1. At a Glance – Blink and You’ll Miss the Volatility
Indo Rama Synthetics (India) Ltd (IRSL) is that classic textile stock which looks cheap, feels cheap, and sometimes behaves cheap. Market cap sits around ₹1,070 crore, while the stock has casually fallen ~41% in just three months, reminding everyone that cyclicals don’t care about your long-term SIP emotions.
Latest Q3 FY26 numbers show revenue of ₹1,182 crore and PAT of ₹8.78 crore, a sequential slowdown versus the previous quarter’s fireworks. Debt remains chunky at ₹1,087 crore, with Debt/Equity of ~2.44, which means lenders still get invited to every boardroom discussion.
The stock trades at a single-digit P/E (~7.6x) versus an industry median closer to high-teens. Sounds tempting? Sure. But ROE at ~0.66% and ROCE at ~9.94% politely whisper: “Beta, returns abhi struggle mode mein hain.”
This is not a story of glamour. This is a story of survival, leverage, and whether polyester margins finally decide to behave. Curious? You should be.
2. Introduction – Polyester, Pain, and Periodic Hope
Indo Rama Synthetics has been around since 1989, which means it has survived multiple textile cycles, oil shocks, and investor heartbreaks. The company operates in polyester yarns and fibres — an industry where raw material prices, power costs, and global demand decide your mood every quarter.
For years, IRSL struggled with losses, shutdowns, and margin compression driven by high power and coal costs. FY23 and FY24 were especially brutal, with negative profits and depressed ROE. Then suddenly, FY25 and TTM numbers show a revival — PAT of ₹137 crore (TTM) and sales of ₹4,907 crore.
But before you declare victory, look closer. Quarterly profits are still inconsistent, interest costs remain heavy, and management churn (CEO resignation in April 2024) doesn’t scream stability.
So the real question isn’t “Is
Indo Rama cheap?”
The real question is: Is Indo Rama finally out of the ICU, or just temporarily off oxygen support?
3. Business Model – WTF Do They Even Do?
At its core, Indo Rama is a polyester workhorse. No fancy branding. No influencer-friendly products. Just large-scale manufacturing.
What they sell:
- Polyester Staple Fibre (PSF)
- POY, DTY, FDY yarns
- Polyester Chips
- Captive power generation (71.08 MW) to keep electricity bills from murdering margins
Where it goes:
- Apparel & sportswear
- Home textiles
- Hygiene & non-wovens
- Automotive textiles
The company operates a massive Butibori (Maharashtra) facility with ~610,000 TPA total capacity, making it a serious volume player. FY23 production volumes show under-utilisation in multiple segments — a polite way of saying “plants were bored.”
IRSL’s strategy is simple:
Run plants at higher utilisation, add value-added products, and pray that crude prices behave.
Do you trust this prayer? That’s the investing dilemma.
4. Financials Overview – Numbers Without Emotion
Quarterly Performance Table (₹ Crore)
| Metric | Latest Qtr (Dec’25) | YoY Qtr (Dec’24) | Prev Qtr (Sep’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 1,182.05 | 1,165.63 | 1,220.64 | 1.41% | -3.16% |
| EBITDA | 50.45 | 63.25 | 68.39 | -20.2% | -26.2% |
| PAT | 8.78 | 13.59 | 24.55 | -35.4% | -64.2% |
| EPS (₹) | 0.34 | 0.52 | 0.94 | -34.6% | -63.8% |
EPS Annualisation (Quarterly Rule Applied)
Q1 FY26 EPS = 2.02
Q2 FY26 EPS = 0.94
Q3 FY26 EPS =
