FILATEXNSEQ2 FY2025-26November 06, 2025

Filatex India Limited

7,470words
87turns
10analyst exchanges
5executives
Management on call
Madhu Sudhan Bhageria
CHAIRMAN AND
Ashok Chauhan
CHIEF VISIONARY OFFICER – FILATEX INDIA LIMITED
Nitin Agarwal
CHIEF FINANCIAL OFFICER – FILATEX INDIA LIMITED
Vedansh Bhageria
VICE PRESIDENT,
Bhavin Dedhia
SHARE INDIA SECURITIES
Key numbers — 40 extracted
rs,
important quarter for us. The company continued to make steady progress across all key parameters, reflecting both operational consistency and a clear focus on improving profitability. On a Q-to-Q
INR1,076 crore
on improving profitability. On a Q-to-Q basis, revenue growth -- on Q-on-Q basis, revenue grew to INR1,076 crores from INR1,049 crores. Sales volume also moved up from 97263 metric tonnes to 101,391 metric to
INR1,049 crore
ity. On a Q-to-Q basis, revenue growth -- on Q-on-Q basis, revenue grew to INR1,076 crores from INR1,049 crores. Sales volume also moved up from 97263 metric tonnes to 101,391 metric tonnes, indicating health
14.36%
metric tonnes, indicating healthy demand and improved capacity utilization. Our EBITDA rose by 14.36%, reaching INR88.93 crores compared to INR77.76 crores in the previous quarter. PAT followed a sim
INR88.93 crore
indicating healthy demand and improved capacity utilization. Our EBITDA rose by 14.36%, reaching INR88.93 crores compared to INR77.76 crores in the previous quarter. PAT followed a similar trend, increased by
INR77.76 crore
nd improved capacity utilization. Our EBITDA rose by 14.36%, reaching INR88.93 crores compared to INR77.76 crores in the previous quarter. PAT followed a similar trend, increased by 16.8% to INR47.58 crores, up
16.8%
s compared to INR77.76 crores in the previous quarter. PAT followed a similar trend, increased by 16.8% to INR47.58 crores, up from INR40.74 crores in Q1. This consistent demand -- this consistent quar
INR47.58 crore
d to INR77.76 crores in the previous quarter. PAT followed a similar trend, increased by 16.8% to INR47.58 crores, up from INR40.74 crores in Q1. This consistent demand -- this consistent quarter-on-quarter pro
INR40.74 crore
he previous quarter. PAT followed a similar trend, increased by 16.8% to INR47.58 crores, up from INR40.74 crores in Q1. This consistent demand -- this consistent quarter-on-quarter progress underscores the b
INR2,125 crore
we are pleased with a steady improvement across all key metrics. Revenue for H1 '25-'26 stood at INR2,125 crores compared to INR2,103 crores in H1 '24-'25, marking a stable performance despite a challenging ex
INR2,103 crore
y improvement across all key metrics. Revenue for H1 '25-'26 stood at INR2,125 crores compared to INR2,103 crores in H1 '24-'25, marking a stable performance despite a challenging external environment. Sales
INR166.7 crore
truly encouraging is the improvement in profitability. EBITDA for the first half rose sharply to INR166.7 crores from INR106.6 crores, while PAT nearly doubled to INR88.32
Guidance — 20 items
Bhavin Dedhia
opening
“Additional yarn capacity project, INR235 crores, progressing well with major machinery orders placed, completion as per target by September 2026.”
Bhavin Dedhia
opening
“Recycling project, civil construction is underway and major equipment orders have been placed.”
Bhavin Dedhia
opening
“Steam infrastructure project, [inaudible 0:06:33] crores already in the implementation phase, turbine orders placed and pipeline work is progressing well.”
Bhavin Dedhia
opening
“We remain optimistic about the medium-term outlook for the polyester industry and availability of key input materials.”
Surya Narayan Nayak
qa
“So when are we expecting the full volume tie-up will be -- for input tie-ups will be in place?”
