  • Minimum import prices on selected fabrics
  • Anti-dumping duty on PET chips from China
  • India-UK CETA effective July 2026 enabling duty-free access for ~99% of Indian exports to UK
  • Proposed India-EU FTA and favorable trade deals with USA under negotiation
  • Domestic cotton production decline from 352.48 to 290.91 lakh bales (170 kg)

Impact on Company:

Improved raw material availability, enhanced sourcing flexibility, potential reduction in import-related costs, better export market access

Management Commentary & Growth Outlook

Strategic Outlook:

With expanded capacities operational, improving market conditions and stronger product mix, Indo Rama has delivered sustained improvement in profitability and is well positioned for next phase of growth

FY Guidance:

Not Specified

Market Share Targets:

Not Specified

Risks and Opportunities:

Supportive industry environment, continued focus on operational discipline and efficiency measures

ESG & Sustainability

Transitioned from captive coal-based energy toward national grid connectivity from June 2020, supporting energy efficiency and decarbonisation