Ester Industries Limited (NSE: ESTER) Q4 2025 Earnings Call dated May. 23, 2025
Corporate Participants:
Arvind Singhania — Chairman and Chief Executive Officer
Sourabh Agarwal — Chief Financial Officer
Analysts:
Amit Sharma — Analyst
Saket Kapoor — Analyst
Saransh Gupta — Analyst
Rahil Shah — Analyst
Deepak Malhotra — Analyst
Surendra B — Analyst
Unidentified Participant
Aditya Shah — Analyst
Sana — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q4 and FY ’25 Earnings Conference Call of Esther Industries.As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr Amit Sharma from Ad Factor’s PR Investor Relations team. Thank you, and over to you, sir Sir, sir please go-ahead.
Amit Sharma — Analyst
Good evening, everyone, and a very warm welcome to you all. Thank you everyone for participating in the earnings call. For the quarter and financial year ended 31st March 2025. Before we begin, please note that this conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions and expectations of the company as on the date of this call. The statements are not a guarantee of future performance and involve risks and uncertainties that are difficult to predict.On the call today, we have with us Mr Kinghania, Chairman and CEO; Mr Jah, Deputy CEO; Mr Pradeep Kwar, Executive Director, Corporate Affairs; and Mr Saurav Agarwal, CFO. The management will take us through the operational and financial performance for the quarter and financial year gone by, following which we will open the forum for Q&A. I now request Mr Arvind Singhania to take us through the company’s performance. Thank you, and over to you, sir.
Arvind Singhania — Chairman and Chief Executive Officer
Thank you, Amit, and thank you everyone for joining us today. I will briefly talk about the key business developments, post which Saurab will walk you through our financial performance. We are pleased to report a strong performance across both our business segments this year. Revenue from our Specialty Polymers business segment saw strong growth of 72%, while the Film segment recorded a healthy 15% increase. The specialty Polymers SBU contributed significantly to the overall increase in consolidated EBITDA and delivered a remarkable 164% rise in EBIT. Now let me tell briefly on the performance of each business segment.
Starting with the polyester Films business, we continue to witness sustained growth in-demand, which has positively impacted the demand-supply scenario, leading to improvement in margin profile and overall profitability. Additionally, a larger portion of high-margin value-added films contributed significantly to improved financial performance. Our transformation from commodity to specialty films player is progressing well. We expect to achieve improvement in profitability through a better product mix and improved operational efficiency going-forward. With the plastic waste management rules, PWMR mandating a minimum 10% recycled content in flexible packaging laminates with effect from 1st April 2025.
The demand for films is likely to get a boost with accelerated conversion from other substrates to polyester. To serve the growing demand emerging from PWMR, we are enhancing our RP capacity by putting up a production line of 20,000 tonnes per annum in Hyderabad, which is expected to be operational by over — by August 2025. Moving to wholly-owned subsidiary, Esther FilmTech Limited. EFTL generated revenue of INR352 crores in value terms and 27,071 metric tons in volume metric tons, an increase of 25% and 6% respectively over FY ’24. The EBITDA for Q4 FY ’25 was adversely impacted due to the foreign exch — foreign-exchange fluctuation of INR7.1 crores, the impact of the same for the full financial year being INR4 crores.
However, on a year-to-year — year-on-year basis, the overall performance has improved with better margin profile on account of improved demand-supply scenario. We anticipate that continuous growth in-demand, improving production efficiencies, higher operating leverage and a favorable product mix will help us achieve better profitability going-forward. Moving to Specialty Polymer segment. Specialty Polymers witnessed strong year-on-year growth with 72% rise in revenue and 164% jump-in EBIT. The growth was primarily owing to strong demand from our marquee products and innovative PBT.
For the quarter, our overall volume of sales excluding RP stood at 754 metric tons. On a yearly basis, volume excluding RP stood at 3,165 metric tons compared to 2,339 metric tons achieved in FY ’24, higher by 35% on year-on-year basis. In terms of our key products, MB-03 volume stood at 348 tonnes during Q4 FY ’25 as against 368 tons during Q4 FY ’24. Volume of sales of innovative PBT for Q4 FY ’25 stood at 374 metric tons as against 194 metric tons during Q4 FY ’24. Specialty polymers, as previously mentioned, are primarily produced for sales to overseas customers with a substantial share of its sales directed towards clients in the USA and China. The primary applications of these products are within the carpet and consumer electronics sectors.
