PNN
Surat (Gujarat) [India], August 6: Sumeet Industries Limited (NSE Code: SUMEETINDS, BSE Code: 514211), one of the leading integrated polyester manufacturers engaged in the production of Pet Chips, Partially Oriented Yarn (POY), Fully Drawn Yarn (FDY) and Polyester Texturized Yarn, has announced its Unaudited Financial Results for Q1 FY27.
Key Consolidated Financial Highlights
Q1 FY27
- Total Income: ₹272.74 Cr
- EBITDA: ₹8.85 Cr
- EBITDA Margin: 3.24%
- Net Profit: ₹1.14 Cr
Key Business Developments
Successful Completion of ₹199.75 Cr Rights Issue
The Company successfully completed its ₹199.75 Cr Rights Issue, receiving an overwhelming response from shareholders. The Rights Issue has significantly strengthened the Company's balance sheet and provides the financial flexibility required to accelerate its next phase of growth.
The net proceeds of ₹194.90 Cr will be utilised towards:
- Strengthening working capital
- Operationalisation of the Nakoda CP Plant
- Repayment of borrowings
- Development of a 6.5 MW captive solar power project
Nakoda CP Plant to Drive Next Growth Phase
The acquired 140,000 TPA Bottle Grade PET Chips (CP) Plant is progressing as planned and is targeted to commence commercial operations during Q1 FY28.
Once operational, the facility is expected to generate nearly ₹1,500 Cr of additional annual revenue and approximately ₹70 Cr of EBITDA, significantly strengthening the Company's backward integration and long-term profitability
Commenting on the performance, Mr. Pratik R. Jaju, Managing Director of Sumeet Industries Limited, said, "We have begun FY27 on a healthy note with Total Income growing by over 9% year-on-year despite an exceptionally challenging operating environment for the polyester industry.
During the quarter, the industry witnessed an unprecedented surge in raw material prices following geopolitical tensions in the Middle East. The sharp increase in crude-linked feedstock prices, including PTA and MEG, coupled with elevated logistics costs, temporarily impacted margins across the entire polyester value chain. We believe these were exceptional and short-term disruptions rather than structural challenges for the business.
Encouragingly, the situation has already begun to normalise. Crude oil prices have largely stabilised, supply chains have improved, and raw material availability has become significantly better. This provides us with greater confidence in margin recovery over the coming quarters.
One of the biggest milestones during the quarter was the successful completion of our ₹199.75 Cr Rights Issue, which has substantially strengthened our financial position. The infusion of growth capital enables us to expand working capital, accelerate the commissioning of the Nakoda CP Plant, invest in renewable energy, and reduce debt.
The repayment of borrowings is expected to meaningfully lower finance costs, which, together with improving operating conditions, should provide a strong boost to our profitability going forward.
We remain highly confident about our business outlook. Based on the current demand environment, improving raw material scenario and execution of our strategic initiatives, we expect to deliver more than 30% revenue growth during FY27, along with an EBITDA margin of around 6% and a Profit After Tax margin in the range of 3.5% to 4% for the full year.
Looking ahead, our focus remains on flawless execution, operational excellence and disciplined capital allocation. With stronger integration, lower financing costs and capacity expansion initiatives underway, we believe Sumeet Industries is entering a new phase of sustainable growth and value creation for all stakeholders."
About Sumeet Industries Limited
Incorporated in 1988, Sumeet Industries Limited is a Surat-based integrated polyester manufacturer engaged in the production of Pet Chips, Partially Oriented Yarn (POY), Fully Drawn Yarn (FDY), and Polyester Texturized Yarn. The company has been taken over by the Eagle Group, Successful Resolution Applicant, in pursuance of the Hon'ble NCLT order dated 16 July 2024. The promoters of Eagle Group are seasoned technocrats with over 40 years of experience in the textile industry, bringing strong operational and strategic expertise to the company.
With over four decades of experience, Sumeet Industries operates a technologically advanced manufacturing facility equipped with international-standard quality testing and R&D infrastructure for developing a wide range of yarns and applications. The Board has approved Phase 1 of the polyester yarn capacity expansion, involving an addition of 15,000 tonnes per annum with an investment of ₹30 Cr, aimed at strengthening the company's presence in the value-added synthetic yarn segment while supporting scale and profitability.
The company has also invested a 27% stake in HI-URJA TECHNO LLP, a Solar Power Generating Plant which has installed capacity of 14 MW as a Captive consumer and has been sourcing solar. Apart from this the company has also been weighing sourcing to get renewable power (Solar, Wind and Both) under Captive/Group Captive from various Generators
Sumeet Industries is also focusing on developing value-added yarns, introducing Bright and dope dyed yarn, and widening its product range to cater to diverse applications within the domestic textile industry.
In FY26, the company recorded revenue of ₹1,053.81 Cr, EBITDA of ₹60.77 Cr, and Profit After Tax (Including Exceptional Item) of ₹27.33 Cr.
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