1. At a Glance
Welcome toEster Industries Ltd (EIL), the polyester polymath that started in 1985 and now finds itself at ₹111 per share—roughly the price of two movie tickets and a samosa. The company’smarket cap stands at ₹1,082 crore, with astock P/E of 282that screams, “I’m not cheap, I’m just hopeful.”
Ester operates in the polyester films and speciality polymers space, with a side hustle in recycling (rPET). But the last quarter was more of arecycle of losses:Q2 FY26 revenue ₹357 crore, EBITDA ₹17 crore, and a loss of ₹16 crore. Meanwhile, competitors like EPL Ltd and AGI Greenpac are out there partying with double-digit ROCEs while Ester is quietly polishing its patent collection.
The company’sROE of 1.78% and ROCE of 6.45%could make even a savings account blush. Withpromoters holding 62.7%, no pledges, and CRISIL keeping a watchful downgrade eye, Ester seems like that old class topper who started a “sustainability startup” before it was cool—but forgot to stay profitable.
Still, there’s drama brewing. AJV with Loop Industries(NASDAQ-listed) for a ₹1,600 crore Infinite Loop™ recycling plant is cooking up, and evenNike has signed an offtake deal. Polyester dreams are alive, but so are interest costs of ₹17 crore per quarter.
2. Introduction
Ester Industries is that one engineering student from your batch—did everything right, built cool projects, cracked patents, but somehow never made money. Founded in 1985, it was born in an era when “plastic was fantastic.” Fast forward to 2025, and the company is juggling polyester, rPET, and polymers while trying to convince the world it’s the Tesla of recycling.
The company’s portfolio is wide enough to make even FMCG conglomerates jealous—films for food packaging, special polymers for carpets, electronics, and rPET for sustainability show-offs.But the competition is fierce:Jindal Poly, Polyplex, and Uflexare the pack alphas. Ester’s current market share in value-added films is about23%, and it exports to50+ countries.
While the business looks diverse, the profits seem to have gone on a long vacation. Despite a steady sales CAGR of~5% over three years, profits have tanked by54%, and the last few quarters look like a see-saw of hope and heartbreak.
But then came the twist—literally.Ester Loop Infinite Technologies Pvt. Ltd. (ELITe), a JV with Loop Industries, aims to recycle polyester chemically and supply to big brands like Nike. Think of it as the redemption arc in this Bollywood corporate biopic.
Still, can this ₹1,082 crore smallcap handle a ₹1,600 crore plant? Can Nike’s offtake actually turn profits? Or will Ester remain the “polyester prince” of potential? Buckle up, we’re going full forensic on this plastic dream.
3. Business Model – WTF Do They Even Do?
Let’s break it down: Ester Industries makespolyester films,speciality polymers, andrPET(recycled polyethylene terephthalate). In simple terms—stuff that goes into your food packaging, water bottles, shampoo sachets, and even electronic casings.
a) Polyester Films:This is Ester’s bread and butter—or should we say “film and foil.” With108 KTPA capacityacross Sitarganj and Khatima, this segment contributes~87% of revenue. Their product mix includes holographic films, barrier films, coated films—basically, if it shines, it’s theirs. Utilization? About72%, which means the machines are working harder than the P&L.
b) Speciality Polymers:This is the “smart kid” segment contributing13% of revenue. Think customised polymers for carpets, electronics, and packaging. The company has36 patents filedand17 granted, because why stop at products when you can have paperwork too?
c) rPET:This is where the green revolution meets the balance sheet. The current rPET capacity is8 KTPA, with20 KTPA more coming in Hyderabad by Aug 2025.rPET is recycled polyester—basically, giving used plastic a rebirth and a marketing halo.
Ester’s clients are no less than an FMCG hall of fame—ITC, Godrej, Marico, Dabur, Amcor, Avery Dennison, Sabic. If you’ve ever opened a packet of chips, there’s a good chance you’ve already interacted with Ester.
4. Financials Overview
| Metric | Latest Qtr (Q2 FY26) | YoY Qtr (Q2 FY25) | Prev Qtr (Q1 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | ₹357 Cr | ₹334 Cr | ₹338 Cr | +6.9% | +5.6% |
| EBITDA | ₹17 Cr | ₹40 Cr | ₹20 Cr | -57.5% | -15% |
| PAT | ₹-16 Cr | ₹3 Cr | ₹-7 Cr | -623% | -128% |
| EPS (₹) | -1.62 | 0.32 | -0.73 | — | — |
The company went from profit to loss faster than you can say “operating margin.” TheOPM crashed to 4%, andPAT margin turned negative. YoY revenue growth is positive, but profitability took a nosedive. Interest of ₹17 crore per quarter is eating into profits like termites on plywood.
If EPS is negative,P/E becomes ‘Not meaningful,’but the stock screener still flaunts a P/E of282, proving numbers can have a sense of humour.
5. Valuation Discussion – Fair Value Range (Educational Only)
Let’s run the math with a sober face.
- Annualised EPS:₹0.50 × 4 = ₹2.0
- Industry P/E:21.8
- Fair Value Range by P/E:₹44 – ₹65
Next,EV/EBITDA method:EV = ₹1,706 Cr, EBITDA (TTM) = ₹150 Cr → EV/EBITDA = 11.4×Assuming a fair range of 8×–10×, theEV should be ₹1,200–₹1,500 Cr, implyingEquity Valueof ₹576–₹876 Cr →Per Share Range ₹60–₹90.
DCF? That’s like forecasting your crush’s response—risky, but here goes.Even with 10% WACC and 5% growth, the DCF sits around ₹70–₹95.
✅Educational Fair Value Range: ₹60 – ₹90 per shareDisclaimer: This is for educational purposes only and not investment advice.
6. What’s Cooking – News, Triggers, Drama
Grab your popcorn because Ester’s press room has been on fire.
- Nov 2025:Q2 FY26 results—loss of ₹16 crore, revenue ₹357 crore. But the headline wasn’t the loss; it wasNike signing an offtake dealfor Loop’s “Twist Resin.” So now your sneakers might literally contain recycled Ester.
- Sep 2025:Ester-Loop JV (ELITe) acquired90 acres of land in Gujaratfor a ₹1,600 crore Infinite Loop™ plant. Capacity? 70,000 tonnes of recycled DMT and 23,000 tonnes of recycled MEG.
- Aug 2025:Commercial launch expected byend-2027.
- Jul 2024:CRISIL downgraded their credit rating (ouch).
- Sep 2024:ESOP 2024 and preferential issue approved. Translation: “We’ll issue more shares, but please don’t panic.”
- Jan 2025:CMO resigned;Nov 2024:CHRO resigned—clearly, HR was