From a margin and profitability standpoint, the business remains largely protected due to minimal competition and intellectual property safeguards associated with its key products. We are confident that the business will maintain its growth momentum in the coming years, supported by a promising product pipeline and human capital to pursue aggressive and focused R&D and marketing strategy for achieving growth in this segment. As far as RPET is concerned, revenue from RP during FY ’24 was only INR2 crores, corresponding to volume of 157 metric tons. During FY ’25, sales in volumetric terms increased to 1486 metric tons, that is 1,486 metric tons and in value terms from to INR16 crores, a notable increase. RPET manufacturer and sold by us is primarily used for rigid and flexible packaging applications. Esther manufacturers benchmark setting premium quality food grade RP.
This make Esther this makes Ester a preferred supplier of RP for many large FMCGs and brand owners. With regards to our 50-50 joint-venture with Group Industries Inc. We are pleased to report that the execution of our joint-venture plans is advancing according to established timelines. We are diligently pursuing various activities related to implementation of the project. In conclusion, we are confident about the long-term prospects of both our businesses. While the improving demand-supply dynamics and favorable policy environment in-fills business are creating strong tailwinds, our emphasis on product innovation, efficiency and sustainability is positioning us well for the future. We expect specialty Polymers to sustain growth momentum and deliver consistent performance in years to come.That concludes my opening remarks. I now hand over the floor to Saurabh to walk you through our financial performance. Over to you, Saurab.
Sourabh Agarwal — Chief Financial Officer
Thank you and good day, everyone. Thank you for joining us on our quarter-four financial year ’25 earnings call. Let me quickly walk you through our financial performance post which we can commence the Q&A session. I would like to start with the standalone financial performance. Total income for quarter-four FY ’25 stood at INR261 crore, up by 19% on year-on-year basis. EBITDA for the quarter was INR36 crores, translating into EBITDA margin of 14%, a significant improvement compared to EBITDA margin of 4% earned in-quarter four FY ’24. Profit-after-tax for the quarter stood at INR12 crore compared to a net loss of INR9 crore incurred during quarter-four FY ’24. For the full-year, the total income stood at INR1,085 crore, achieving a growth of 23% on year-on-year basis. EBITDA surged to INR134 crore from INR23 crore in FY ’24, a significant increase by 485%, driven by improvement in performance of both film and specialty business. EBITDA margin expanded from 3% to 12%.
Profit-after-tax stood at INR41 crore, a strong turnaround from a loss of INR43 crores in the previous year. Profit-after-tax margin stood at 4%. Coming to the subsidiary, the total income for the quarter was INR78 crore. EBITDA earned during quarter for FY ’25 stood at INR2 crores, which reflects a margin of 2%. EBITDA and profit would have been higher, but for an adverse foreign-exchange fluctuation of INR7 crores, on account of foreign currency loan available by the company. The exchange fluctuation is on account of reinstatement of foreign currency liability as on 31st March 2025. For the full-year, the subsidiaries income stood at INR352 crores as compared to INR281 crore during FY ’24, which is a 25% increase on a Y-o-Y basis. The company could earn EBITDA of INR31 crores as compared to a loss of INR19 crores during FY ’24, translating into an EBITDA margin of 9%.
Fintech recorded a lower loss of INR26 crores compared to a loss of INR78 crore incurred in FY ’24. On a consolidated basis, we delivered a strong performance for the quarter with total income at INR321 crore, reflecting a 15% year-on-year growth compared to INR280 crores in-quarter four FY ’21. EBITDA increased sharply to INR39 crores from INR9 crores, registering a growth of 300 and 300%, while EBITDA margin expanded from 3% to 12%. Profit-after-tax turned positive at INR2 crores as compared to a loss of INR24 crore in-quarter for FY ’24. For the full-year, our performance has been in-line with our expectations. We achieved a total income of INR1,298 crore, backed by strong revival across both the businesses. EBITDA surged to INR16164 crore, a remarkable increase from INR3 crores in FY ’24. This achievement is a reflection of the transformative progress we have made as an organization. EBITDA margin expanded significantly to 13%.
Profit-after-tax earned during the year amounted to INR14 crore compared to a loss of INR121 crore last year. This exceptional turnaround is driven by strategic clarity, relentless focus on increasing proportion of value-added products and ramping-up sales of specialty polymers. Both EI and EFTL have been absolutely — absolutely regular with repayment of term loans as per schedule. Basis the budgeted improvement in profitability, coupled with free-cash flow and bank balance in-hand, we are absolutely confident of adhering to the repayment schedule. On the working capital front, both companies have adequate limits to sustain budgeted enhanced operations. Liquidity of EI and EFTL as defined by current ratio stands at 1.71 and 1.68 respectively.