Surya Narayan Nayak
qa
“And sir, is there any chance that we would be thinking of setting up more units after the testing success maybe in the second quarter of -- sorry, third quarter of the next year.”
Surya Narayan Nayak
qa
“Madhu Sudhan Bhageria: I will not call it a full stop, yes, but there will be no major expansion.”
Surya Narayan Nayak
qa
“So is there any chance of influx of more -- any dates in the second half because we will be -- maybe we'll be buying -- actually paying the amount to these vendors.”
Surya Narayan Nayak
qa
“Madhu Sudhan Bhageria: In Filatex, there will be no influx of the second half.”
Surya Narayan Nayak
qa
“2%, and with the addition of the productivity programs that is currently underway, which will be commissioned in the second half or, let's say, maybe second -- or close to second half.”
Risks & concerns — 4 flagged
So hence, the margins are a little under pressure.
— Niraj Mansingka
I mean whatever we could get these -- to get the workers today is also getting a challenge day-by-day.
— Niraj Mansingka
And do you see -- okay, I know it's difficult to predict, but do you see that this is the last one or they can find more areas of import?
— Niraj Mansingka
And what would be the impact of anti-dumping duty on our EBITDA in percentage and absolute terms if the ADD is imposed by the Ministry of Finance?
— Tushar Talwar
Q&A — 10 exchanges
Q
So just a couple of questions. Just to understand that the average selling price is remaining in the range of INR106 to INR109 for last year and current year to date, but down slightly around 1% to 2%. So just to understand whether the gains on the GP side, gross margin side is due to the lower -- I mean, relief from the PTA or MEG side or what actually? That is first question. And regarding the packing lines, where -- I just couldn't understand where we are because it was scheduled to be operational from the June '26. So has it got preponed? Madhu Sudhan Bhageria: See, regarding the pricing,
Surya Narayan Nayak
So whatever the plants, be it the packing lines or let's say, RE power and the... Madhu Sudhan Bhageria: All on course. Only the RE power might get a little delayed because the company with whom we had the tie-up, they are facing some issues in the -- from the government getting the connectivity and all those things. We are exploring from others also if we can get power from some other sources. So that would be postponed to second quarter, sir? Madhu Sudhan Bhageria: So that would get postponed to maybe something like July, August 2026. Second quarter, sir, right? Madhu Sudhan Bhageria: Yes, s
Q
So my first question was like how big is the first mover advantage, which you can gain since your plant will be operational in FY '26 as compared to '27 and '28 for other players? Madhu Sudhan Bhageria: Sorry, I mean, if can slow down. Echo is there. I think you are on a speaker phone or...
Bhavin Dedhia
Can you hear me now, sir? Madhu Sudhan Bhageria: No. There is a lot of echo. Okay. I will fall back in queue.
