Mumbai: Filatex India Limited’s Q4 FY26 net profit declined 27.27% to ₹40.25 crore from ₹41.38 crore in the same period last year. Its revenue for the quarter also declined 6.12% from ₹1,080.2 crore in Q4FY25 to ₹985.49 crore this time.
The Q4 Speedbump: Supply Chains & Crude Volatility
The polyester maker has been facing challenges with a disruption in raw material supplies along with raw material price fluctuations, mostly attributable to the ongoing war in the Middle East. This has led to sales volumes falling 6.96% YoY, as the company has prioritized inventory planning over low-margin spot sales during high volatility periods. Despite the slow growth, the company’s EBITDA margins have actually improved to 8.75% in Q4FY26 from 7.01% in the same period last year, as the company has become better at operational cost control.
Shift to recycled polyester
To address the challenges faced from crude-dependent raw materials, Filatex is investing ₹300 crore in ‘ECOSIS’, India’s first commercial-scale textile-to-textile recycling platform. Here, old garments will be turned back into virgin-grade polyester. The greenfield project is expected to be launched by September 2026, with a capacity of 26,750 tonnes per annum. It is expected to add ₹75-80 crore in annual EBITDA once operational.
“I am pleased to share that the Company delivered a resilient performance during Q4FY26 and FY26, with revenue of ₹985 crore / ₹4161 crore, supported by stable volumes, disciplined execution, improving product mix and continued focus on higher-value offerings. Despite a dynamic operating environment, our margins and profitability remained resilient, reflecting the strength of our integrated operating model and our ability to respond proactively across cycles.
During March 2026, the polyester industry witnessed temporary volatility due to geopolitical tension in West Asia that elevated crude oil-linked input costs across global supply chains. . These are industry-wide and transitory in nature, and Filatex remains proactive through prudent inventory planning, diversified sourcing and disciplined customer engagement to maintain supply continuity.
Looking ahead, improving market access through the India–EU FTA, lower US tariffs and Europe’s sustainability-led sourcing shift continue to create strong tailwinds for the Indian textile sector. Our capex projects remain on track as per committed timelines, while additional MoUs for Ecosis provide early commercial validation of our circular recycling platform across applications. With our scale, integrated manufacturing capabilities and early leadership in textile-to-textile recycling, we believe Filatex is well positioned for sustainable long-term growth.” Mr. Madhu Sudhan Bhageria, Chairman and Managing Director, Filatex India, said in a press release.