On a consolidated basis, net-debt was INR591 crore, which as a multiple of EBITDA stood at 3.61, a substantial improvement as compared to 31st March 2024. Financial year ’25 has been a year marked by strong revival and margin expansion across businesses as we return to profits. The implementation of strategic initiatives translated into solid revival, both in operational and financial terms. Our progress in recycling, sustainability and value-added offerings positions us well for long-term sustained growth. With a strong foundation in-place, we remain confident of a better FY ’26 and beyond. That concludes our opening remarks.We can now commence the Q&A session. Thank you.
Questions and Answers:
Operator
Thank you, sir. We will now begin with the question-and-answer session. Anyone who wishes to ask a question may press star N1 on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star N2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Saranj Gupta from Swan Investments. Please go-ahead thanks for your call, please stay on the line.The participant line has been disconnected. We’ll move to the next participant. That is Saket Kapoor from Kapoor Company. Please go-ahead.
Saket Kapoor
Yeah., am I audible, sir?
Arvind Singhania
Yes, yes.
Operator
Yes.
Saket Kapoor
Sir, thank you for a very detailed presentation, rather a revamped one and that not only covers all the aspects out and — but we have also chosen the right set of colors and the background to have a better presentation. So kudos to the team for improved set of not only the numbers, but also improved set of investor presentation. Hope we follow the modules going ahead. Sir, firstly, sir, when we look at — in the presentation, we have mentioned about our pet part under the specialty polymer segment. So if you could just explain to us what would this — its contribution going to be? How are the realizations? You did alluded to it in your opening remarks. [Foreign Speech]
Arvind Singhania
Yeah. Actually, the is more going to be focused on supplying the polyester film with RFET content with recycled content. So this will actually move to the film business slowly.
Saket Kapoor
Okay. So that will be an arms transaction where we’ll be booking the revenues on — firstly on the polymer side and then the same goes the value addition goes to the FLIM. That is how the sales will go pass-through to the P&L.
Sourabh Agarwal
So basically, is right now a part of the specialty Polymers business segment and we are going to move it from a reporting point-of-view to the film business segment from next year onwards. So from a legal entity structure point-of-view, there is no arms and transaction because it is a business unit of the company and the sales are made to third-party, which is outside the company.
Saket Kapoor
Okay. So now coming to the point, yeah, yeah, please. [Foreign Speech]
.
Arvind Singhania
The RP that we are getting commissioned in after FilmTech, if that is required to be sold to Industry, that will be a
Saket Kapoor
You sir. Sir, when we look at our consolidated number, that is the performance of our Telangana unit, the — it was affected because of a non-cash item which was mentioned about INR7 crore exchange fluctuation. Other than that, sir, what were the key factors on a Q-on-Q basis that led to lower profitability from the Southern unit, LimTech?
Sourabh Agarwal
Okay. So one of the main reasons was that there was a surge in imports from China and Thailand at predatory pricing at very, very unremunerative pricing. And that is the reason we had to — there was a correction in the pricing in the domestic market for us as well. But we are taking adequate steps to protect our interest because these prices are unremunerated, they are dumping prices, they are dumping therefore, we are now moving to protect our interest in the domestic market and we are moving the government to address the situation.
Saket Kapoor
So could you show for more light, how have the realization shaped over a quarterly period? Because even on a standalone basis, demand — there is a dip in the profitability. So if you could just give us how the per kg contribution moved from us — moved from December to March quarter and what are the current trends?
Sourabh Agarwal
Yeah. So in December quarter, the selling price of INR12 macron corona 12 macron commodity film was INR117 rupees. When talking of Fintech, which reduced INR210 Rupees, the value addition dropped from INR36 a kg to INR26 a KG because of the region which Mr Singhania just now mentioned.
Arvind Singhania
So there was a drop-in valuation of INR10, which is quite substantial. That is that is the main reason for the drop-in profitability.
Saket Kapoor
Okay. And what are the current trends?
Arvind Singhania
Current trend is slightly better at as we speak now, it is slightly better. Not back to December quarter numbers as yet.
Sourabh Agarwal
But we still have 1.5 months of the quarter is still left with us.
Saket Kapoor
Right. And also on the utilization levels part, sir, I think so our Southern unit have the utilization levels closer to 60%, 57% as mentioned. So taking into account the steps and the current environment, what are we eyeing in terms of the utilization levels going ahead?
Arvind Singhania
I think now we are seeing a far more balanced demand/supply scenario and we expect the utilization levels to be at much, much higher levels that we have seen in FY ’25. I think FY ’26 will see a substantial improvement in capacity utilization. I think it will be — it will be in the 85% plus.
Sourabh Agarwal
And last year, on a consolidated basis, the capacity utilization in film was close to 70%.
