Filatex India Ltd

- Filatex India Limited is executing a comprehensive CAPEX program of INR 690 crores aimed at growth and value-added portfolio strengthening, including PFY, Brownfield expansions, and upgrading FDY and DTY capacities. - A key strategic investment is the textile-to-textile recycle Greenfield project converting end-of-life textiles into virgin-grade polymer and yarn, expected to start by end of September 2026. - Automation initiatives at the Dahej plant to improve operational efficiency and reduce labor dependency. - Renewable energy transition to increase the share of green power in the energy mix. - A steam distribution project to monetize surplus steam from the captive power plant by supplying to nearby industries. - All projects are advanced in construction and on schedule for commissioning, mostly by September 2026. - These initiatives collectively aim to add INR 218-230 crores annually to EBITDA. - The CAPEX will be funded through INR 335 crores debt, with the rest from internal accruals (no fundraising planned).

- FY27 growth outlook is cautious due to current war situation; normal years could see INR 500 crores growth on a base of INR 4,200-4,300 crores revenue (Page 13). - Brownfield project expected to generate around INR 500 crores top line; Greenfield recycling project expected to add INR 350-400 crores revenue (Page 12). - Textile-to-textile plant targeting INR 300-400 crores top line; focus largely on selling recycled chips rather than converting to yarn in-house to optimize revenue growth (Page 19). - Industry capacity utilization currently reduced (~60-75%), expected to normalize as geopolitical and labor issues ease (Page 7). - Demand is expected to recover as geopolitical tensions subside, with polyester industry poised for strong growth post normalization (Page 12-13). - Expansion and new projects expected to start contributing fully in H2 FY27, with gradual capacity utilization ramp-up (Page 15).

- Filatex India expects a minimum 30% EBITDA margin from the textile-to-textile recycling plant, targeting INR 65-85 crores EBITDA, with potential for improvement post-stabilization. - The company's integrated CAPEX program (~INR 690 crores) aims for an annual EBITDA addition of INR 218-230 crores from initiatives like PFY, Brownfield expansion, textile recycling, automation, and renewable energy transition. - Steady-state EBITDA margin target for Filatex is double-digit, with the specialty subsidiary (Texfil) aiming for at least 30%. - EBITDA is expected to grow by about INR 140 crores (INR 70 crores additional EBITDA in FY27 from non-recycle operations) with full capacity utilization starting second half of FY27. - The company foresees potential above 10% margin for the base polyester business as new PTA capacity normalizes and commissions by September FY27. - Overall, earnings and profitability are expected to improve significantly over the next 2-3 years driven by capacity expansion, integration, and technological advancement.

- Filatex India is currently in talks with many companies for their recycling projects and has been giving samples from their pilot plant for approval to place bigger orders once the plant is operational (Page 11). - Two clients have already achieved validation for their Ecosis product, with efforts ongoing to secure full volume orders from multiple customers by year-end (Page 16). - Management is cautious not to depend on a single large client for the new textile-to-textile recycling product, preferring a diversified client base to mitigate risks (Page 16). - While some challenges exist with the new product type and sales timelines due to approval processes, management is optimistic about securing orders before the recycling plant starts production (Page 11).

- Filatex India Limited's INR 690 crores CAPEX will be funded primarily through internal accruals; no new fundraising is planned. - Additional debt of around INR 335 crores will be taken, with the rest coming from internal sources (Page 14). - By FY27 end, total debt is expected to be around INR 350-360 crores (Page 8). - There is no indication of equity fundraising; the company plans to manage expansions and projects with internal funds and manageable debt levels (Page 14 and 8).