Filatex India Ltd, an Integrated polyester filament yarn manufacturer, reported a 20.6% year-on-year (YoY) increase in standalone net profit to Rs. 49.14 crore (US $5.14 million) for the quarter ended 30th June (Q1 FY ’27), compared to Rs. 40.74 crore (US $4.26 million) in the corresponding quarter last year.
Revenue from operations rose 9.1% YoY to Rs. 1,145.3 crore (US $119.83 million) from Rs. 1,049.4 crore (US $109.80 million). On a sequential basis, revenue increased 16.2% from Rs. 985.49 crore (US $103.11 million) in Q4 FY ’26.
EBITDA remained largely flat at Rs. 77.92 crore (US $8.15 million) against Rs. 77.76 crore (US $8.14 million) a year ago, while EBITDA margin declined to 6.8% from 7.4% in Q1 FY ’26 due to margin pressures. Sequentially, EBITDA fell 9.7% from Rs. 86.24 crore (US $9.02 million) in the previous quarter.
Production during the quarter stood at 84,076 metric tonnes (MT), down 11.5% YoY, while sales volumes declined 7.5% YoY to 89,972 MT.
During the quarter, the company continued execution of its Rs. 300 crore (US $31.39 million) textile-to-textile recycling project with a capacity of 26,750 tonnes per annum (TPA). The project commissioning has been revised from September to October due to heavy rainfall and temporary labour shortages.
Filatex also said its Rs. 235 crore (US $24.59 million) brownfield polyester filament yarn (PFY) capacity expansion, which will add around 55,000 TPA across partially oriented yarn (POY), fully drawn yarn (FDY) and draw textured yarn (DTY), remains on track for commissioning by September.
The company is also progressing with its renewable energy programme, targeting an increase in renewable power usage from about 26% to 55% through hybrid wind-solar and solar projects by November.
On the business front, Filatex signed memorandums of understanding (MoUs) with American & Efird Global LLC and Decathlon for trials of its recycled polyester yarn in thread manufacturing and other applications. The company added that approvals from several other global brands are at advanced stages.
Madhu Sudhan Bhageria, Chairman C Managing Director at Filatex noted that geopolitical tensions in West Asia during March-May led to higher crude oil-linked raw material prices, increased freight and insurance costs, and lower industry operating rates.
However, market conditions improved from June as crude prices stabilised and supply chain disruptions eased.
He added that the temporary removal of customs duties on purified terephthalic acid (PTA) and monoethylene glycol (MEG) between April and mid-July provided short-term relief on raw material costs.
He further noted that planned domestic PTA capacity additions are expected to reduce India’s import dependence over the long term. Progress on the India-European Union Free Trade Agreement (FTA) and lower US tariffs on Indian textile exports are expected to support the long-term competitiveness of the country’s textile sector.