Saket Kapoor
Yes, sir.
Arvind Singhania
This year — this year it will be 85% plus.
Saket Kapoor
Okay, right, sir. And all-in the — on the capex part, what are we — so we have closing balance for control level at INR40 crores. So what are we going to spend for the current year sir.
Arvind Singhania
So we are going to be — we’re not adding any capacity, no major — any — no capacity expansion is taking place. We are only doing capex, which is required for sustenance and maintenance and improvement in quality of the assets. So and of course, which includes about a INR50 crore investment in RPT, which is going to be commissioned in August in Hyderabad. So including that, our total capital outlay for this year is about INR110 crores to INR120 crores.
Saket Kapoor
Okay, sir, INR50 is towards the RPT and the balance amount,
Arvind Singhania
The sustenance and maintenance capex?
Saket Kapoor
Okay, sir. And lastly, sir, you alluded to some factors, although you have just given some clarification that margins have started to improve, but taking into account of tariff, introduction of tariff and the geopolitical three or the reasons because of which there was a sudden dip in the margins or because as per the capacity addition, we have not seen any major capacity addition in the segment. So what led to this sudden decline in margin and what would happen in order to arrest this fall and what should be the sustainable number there as per your — and your thought process on that? You.
Arvind Singhania
I just told you that the reason for the fall in margin was because of this surge in imports from China at very, very low pricing and that is the reason why we had to drop prices and margins fell. But going-forward, this will be — this will be maintained at about INR30 to INR35 value addition — gross value addition going-forward on a 12 micron plane basis. The geopolitical situation and the tariff war has not caused any major — any — and is not the reason for this problem. For us, we have not been hit by that very marginally so if at all, very, very marginally so. So going-forward, because of increased capacity utilization, which I just mentioned will be more than 85%. And even if the margins remain at the gross value addition remaining at 30%, 35% at INR35 rupees, we also with the impact of the increased value-added sales, I think we’re going to see much better numbers going-forward.
Saket Kapoor
Right, sir, I’ll join the queue for follow-up. Thank you and all the best. Thank you.
Operator
Thank you. A reminder to all participants, please press star and one to ask a question. The next question comes from the line of Gupta from Swan Investments. Please go-ahead.
Saransh Gupta
Hello. Hello.
Arvind Singhania
Hi,
Operator
Please go-ahead,.
Saransh Gupta
Yeah. Hi, thank you, sir for the opportunity. Sir, first question was that, can you give us some light on the JV like how is it going ahead?
Arvind Singhania
JV is progressing very well and we are moving as per the timelines. And we are moving towards — we just completed our feed engineering study. That was to reconfirm the capex estimates that we have made and the — and that has been reconfirmed by the engineering company that the estimates that we had made were in-line, exactly — very much in-line with what we had made. And now we are moving towards the acquisition of land. And so we are we are progressing very well and we hope to start in the second-half of calendar year ’27.
Saransh Gupta
Great, sir. And also, sir, how much capex investment will we be doing in FY ’26 for the same?
Arvind Singhania
So the total that is a joint — that’s a joint-venture. It’s a 50-50 joint-venture between Esther Industries and Loop Industries of Canada. So the total capex outlays is expected at about $175 million to $180 million
Sourabh Agarwal
With a debt-equity of 70 million
Arvind Singhania
30%, yeah. So approximately both Esther and Loop will be investing about INR250 crore INR255 crores as equity, both of us, each INR255 crores will be the investment from Ester and INR255 crores will be the investment from Loop. In terms of equity, the balance will be debt, which will be raised by the joint-venture company, which is called Ester Loop Infinite Technologies Private Limited.
Saransh Gupta
Correct, sir, understood. And sir, what are the current spreads going on like for the April and the May month?
Arvind Singhania
[Foreign Speech] you’re talking
Saransh Gupta
Yes sir
Arvind Singhania
It is about INR103 rupees for 12 micron plate.
Operator
Does that answer your question, Saranj?
Saransh Gupta
Sorry, sir, can you repeat? I guess I missed the amount.
Arvind Singhania
Yeah, it is INR103 approximately for 12 micron plane.
Saransh Gupta
Okay, sir, perfect. And sir, one last question that the capacity that we are expanding for our pet will — like is there any captive consumption for that or are we like selling it — selling it only?
Arvind Singhania
No, no. The capacity expansion is meant for captive use largely because like I said that plastic waste management rules have mandated a minimum 10% recycled content in the laminate and this will require us to supply our customers with polyester film containing recycled content. So largely it is targeted for self-use so that we can meet the customers’ demand for polyester film with recycled content.
