1. At a Glance – Polyester Films, Losses & Hope (₹945 Cr Market Cap Edition)
Ester Industries today feels like that student who knows the syllabus, has bought all the guidebooks, but still manages to mess up the exam. Market cap of about ₹945 crore, stock price hovering near ₹96, down ~37% over one year, and returns that look like they went through a plastic shredder.
Despite ₹1,351 crore TTM revenue, the company is still reporting losses, with TTM PAT at -₹33.4 crore, ROE at a sleepy 1.78%, and interest coverage at an uncomfortable 0.58x. Debt? A chunky ₹738 crore. EV/EBITDA at 14.8x — not exactly cheap for a company bleeding red ink.
But wait — Ester is not just about today’s mess. It is also about a ₹1,600 crore chemical recycling JV, Nike as an anchor customer, patented technology, specialty polymers, rPET dreams, and a management that keeps saying “FY27 is where life begins”.
So is this a turnaround story… or just another polymer-coated promise?
Let’s dissect it layer by layer, like BOPET film itself.
2. Introduction – From Polyester Poster Boy to Mid-Cycle Migraine
Ester Industries was incorporated in 1985, which means it has survived multiple commodity cycles, oil shocks, Chinese dumping, global recessions, and probably a few boardroom fights over tea quality.
Historically, Ester built its reputation in polyester films, supplying BOPET films used in food packaging, FMCG labels, industrial packaging, and security applications. Over time, it tried to move up the value chain — coating films, metallised films, holographic films, specialty polymers, and now chemical recycling.
Sounds good on paper.
But reality has been harsh. The last few years saw:
- Weak global packaging demand
- Oversupply in BOPET films
- Margin compression
- High fixed costs
- Rising finance costs
The result? Losses despite decent topline, and ROCE collapsing from 20%+ levels a decade ago to 6.45% today.
Yet, Ester keeps betting big — specialty polymers, rPET, and the Loop Industries JV. The question investors must ask is simple:
Is Ester early… or just wrong-timed?
3. Business Model –
WTF Do They Even Do?
Let’s simplify Ester’s business like you’re explaining it to a friend who thinks “polyester” is only for cheap shirts.
A) Polyester Films (87% of FY25 Revenue)
This is the OG business.
- Installed capacity: ~108 KTPA
- FY25 volume: ~76,580 MT
- Capacity utilisation: ~72%
- SKUs: 300+
Products include:
- Plain BOPET films
- Metallised films
- Coated / barrier films
- Holographic films
Applications range from chips packets to shampoo sachets to industrial insulation.
Value-added products now form ~23% of the mix, which is good… but still not enough to fully escape commodity pricing pressure.
B) Speciality Polymers (13% of FY25 Revenue)
This is where Ester tries to sound smart in investor presentations.
- Customised polyesters & co-polymers
- PBT polymers
- rPET offerings
- Applications in electronics, textiles, carpets, and consumer goods
Volumes are still small (~4,651 MT in FY25), but margins are structurally better than films.
They have:
- 36 patents filed
- 17 patents granted globally
Patents are great. Monetisation is better. Ester is still in the “convince the market” phase.
C) rPET & Recycling – The Big Future Bet
Currently:
- rPET capacity: ~8 KTPA
- Proposed expansion: ~20 KTPA (Hyderabad, commissioning expected Aug 2025)
And then comes the big daddy move…
4. Financials Overview – Quarterly Results Reality Check
Quarterly Performance Table (₹ Crore)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 339 | 346 | 354 | -2.0% | -4.2% |
| EBITDA | 16 | 60 | 14 | -73% | +14% |
| PAT | -12.4 | 25 | -16 | -150% | +22% |
| EPS (₹) | -1.27 | 2.64 | -1.62 | -148% | +22% |
