Key Financial Performance
Standalone Performance (Silvassa Plant):
- Revenue from operations: ₹813.13 Cr (Q1 FY27) vs ₹752.82 Cr (Q4 FY26) - sequential growth 8.01%; vs ₹749.88 Cr (Q1 FY26) - YoY growth 8.43%
- EBITDA: ₹94.93 Cr vs ₹82.48 Cr (Q4 FY26) - sequential growth 15.10%; vs ₹70.05 Cr (Q1 FY26) - YoY growth 35.52%
- EBITDA margin: 11.67% vs 10.96% (Q4 FY26) - 72 bps expansion; vs 9.34% (Q1 FY26) - 233 bps expansion
- Profit After Tax: ₹64.95 Cr vs ₹55.99 Cr (Q4 FY26) - sequential growth 16%; vs ₹47.19 Cr (Q1 FY26) - YoY growth 37.64%
- PAT margin: 7.99%
- Basic EPS (not annualized): ₹7.7
Consolidated Performance (Including Punjab Facility):
- Revenue from operations: ₹1,334.74 Cr vs ₹1,169.18 Cr (Q4 FY26) - sequential growth 14.16%; vs ₹745.34 Cr (Q1 FY26) - YoY growth 79.08%
- EBITDA: ₹108.08 Cr vs ₹94.43 Cr (Q4 FY26) - sequential growth 14.46%; vs ₹69.56 Cr (Q1 FY26) - YoY growth 55.38%
- EBITDA margin: 8.10% vs 8.08% (Q4 FY26) - broadly stable; vs 9.33% (Q1 FY26)
- Profit After Tax: ₹23.82 Cr vs ₹21.57 Cr (Q4 FY26) - sequential growth 10.4%; vs ₹40.43 Cr (Q1 FY26)
- PAT margin: 1.78%
- Basic EPS (not annualized): ₹2.82
Significant Cost Increases Due to Punjab Commissioning:
- Depreciation: Increased from ₹11.7 Cr (Q1 FY26) to ₹34.7 Cr (Q1 FY27)
- Finance costs: Increased from ₹4.62 Cr (Q1 FY26) to ₹38.6 Cr (Q1 FY27)
Operational Highlights
Punjab Facility:
- Polymerization capacity: 700 metric tons per day
- Q1 FY27 capacity utilization: 80%
- Target utilization: 85-90% in Q2 FY27; 95-96% in subsequent quarters
- Phase 2 expansion to 900 tons per day on track for Q1 FY28 commissioning
- Targeting EBITDA per ton of ~₹30,000 for next year
Silvassa Facility:
- Technical textiles capacity expansion completed: from 9,000 MTPA to 18,000 MTPA
- Commercial production expected to commence shortly
- Q1 FY27 technical textiles revenue: ~₹33 Cr
- Q1 FY27 technical textiles utilization: 94%
- Expected additional production from expansion: 7,500 tons over previous capacity
Sales Volume:
- Consolidated yarn sales: 1 lakh metric tons
- Silvassa facility: 54,000 metric tons across all three yarn verticals
- Punjab facility: 46,000 metric tons
Raw Material Context:
- Geopolitical tensions in West Asia disrupted PTA and MEG feedstock markets
- Government waived 11% customs duty on raw cotton imports effective June 1, 2026
- Raw material inventory: 8-10 days holding at quarter end
- Polyester inventory: Normal holding 10-12 days; currently 12-13 days
- Cotton inventory: Normal holding 7 days in finished inventory
Strategic Updates and Guidance
FY27 Outlook:
- Maintained EBITDA guidance: ₹520-540 Cr
- Focus on operational efficiency, margin improvement, and capacity utilization
- Phased commissioning of 32 MW hybrid wind-solar captive power arrangement expected to reduce power costs
Expansion Projects:
- MP Greenfield cotton plant: Planned capex of ₹400 Cr for 72,500 spindles
- Expected incremental revenue: ₹350-375 Cr
- Expected asset turnover: 0.8-0.85
Raw Material Strategy:
- Punjab facility: 100% raw material from IOCL Panipat plant
- Silvassa facility: 50-60% imported PTA; 40% domestic PTA (contracted)
- In discussions with GAIL and IOCL Paradip for future domestic PTA supply
Management Commentary
Chairman Paresh Dattani highlighted:
- Quarter defined by raw material price volatility rather than demand
- Both facilities operated without interruption despite supply chain disruptions
- Demand began normalizing from June after purchase deferrals in April-May
- Structural drivers remain intact: shift to man-made fibers, supportive trade agreements, global sourcing diversification toward India
- Focus on operational excellence, prudent capital allocation, and product diversification