Saransh Gupta
Okay, understood, sir. Sir, just two more questions that I have. Sir, what can be the peak revenue from specialty polymers that we are looking at?
Arvind Singhania
Peak in which — for what period are you talking?
Saransh Gupta
FY ’26 and ’27?
Arvind Singhania
Well, if peak and peak can be anything, but we are targeting a growth — CAGR growth of 25% to 30% in specialty Polymer business year-on-year.
Sourabh Agarwal
And we closed ’25 with a turnover of about INR170 crores in specialty volume.
Saransh Gupta
Okay, sir, understood. Sir, just one last question that what was the import by China done in FY ’25 or if you can tell us about calendar year ’24
Arvind Singhania
So I wouldn’t have that number, but I would — I would — I can tell you approximately don’t hold me to it, but approximately about 40,000 tons of 40,000 tons of import took place in the last six, seven months, seven months.
Sourabh Agarwal
So Jan to March — Jan to March quarter, the imports would have been at least 24 to 25 kt.
Saransh Gupta
And so does the same trend continue in month of April and May because you indicated that the value-added margin has declined by INR10 a KG in the last quarter. So for the April, May or for the current quarter, does the trend remain same or we have seen some sort of softness as well?
Arvind Singhania
April it was — it was the trend was the same. May we have yet to see because May numbers will only be known in middle of June.
Sourabh Agarwal
But what we — what we see is that or what we anticipate is that now the tariff situation between China and US has eased up. So that should lower the pressure of Chinese suppliers in terms of dumping their material in India. So we are expecting a sustained trend of reduction in the import numbers going-forward
Saransh Gupta
Okay, understood, sir. Thank you so much, sir. And all the best.
Operator
Thank you. The next question comes from the line of Rahil from Crown Capital. Please Go-ahead.
Rahil Shah
Good evening. Can you hear me?
Arvind Singhania
Yeah.
Rahil Shah
Yeah, sir. So in terms of like on a consolidated level, what are we expecting in terms of revenue growth for FY ’26 and what will be the key growth drivers there?
Arvind Singhania
I think.
Sourabh Agarwal
Yeah, we — so we closed the financial year ’25 with a consolidated turnover of about INR1,100 crores. We are expecting anything between INR1,450 crores to INR1,500 crores in FY ’25, ’26 with what kind of EBITDA margins you think you can do? So EBITDA margin should be in the range of about 13% to 16% for the company.
Rahil Shah
Okay, for FY ’26. And with regards to the key growth drivers, like where-is the demand the strongest?
Arvind Singhania
There will be a growth in specialty Polymer business. Like I said, we expect to grow by about 25% in specialty polymer.
Rahil Shah
Yeah.
Arvind Singhania
And of course, because of better capacity utilization, up from 70% to more than 85%. So there will be a substantial jump-in turnover because of polyester films. And on-top of that, we are expecting a very healthy growth in our value-added specialty film portfolio. So we closed the year with on a consolidated basis of 23% of our production was of specialty film, which we expect to grow to 27% to 28%, 27% 28% in this year. So all these will contribute to the
Sourabh Agarwal
— and this proportion of ’27 is on a higher-volume of total sales of film business.
Rahil Shah
Right. Okay. And sorry, just a confirmation, what was the ForEx fluctuation you mentioned earlier, the amount for the whole year.
Sourabh Agarwal
So the amount for the whole year was INR4 crore rupees. This is basically on account of the foreign currency loan that we have taken in Flimtech from OLB Bank Germany, in euro denomination.
Rahil Shah
Okay. Okay, got it. Yes. Thank you and all the best.
Operator
Thank you. The next question comes from the line of Deepak Malothra from Capgrow Capital Advisors LLP. Please go-ahead.
Deepak Malhotra
Just hold-on. Hello, am I audible?
Arvind Singhania
Yeah.
Deepak Malhotra
Okay, great. Thank you. First of all, congratulations to you on a very good set of numbers. I think the problem what we saw in-quarter four or I should say almost one, 18 months back, I think that is over and that’s showing in the numbers. But what is typically what we have seen over the last 30 years in the industry, we are going to see it again. Now, again, we are seeing that Polyplex has announced sometime back almost a INR560 crore expansion to put up a 50,000 tonne film plant. Gindal Poly has announced INR700 crore expansion program, part of which again will be in polyser film. And overall, this nameplate capacity in Film is again going to go to almost 16 lakh tonnes per annum and BOPP also a similar number if of all the lines which are now being imported as they get installed over the next two years. So while we are again basically come up from a situation of a trough in the cycle, we are again seeing substantial capacity expansion within the country and obviously, as you also alluded to China dumping in the quarter. So how do you see really the market developing over the next two to three years and where are we in the cycle and two, how it will affect the margins, please? Thank you.