Q
Congrats on good set of numbers. I just wanted to understand how has been the raw material price movement for Q2 and also the first month of Q3? Has there been any increase? If you can just throw some light on that? And also, there is one thing that is eating up the profitability of the company, that is the exchange fluctuation. How does the company plan to mitigate that or hedge that? Madhu Sudhan Bhageria: So the raw material side, this quarter is quite stable and maybe it will go up slightly. Last quarter also, it was quite stable. I mean it was not a downward trend compared to Q1. The pric
Varun
Okay, sir. So for Q3 also, do you expect them to remain in the same level? Madhu Sudhan Bhageria: Sorry, can you repeat? For quarter 3 also, do you expect them to remain in the same level as the raw material prices? Madhu Sudhan Bhageria: Yes, yes, it will be at a similar level. It can slightly edge up 1% or 2%, nothing more. So it will remain at the similar levels. Nothing major is happening right now. I mean exchange fluctuation, sir. Madhu Sudhan Bhageria: We had hedged only a portion of our outstanding, which we were supposed to pay in this year, we had hedged it. But the rest of it, we di
Q
Congrats for the good numbers. A few questions. One, what -- you said about the anti-dumping on MEG. Can you elaborate on that? Madhu Sudhan Bhageria: So, there is an anti-dumping which has been recommended by DGTR. Although you might have seen there are a lot of advertisements in the paper by the MEG producer and from our association also regarding that the government should not put it because Finance Ministry has the discretion whether to put it or not put it. That's one thing. But even if it is put, then also see there's a lot of material available from U.S.A. U.S.A. doesn't have anti-dumpi
Niraj Mansingka
Okay. The second question is on the polyester recycling. In the past, you had said that the recycling realization is INR40, INR45 higher. So what would it imply -- what is it right now, recycling prices over the... Madhu Sudhan Bhageria: Still in that range, INR45, INR50 depending on that. It's still in that range. But then your EBITDA -- and you said you'll go INR80 crores, INR85 crores EBITDA. Madhu Sudhan Bhageria: That's on the yarn side. See, we are making only the chips. So we'll not be enjoying the 100% INR40, INR45. We'll have to pass it some to the yarn guy also. So our margins would
Q
Any sort of outlook or guidance you can share when it comes to volumes or revenue. Madhu Sudhan Bhageria: Sorry. Can you speak a little louder? Not able to hear you.
Rahil
How about now, better? Madhu Sudhan Bhageria: Yes. I was just asking if you can share any sort of outlook or guidance when it comes to your -- so EBITDA you've covered pretty much. But when it comes to volumes or revenue front for the foreseeable future, which is H2 and then in the next year when all the capacity is up and running as well. So if you can provide a certain direction where we head in terms of growth? Madhu Sudhan Bhageria: See volume-wise, I don't think much will change in H2, second half or H1 of the next year because we are not adding more capacity. And the utilization is prett
Q
Yes. So the recent GST reforms that has been made. So with that man-made fibers, the old rate was 18% down to 5% and yarn is 12% to 5%. So how do you see structurally it is changing the industry going forward? That is one question. And second thing is that, I'll come to the second question. Sir, this is the first question, please answer. Madhu Sudhan Bhageria: See, GST reform from 12% to 5% is for the yarns only. But as far as the consumer is concerned, they were always getting fabric at 5%, garments at 5%. Only change which for the consumer -- the last consumer is that garments above INR1,250
Surya Narayan Nayak
Okay. And sir, the second question is that we are having very good relationship with our suppliers. We are getting good -- in their stalwarts, so in the industry. So it is quite difficult to digest. But going forward, as we progress the PTA facilities of IOC -- GAIL and IOC will be coming up. So do you think that maybe overseas reliance on the PTA and the MEG side will come down and that will reduce the exchange volatility. And in our case, the line item that is constantly quite a disturbing element that will go down? Madhu Sudhan Bhageria: Yes, it will go down because PTA after these 2 plants
Q
So, sir, just wanted an outlook like in the previous call, you had mentioned that there was domestic demand weakness. And so how is domestic demand panning out currently? And I am aware that H2 margins were better. So since in H1, we have already achieved 7% EBITDA margin, approximately what can be your guidance for H2 FY '26 being the winter season coming ahead? Madhu Sudhan Bhageria: See H1, according to me, the EBITDA margins for the H1 is 7.84%. And I think we should do at least 8.5% to 9% in the H2.
Bhavin Dedhia
So full year will come around 8%, 8.1%. Madhu Sudhan Bhageria: Yes, full year should be above 8% for sure. And sir, how is the demand scenario in the domestic market? Madhu Sudhan Bhageria: Demand is quite good, quite good. It's a balance. I mean there's no problem in selling the goods until unless the government comes up with some different things. Otherwise, the market looks good, and I don't see anything going wrong. And in this season, like the demand is a little high in the winter season. Yes. And sir, any update on that minimum import price by the government for our HSN codes, like you m
Q
I just wanted to know one more thing. There was a proposal by the government to -- they had a boost, I think, BIS norms or some norms for import of the fabric, various HSN codes were there. And later on, the imports started happening from other HSN codes. So, what is the status right now in terms of the import of the fabric from outside China? Madhu Sudhan Bhageria: It's still happening from certain HSN codes, and it's quite a decent volume. We are trying to get MIP done on those HSN codes also. If that happens, that will give really good boost to the Indian market.
