Most investors know Filatex India as a polyester yarn maker. Few know that it’s quietly building India’s first textile recycling plant on the side and has signed an MOU with Decathlon India.
Here are important details about textile recycling plant and potential profitability, but before that:
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Filatex India – Interesting details from Presentation
FY26 FINANCIALS (Standalone)
- Revenue: ₹4,160 Cr
- EBITDA: ₹346 Cr | Margin: 8.33% (+227 bps YoY)
- PAT: ₹183 Cr | Growth: +36.66% YoY
- ROCE: 14.90% | ROE: 12.96%
OPERATIONS
- Among Top 5 Polyester Filament Yarn (PFY) producers in India
- 4,17,240 TPA installed capacity, >90% utilisation
- Fully integrated melt-to-yarn value chain
THE BIGGER STORY — ECOSIS
Filatex is building India’s first commercial textile-to-textile chemical recycling plant (26,750 TPA) under its subsidiary ECOSIS, commissioning expected September 2026.
Why it matters:
- Less than 1% of global fibre today comes from textile waste — the opportunity is massive
- MoUs already signed with Decathlon India and American & Efird Global for trials
- Projected EBITDA margins of ~30–35% from recycled PFY vs ~8% from virgin PFY
- India’s textile recycling market alone is projected at USD 3.5 billion by 2030
OTHER CAPEX UNDERWAY (Total: ₹690 Cr)
- PFY brownfield expansion: +55,000 TPA (₹235 Cr)
- Renewable energy: Renewable power share rising from ~26% to ~55% (₹30 Cr)
- Steam monetisation to nearby industries: EBITDA of ₹60–65 Cr at steady state (₹85 Cr)
- Factory automation with Italian tech partner (₹40 Cr, July 2026)
NEAR-TERM HEADWIND
Q4 revenue was ₹985 Cr, down 8.75% YoY due to geopolitical tensions in West Asia that temporarily spiked PTA/MEG input costs. Government has already waived customs duty on these for 3 months from April 2, 2026.
The core business remains intact. The capex story is just getting started.
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Ekansh Mittal
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