Arvind Singhania
Okay. So first of all, please note that no more new capacity is coming up for the next two to 2.5 years. By the time the polyplex expansion will come, there will be a need for new capacity because the demand growth in the domestic market is very, very healthy and in our opinion, it is at around 10% to 12% per annum. So there will be a need for capacity. I don’t think going-forward that there will be a surge in capacity like what we saw in ’23, ’24. That kind of surge is not going to take place again. And I think that producers will be more prudent in their capacity expansion plans if. So we don’t expect this time around that it’s going to — it’s going to create such a major problem.
Number two, we are very confident, we are very, very confident that by the time the new capacities start coming in three to four years later, by that time, our VAS portfolio would have been built to such an extent that it will come — it will mitigate to very largely to the cyclicality problem. So that — our approach is very clear. And on-top of that, our specialty polymer growth that we have planned out will further mitigate the problem of cyclicality. So as — we — first of all, we don’t expect any major capacity expansion and create a glut like we saw in 2024. And on-top of that, even if something like that were to happen, we will ensure that we build our specialty product portfolio to such an extent that it will not affect us.
Deepak Malhotra
So Arvind ji, when you say that then do you see the margins inching up from here onwards still that trend is going to
Arvind Singhania
— we see the margins inching up from here onwards. Definitely the — one of the problems, like I said, has been the predatory pricing coming in from China, which we are addressing separately by approaching the government of India to take care of it. So you feel that is momentary, sir, right? Yeah, that is momentary, that is momentary and my capacity basically just say capacity utilization be — a bitch already capacity utilization.
Deepak Malhotra
GG, sir.
Arvind Singhania
[Foreign Speech]
85%, 90% IG, even with the lower-margin, the absolute numbers are going to be much better.
Deepak Malhotra
But if I go back to the last call, I’m saying one year call-in May 2024, then we were at 86% capacity utilization if my notes which are taken are showing me correctly. So we saw that coming down and now obviously, as you say, sir, it will go up. Okay, that’s fine. I’ll take you for that. My other question just to probe further on this is in terms of the margins. So what were the peak margins you have seen in the cycle, number-one? And two, how far are we away from that? And when do you think we will reach there?
Arvind Singhania
[Foreign Speech] or till early ’23, those kind of margins are like INR75, INR80 value addition. I don’t think we are going to be seeing that for some time to come. Let’s be very honest. Those were — were — those are crazy high margins. So [Foreign Speech] I don’t think that will — in fact, that is that is one of the reasons why we saw a surge in capacity because people saw such tremendous profitability that you got so I don’t think we’re going to see those kind of numbers. But going-forward, if we are able to achieve INR40 value addition, it’s going to be phenomenal number for achieving a very more than decent profitability numbers for the company and for the industry per se.
Deepak Malhotra
[Foreign Speech] you mentioned about INR10 rupees. So where are we basically in that cycle, sir? INR40 is the peak where are we at the moment?
Arvind Singhania
Yeah, we are at about INR30 right now. And we are going to see a you know this improving slightly over a period of time. But for us, please understand that we are differentiated from the — from competition because we have a very-high vast portfolio, which is a specialty film portfolio, which is going to keep on increasing substantially. So that is going to be the differentiator for — for Ester versus the others.
Deepak Malhotra
Okay. There is one other news item which is floating. I don’t want to confirm it, but I’m sure you will be aware that there has been fire at one of the at one of the competitors plants, you know so is that also kind of going to really affect the market at least in the short-term?
Arvind Singhania
Yes, we have heard about it and we believe that very — it’s actually a very unfortunate incident that has taken place. It’s a — what we hear from the media and from third-party sources. It’s indeed very unfortunate what has happened and our thoughts and prayers are with the management and staff and employees of the company. So beyond that,
Deepak Malhotra
I can visit yeah, I visited the plant a few years back. So I feel the same. But in terms of you think it will have at least a short-term impact on the pricing in the market, right, sir?
Arvind Singhania
Yes, sir, we will not like to comment because we don’t know if that’s directly. We have no direct knowledge. We are only — the only knowledge we have is what we hear from the media and from third-party sources. So it is not possible for us and we will not like to comment on what the impact is going to be. I think that will become clear over the next few days or weeks. And I think that will be known publicly to everybody..
Deepak Malhotra
Fair enough, sir. And one more question is which you already answered, but But just trying to prove further is on the tariffs part. So where do you see it’s really going to settle? And is it really going to affect us at all? Because we do still export, you know a part of our production.
