Financial Performance Q1 FY27

Sumeet Industries Limited announced its unaudited financial results for Q1 FY27. The consolidated financial highlights show:

  • Total Income: ₹272.74 crore
  • EBITDA: ₹8.85 crore
  • EBITDA Margin: 3.24%
  • Net Profit: ₹1.14 crore

The company reported a 9.17% year-on-year growth in total income despite challenging operating conditions in the polyester industry.

Capital Raising Activity

The company successfully completed a ₹199.75 crore Rights Issue, receiving overwhelming response from shareholders. The net proceeds of ₹194.90 crore will be utilized for:

  • Strengthening working capital
  • Operationalisation of the Nakoda CP Plant
  • Repayment of borrowings
  • Development of a 6.5 MW captive solar power project

Expansion Projects

The acquired 140,000 TPA Bottle Grade PET Chips (CP) Plant at Nakoda is progressing as planned and is targeted to commence commercial operations during Q1 FY28. Once operational, the facility is expected to generate:

  • Approximately ₹1,500 crore of additional annual revenue
  • Approximately ₹70 crore of EBITDA

Management Commentary

Mr. Pratik R. Jaju, Managing Director, commented that the quarter saw unprecedented surge in raw material prices following geopolitical tensions in the Middle East, which temporarily impacted margins across the polyester value chain. The situation has begun to normalize with crude oil prices stabilizing and supply chains improving.

The Rights Issue has substantially strengthened the company's financial position and enables expansion of working capital, acceleration of the Nakoda CP Plant commissioning, investment in renewable energy, and debt reduction.

Financial Guidance

Based on current demand environment and strategic initiatives, the company expects:

  • More than 30% revenue growth during FY27
  • EBITDA margin of around 6% for full year FY27
  • Profit After Tax margin in the range of 3.5% to 4% for full year FY27

Corporate Background

Incorporated in 1988, Sumeet Industries is an integrated polyester manufacturer producing Pet Chips, POY, FDY, and Polyester Texturized Yarn. The company was taken over by Eagle Group, Successful Resolution Applicant, pursuant to NCLT order dated 16 July 2024.

The Board has approved Phase 1 of polyester yarn capacity expansion involving:

  • Addition of 15,000 tonnes per annum
  • Investment of ₹30 crore

The company holds 27% stake in HI-URJA TECHNO LLP, a Solar Power Generating Plant with 14 MW installed capacity as a Captive consumer.

Historical Financials

In FY26, the company recorded:

  • Revenue: ₹1,053.81 crore
  • EBITDA: ₹60.77 crore
  • Profit After Tax (Including Exceptional Item): ₹27.33 crore