Niraj Mansingka
Okay. And do you see -- okay, I know it's difficult to predict, but do you see that this is the last one or they can find more areas of import? Madhu Sudhan Bhageria: I don't know. I mean we have tried to put -- given them a list of almost all the HSN code. Rather, we have shortened it, we have said you put it on the 4 digit rather than going on 8 digit. If you put on 4 digit, then almost everything is taken care of. That makes sense. Yes, yes. Okay. Got it. And color on the consumption growth in the Indian market, any color on that? Madhu Sudhan Bhageria: Consumption is happening downstream,
Q
Yes. Sir, again, one question is there. So with the influx of the capacities from the GAIL and IOC, so I believe there is currently some gap between the Chinese production prices and the Indian production side, so which is actually creating some sort of level playing field. So do you think that, that level playing field will be -- I mean, the gap in level playing field will be breached post operations of the GAIL and IOC? Madhu Sudhan Bhageria: See, right now, because of BIS, Chinese products, which we import or re-export are definitely cheaper than what we import from other countries who have
Surya Narayan Nayak
If you can give on the INR conversion price, what will be the Chinese price? And what is the Indian price at the moment, sir, for PTA only? Madhu Sudhan Bhageria: Right now, not calculated. Dollars, I know you can put the dollar rate and calculate. So dollar rate price of China is around $640 as compared to $675 of the BIS price, BIS countries like Taiwan, Korea, Thailand, Indonesia. So that's kind of -- these are landed India prices in dollars, and then you have to pay 5.5% duty on that and clearing charges. So we could be -- maybe you are expecting that this $30 to $35 gap may be reduced and
Q
Recently, the Director General of Trade Remedies has recommended imposition of anti- dumping duty on MEG. And we have been seeing a lot of advertisements in the newspapers from industry associations recommending that the Ministry of Finance not accept the proposal. While I will not go into whether it will be imposed or not, I wanted to understand two things, sir. What proportion of our raw materials by value is MEG? And what would be the impact of anti-dumping duty on our EBITDA in percentage and absolute terms if the ADD is imposed by the Ministry of Finance? Madhu Sudhan Bhageria: See, MEG a
Tushar Talwar
And sir, how much does that translate into EBITDA percentage? Do you -- is that possible to quantify? Madhu Sudhan Bhageria: It's around 0.5% to 1%.
Speaking time
Surya Narayan Nayak
33
Niraj Mansingka
18
Moderator
13
Bhavin Dedhia
9
Varun
6
Rahil
6
Tushar Talwar
2
Opening remarks
Bhavin Dedhia
Thank you. Good afternoon, everyone. On behalf of Share India Securities, I would like to welcome all participants for Q2 FY '26 Earnings Conference Call of Filatex India Limited. We are pleased to have with us management team represented by Mr. Madhu Sudhan Bhageria, Chairman and MD; Mr. Ashok Chauhan, Chief Visionary Officer; Mr. Nitin Agarwal, Chief Financial Officer; and Mr. Vedansh Bhageria, Vice President, Corporate Strategy. We will have opening remarks from Mr. Madhu Sudhan Bhageria to give an overview of the company's performance. This will be followed by Q&A. Thank you, and over to you, Madhuji. Madhu Sudhan Bhageria: Thank you. Good day, everyone, and a warm welcome to all attendees joining us for the second quarter FY '26 conference call. Joining me today are Mr. Ashok Chauhan, Nitin Agarwal and Vedansh Bhageria. I trust you have had a chance to go through our investor presentation, which has been uploaded on both our website and the Stock Exchanges. Let me now take you thr
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