Arvind Singhania
It’s very difficult for us to predict what the — where this tariff war will end and how it will be settled. I mean that’s something to be decided between the two governments, that is the government of the US and the government of India. So where it will settle and at what levels it will settle, it’s very difficult for us to predict. But as of now, at that 10% level, the effect for us is not is very — is very marginal, very, very, very marginal.
And to be honest, we can only hope and pray that you know, a reasonable settlement is achieved between the two governments so that we can come back to business as normal. In any case, for us, it is business-as-usual in any case right now. There is no impact.
Sourabh Agarwal
To add to what Arvind ji was saying, I just want to give you a couple of points for a perspective. Our current exposure to US in terms of our overall sales is 5% to 7% and all of it that we are selling into US is specialty films. And that kind of gives us a moat in those markets and gives us some bit of pricing power in terms of being able to recover any adverse tariff impact, we cannot recover the full tariff impact if it goes beyond 10%, but up to 10%, we have been able to pass-on all the pricing increase to the customer and protect our margins.
Deepak Malhotra
Okay. Sure. Thank you so much and wish you all the very best, sir.
Arvind Singhania
Thank you.
Operator
Thank you. Thank you. A reminder to all participants, you may press time one to ask a question. The next question comes from the line of B B. Surendra, an Individual Investor. Please go-ahead.
Surendra B
Hello. Sir, congratulations for a good set of results.
Arvind Singhania
Thank you thank you.
Surendra B
Sir, sir, have you any — have you decided about the location for the our new plant for this.
Arvind Singhania
The plant will be located in Gujarat. The plant will be located in Gujarat location
Surendra B
City identified? No.
Sourabh Agarwal
Yeah, the plant is — will be located in Gujarat.
Surendra B
Okay. Sir, just one more thing I want to ask you, is really for our energy product that we still sold-in square meter?
Arvind Singhania
No, no, no.
Surendra B
Thank you, sir.
Operator
Thank you. A reminder to all participants, please press time one to ask a question. The next question comes from the line of Vidip Shah, an Individual Investor. Please go-ahead.
Unidentified Participant
Hi, am I audible?
Arvind Singhania
Yes, please.
Unidentified Participant
Yeah. Thanks for the opportunity and congrats on good numbers. My question is basically, what will be our target value-added products
Arvind Singhania
I just mentioned that we closed for films. For the film business, we closed FY ’25 at 23% of production. And in FY ’26, we are targeting anything between 27% to 30% value-added product sales.
Unidentified Participant
Okay. And what is the current capacity for the mechanical cycling in addition to the upcoming capex? Mechanical recycling?
Arvind Singhania
Yeah. So our current capacity is about 7,000 to 8,000 tonnes per year and additional 20,000 tons is being added?
Unidentified Participant
Understood. And basically, can I get a view — your view on basically how the industry is panning out in India and globally? And basically, how are we positioning ourselves compared to our peers.
Arvind Singhania
I don’t understand it’s a very generic question. So can you please be more specific in your question?
Unidentified Participant
So I guess the main product that we have and basically what is the demand in terms of tonnage in India and basically how much we are able to cater it and how much our players are able to cater it? And are there any import or is eating our market-share apart from the domestic player?
Arvind Singhania
So the Indian domestic market is estimated at about 70,000 to 75,000 tonnes per month, which translates to about 850,000 to 900, 900,000 tonnes per annum. The total installed capacity is about 110,000 tons per month, which translates to about, 1.3 million tonnes per annum. The domestic demand is growing at a healthy 10% to 12% per annum. And globally the growth is around 4% to 5%.
Sourabh Agarwal
And we export about 20,000 — India exports about 20,000 tonnes per month, which is about 250,000 tonnes in a year.
Arvind Singhania
And we expect — we expect to see a very — a healthy improvement in capacity utilization in FY ’26.
Unidentified Participant
Okay. Thank you so much for your time, sir.
Operator
Thank you. The next question comes from the line of Aditya Shah from Or Wealth Management. Please go-ahead.
Aditya Shah
Hello, sir. Sir, just one question I had. Can you give some revenue guidance for the specialty Polymers and business, those both SBUs for the coming years?
Arvind Singhania
We gave — we gave a guidance for FY ’26, the consolidated turnover will be in the region of about INR1,500 crores. How much is it?
Sourabh Agarwal
INR1,400 to 1,500,
Arvind Singhania
1,500 tonnes — INR1,500, sorry, INR1,500 crores for FY ’26, out of which the specialty polymer is expected to grow by about — by 25%. So we closed this year at INR175 crores. So add another INR40 crores to INR50 crores in specialty polymer business. So we should be at about INR220 crores INR230 crores in that ballpark for FY ’26.
Aditya Shah
Great. And coming — for the coming years also more or less will be the same range
Arvind Singhania
That we are targeting and we are working towards achieving a 25% CAGR in the polymer.
Aditya Shah
Okay. No, because I just wanted to know for the next five years, how would you span out your business in this sector? That was the only understanding I wanted.
Arvind Singhania
My answer — my answer answers that question.
Aditya Shah
Okay. All right, all right. Yeah. Thank you so much, sir.
Operator
Thank you. A reminder to all participants, please press time one to ask a question.The next question comes from the line of Sana, an individual Investor. Please go-ahead.
Sana
Good evening, sir. Thank you for the opportunity. Sir, could you please elaborate on long-term sustainability roadmap? Or are there any specific target for carbon footprint reduction?
Arvind Singhania
Sorry, can you repeat the question again, please?
Sana
Like could you elaborate on Easter Industries long-term sustainability roadmap? Or are there any specific target for carbon footprint reduction?
Arvind Singhania
Yes. Yes, yes. So sustainability is at the forefront of our business of our business plan and our objectives. So we are addressing it in many ways. As far as even our products go, we are working towards sustainable solutions for our customers. And on-top of that, we are now venturing into — we are venturing into renewable power for both our facilities at — so hopefully by the first or second-quarter of financial of calendar year ’26, both our plants should be using about 60% to 70% renewable power sources for the use of power and we have a roadmap which we are preparing for continuous reduction in the carbon footprint, reduction in the carbon dioxide emissions.
Sana
Okay. And sir, one more question. Has the company undertaken any third-party ESG assessment?
Sourabh Agarwal
No, not yet.
Arvind Singhania
Not yet.
Sana
Okay. Or is there any plan to do so in coming year?
Arvind Singhania
We will be doing that.
Sana
Okay, okay. And sir, one more question. I just wanted to ask like, are there any newly marquee clients onboarded?
Arvind Singhania
Sorry, new what
Sana
New clients onboarded recently?
Arvind Singhania
Customers of new customers?
Sana
Yeah, yes, yes, sir. Yes.
Arvind Singhania
That is continuous work-in progress, ma’am.
Sana
Okay, all right, sir. Okay. That’s all from my side. Thank you.
Operator
Thank you. The next question comes from the line of Rahil from Crown Capital. Please go-ahead.
Rahil Shah
Yes, hi, sir. Thank you for the opportunity again. Sir, just a clarification. In FY ’25, on a consolidated basis, you did almost INR1,300 crores, right, in revenue?
Sourabh Agarwal
Yes.
Rahil Shah
Yes. Which was I believe a 20% growth over FY ’24?
Sourabh Agarwal
Yes.
Arvind Singhania
Yes. Yes.
Rahil Shah
So now when you’re guiding for INR1,500 crores, that’s roughly 15% growth. But you say your spec polymer business, you expect 25% to 30%. So the rest of business will not be growing as much, is that is the sentiment weak over there?
Arvind Singhania
Yeah. So we closed the The year at
Sourabh Agarwal
1,28
Arvind Singhania
And the turnover guidance that we have given of INR1,500 crores in that of the increase, only about INR40 crore to INR50 crores will come from specialty polymer. So that will come from film.
Sourabh Agarwal
So you are taking equal proportion of both the products. It is not equal. It is INR175 for special polymer and balance is from film business. So there is a growth in both the businesses in 20 — especially polymer growth is 25%.
Arvind Singhania
And this number — this number you may take as a little bit of a conservative number that guidance.
Rahil Shah
Yeah, because you mentioned that everything is looking really positive right now, your utilization will be more — demand is strong. That’s why I was just wondering why a weaker guidance compared to last year, this year what we’ve achieved against 20%. But okay, if you’re saying it’s on a conservative basis, then yeah, okay. Got it now. Thank you and all the best.
Arvind Singhania
Thank you.
Operator
Thank you. Participants, please press star and want to ask a question. Participants, please press star and one to ask a question. As there are no further questions, I would now like to hand the conference over to. As there are no further questions, I would now like to hand the conference over to Mr Arvind Singhania for the closing remarks.
Arvind Singhania
I would like to thank all our stakeholders, partners and team members for their continued support. And thank you all for participating in this call. We remain committed to driving sustainable growth, delivering value and building on the momentum achieved in FY ’25, and we look-forward to an even stronger FY ’26. Thank you.
Operator
Thank you, sir. Ladies and gentlemen, on behalf of Industries Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines