Filatex India Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Filatex India Ltd trades at ₹87.4, in a confirmed uptrend and 10 weeks into that stage. That is +47.5% against its own 200-day average. It sits at 100% of a 52-week range of ₹38 to ₹87. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 21 straight weeks.

Today the stock is in a confirmed uptrend — week 10 of stage 2, confirmed. At ₹87.4 it trades +47.5% versus its 200-day average and sits at 100% of its 52-week range (₹38–₹87).

Against the market, two honest reads. Cumulative: over the last 10.5 years the stock moved +2,256% while the NIFTY 500 moved +267% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 21 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

Filatex India Ltd's story is not scored yet against the markers our research file set on 22 August 2026. Where it sits in its own cycle: EXPANSION_STARTED. Our fortnightly research layers last read it on 22 August 2026.

Our read, 22 August 2026. Filatex is executing a ₹690 crore capacity and recycling pivot, but repeated project deferrals and FY27 Ecosys utilization walk-backs make operational commissioning the critical proof point.

From the numbers. The multiple sits at 19.3x, below the 10-year median of 19.6x (44th percentile), while earnings inflection has begun. Operating margin recovered to 7% in Jun 2026 with revenue expanding to ₹1,145 crore, though capex…

From the price. Price stage 2, week 10 — above its 200-day line, relative strength rising.

From the research. Filatex is executing a ₹690 crore capacity and recycling pivot, but repeated project deferrals and FY27 Ecosys utilization walk-backs make operational commissioning the critical proof point.

🚨 Where they disagree. The multiple sits at 19.3x, below the 10-year median of 19.6x (44th percentile), while earnings inflection has begun. Operating margin recovered to 7% in Jun 2026 with revenue expanding to ₹1,145 crore, though capex commissioning delays and inventory gains require ongoing verification.

What is proven. Filatex is executing a ₹690 crore capacity and recycling pivot, but repeated project deferrals and FY27 Ecosys utilization walk-backs make operational commissioning the critical proof point.

What is not proven yet. A failure to commission brownfield PFY capacity by October 2026, extended delays in Ecosys stabilization past FY27, or an inability to sustain operating margins above 7% as raw material inventory gains normalize would invalidate the operational recovery thesis.

🚨 What would change our mind. A failure to commission brownfield PFY capacity by October 2026, extended delays in Ecosys stabilization past FY27, or an inability to sustain operating margins above 7% as raw material inventory gains normalize would invalidate the operational recovery thesis.

Layer 1 read, 22 August 2026 — KEEP. Cheap-ish yarn maker whose earnings are really rising, but every dated promise so far has slipped. Filatex earns its top spot in this batch on the plain arithmetic: the shares change hands at 19.3 times trailing earnings, right on their own ten-year middle, while profit per share has more than doubled over two years. The next leg of growth is real and dated — 55,000 tonnes of new yarn capacity worth about ₹500 crore of revenue and a recycling plant worth ₹350-400 crore — and management puts the whole ₹690 crore programme at ₹218-230 crore of yearly operating earnings against ₹346.5 crore earned in all of FY26. The reason this is not high conviction is delivery: the recycling plant's FY27 utilisation promise was withdrawn and the start pushed to end-October, and the feedstock margin…

What would change Layer 1’s mind. The Timeline says the thesis breaks if brownfield capacity misses October 2026 or margins cannot hold above 7%. At my level it is narrower and nearer: if the next reported quarter shows operating margin BELOW 7% once the ₹15-17 crore inventory gain reverses, or if the Ecosys start date slips a third time past November 2026, the earnings engine is not rising at all — it is a spread wobble on a flat business, and this drops to the bottom of the slate.

🚨 Layer 2 read, 22 August 2026 — DROP. Repeated delivery changes break the execution-led recycling catalyst. The sector review independently found a Filatex-specific pattern: Ecosys moved after management twice said it was on track. The company then said FY27 would mostly be stabilisation and denied the earlier 60% utilisation framing, which violates the guidance-credibility model.

What would change Layer 2’s mind. Reconsider only after Ecosys is commissioned and a reported quarter shows recurring commercial sales and utilisation progress without another date or benefit revision.

The test written in advance. A failure to commission brownfield PFY capacity by October 2026, extended delays in Ecosys stabilization past FY27, or an inability to sustain operating margins above 7% as raw material inventory gains normalize would invalidate the operational recovery thesis. — the thesis as written as stated by the next result.

The test written in advance. Polyester-spread and raw material volatility — Polyester-spread and raw material volatility Next reported quarterly operating margin and polyester spread progression by the next result.

The test written in advance. Catalyst date and benefit slippage — Catalyst date and benefit slippage Commercial start confirmation for GAIL Mangalore and Indian Oil Paradip PTA plants by the next result.

What the company does. Q1 FY27 revenue rose 9.2% YoY to ₹1,145 crore with PAT of ₹49 crore (up 19.5%), demonstrating pricing pass-through resilience after March-April spread compression. The trailing multiple of 19.3x sits near the 10-year median of 19.6x (44th percentile), reflecting fair valuation rather than a deep cyclical discount. Brownfield PFY (55k MT) is tracking Oct 2026, but Ecosys recycling has slipped to Oct-Nov 2026 with FY27 framed as a stabilization phase, while IOC PTA is deferred to Mar 2027.

🚨 What the surface reading misses. The surface reading is: A below-median trailing multiple can look inexpensive. The research reads it further: The normalized multiple is close to the trailing multiple because current margin is close to the normalized margin.

🚨 What the surface reading misses. The surface reading is: FY26 profit expansion of 36.7% can look like a continuing earnings acceleration. The research reads it further: Revenue declined while operating profit rose, but the final quarter then fell from the December quarter and management described a post-year-end spread reset.

Lever 1 · Operating leverage — BUILDING. Brownfield PFY expansion adding 55,000 MT capacity targets ₹400-500 crore revenue uplift starting Q3 FY27. What proves it keeps working: Brownfield capacity commissioning. It stops working if Commissioning moves beyond October 2026 or incremental yarn volumes fail to find customer absorption.

Lever 2 · Value-added mix — BUILDING. GAIL and IOC PTA capacity additions of 2.4 MT aim to narrow feedstock import premiums and enhance margins by 1-1.5%. What proves it keeps working: Domestic PTA supply expansion. It stops working if Further commissioning deferrals occur or domestic PTA producers maintain import parity pricing without competitive discounts.

Lever 3 · Management change — BUILDING. Ecosys circular recycling platform targets ₹80-85 crore EBITDA at 30%+ margins once stabilized in FY28. What proves it keeps working: Textile-to-textile recycling ramp (Ecosys). It stops working if Trial approvals fail to convert into recurring orders or plant stabilization extends beyond FY27.

Lever 4 · Paying down debt — BUILDING. India-EU FTA expected by end-CY26 would eliminate 10-12% import tariffs and unlock export demand. What proves it keeps working: EU tariff access. It stops working if FTA ratification is delayed or export order conversion remains muted.

Sources: our stock research file (22 August 2026) · quarterly results through Jun 26 · the company’s own earnings calls. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Filatex India Ltd reported ₹1,145 Cr of revenue in the Jun 26 quarter, +9.2% year on year. Over 11 years it has compounded at 9.2% a year. The last full year, FY26, came in at ₹4,161 Cr. The last four reported quarters add to ₹4,256 Cr.

FY26 revenue came in at ₹4,161 Cr (−2.1% on the year), capping 11 years at 9.2% compound. The latest quarter (Jun 26) printed ₹1,145 Cr, +9.2% year on year.

Pace check: the last four quarters averaged +0.3% growth against the decade's 9.2% — the current year is running slower than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +0.2% over the last 4 quarters against −0.2%/yr over the last 8 — stabilising; TTM profit +35.2% vs +23.9%/yr — accelerating.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Filatex India Ltd's operating margin is 7.0% in the Jun 26 quarter, +1.0 percentage points against the same quarter a year ago. Across 7 fiscal years the operating margin has ranged 5.0% to 9.0%. The current quarter sits inside that band.

Why this happened. Brownfield expansion across FDY, POY, and DTY reaches 50% completion in September 2026 and balance in October 2026, expanding specialty yarn product mix and driving operating leverage.

The latest quarter's operating margin is 7.0%, +1.0 pp against the same quarter a year ago. Across 7 fiscal years the operating margin has ranged 5.0%–9.0%.

Why the margin moved: operating margin went +0.4 pp year on year while gross margin went −1.5 pp — the gain came mostly from the gross line: input costs and pricing.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Filatex India Ltd earned ₹49.0 Cr of net profit in the Jun 26 quarter, +19.5% year on year. Full-year FY26 profit was ₹183 Cr. The 11-year compound rate is 30.2%. That is 4.3% of the quarter's revenue. The same quarter a year earlier earned ₹41.0 Cr.

Jun 26 profit was ₹49.0 Cr, +19.5% year on year. On the full year, FY26 printed ₹183 Cr (+36.6%), and the 11-year compound rate is 30.2%.

Why profit moved: revenue contributed +9.2% and the margin +1.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +75.8% vs revenue +0.3%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 201% of Filatex India Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹246 Cr of operating cash against ₹183 Cr of profit. After ₹142 Cr of capital spending, ₹104 Cr was left as free cash.

FY26: operating cash of ₹246 Cr against reported profit of ₹183 Cr, leaving free cash of ₹104 Cr after ₹142 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 201% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 201%: the cash cycle tightened 59 days between FY16 and FY26 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: the bigger cash user is investment — capital spending ran 3.8× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Filatex India Ltd's cash conversion cycle runs −5 days in FY26, down from 54 days in FY16. Capital spending ran ₹583 Cr over the last 3 years. At FY26 sales of ₹4,161 Cr each day of that cycle holds about ₹11.4 Cr, so roughly ₹−57.0 Cr sits inside the business at any moment.

FY26: debtors at 9 days, inventory at 49 days — roughly 1.6 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of −5 days, tighter than FY16's 54.

The full loop: cash goes out to suppliers and production on day 0; stock waits 49 days to sell; customers pay about 9 days after that; and suppliers themselves are paid at 63 days — netting out to the −5-day cycle.

In money terms: at FY26 sales of ₹4,161 Cr, each day of the cycle holds about ₹11.4 Cr — so the −5-day loop keeps roughly ₹−57.0 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹583 Cr over the last 3 fiscal years against ₹153 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹100 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Filatex India Ltd earns a ROCE of 19% in FY26. That is up from a trough of 12% in FY16. Return on invested capital clears the cost of that capital by +2.2 percentage points, so growth here adds value rather than only size. The wiring behind it is 4.4% net margin on 1.68× asset turns.

FY26 ROCE is 19%, recovered from a FY16 trough of 12% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 4.4% net margin × 1.68× asset turns × 1.64× balance-sheet leverage ≈ 12.1% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 14.2% − 12.0% = a +2.2 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Positive but thin — value creation with little room for error.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Filatex India Ltd carries total debt of ₹150 Cr against shareholder equity of ₹1,505 Cr as of Mar 26, a debt-to-equity of 0.10 — effectively unlevered. On the annual view that ratio went from 0.33 in FY22 to 0.10 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Why this happened. Zero-duty market access into Europe's €370 billion textile market creates export tariff parity with Vietnam and advantage over China.

Mar 26: total debt of ₹150 Cr against shareholder equity of ₹1,505 Cr — a debt-to-equity of 0.10. On the annual view, debt-to-equity went from 0.33 (FY22) to 0.10 (FY26). The returns on this page are earned, not borrowed.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Foreign institutions cut 1.2 points of Filatex India Ltd over 8 quarters, the biggest move on the register. That takes foreign institutions to 4.0% of the company. Promoters moved +0.7 points over the same window, to 65.5%. The register is read on the four disclosed classes only; nothing is inferred between filings.

Why this happened. Proprietary chemical recycling of polyester textile waste commands a 40-50% pricing premium over virgin chips to meet European EPR mandates, ramping to full commercial scale in FY28.

The register over the last two years — Foreign institutions: −1.2 points over 8 quarters to 4.0%; Promoters: +0.7 points over 8 quarters to 65.5%; Domestic institutions: +0.5 points over 8 quarters to 2.8%.

🚨 Why the register moved: foreign institutions drove it (−1.2 points), absorbed on the other side by promoters (+0.7 points) — distribution into the market’s bid.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Filatex India Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Filatex India Ltd trades at 20.3× P/E, mid-range by its own standards (56th percentile). Its long-run median P/E is 19.6×, measured across 10.0 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 20.3× is mid-range by its own standards (56th percentile), against a long-run median of 19.6× measured over 10.0 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +36.8% against a +56.5% price move — the price outran earnings, pushing the multiple UP its own range.

The price move, decomposed: over 5y, of the +10.4%/yr price move, ~+17.6%/yr came from earnings growth and ~−7.2 pp from the multiple (compressing); over 10y, of the +28.9%/yr price move, ~+20.1%/yr came from earnings growth and ~+8.8 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

Solved at its 26 August 2026 price, Filatex India Ltd was paying for profit growth of about 11.0% a year. Profit itself has compounded 30.2% a year over the past 11 years. Today the market pays 20.3× P/E, the 56th percentile of its own 10-year range.

What the two numbers say together. The multiple is unremarkable against its own past, and the growth the price is paying for is below what this company has actually delivered.

How to hold this number: it is a reading of one day's price, taken on 26 August 2026, not a running figure — every other number on this page, the multiple included, is read off the live quote as of 11 September 2026. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements.

Stage: Mixed Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Filatex India Ltd reads as mixed on its fundamental arc. Mixed — growth is normalizing off a hyper-growth base: profit growth has eased from +82.5% at its peak to +35.2% but is still expanding, ROCE lifting at 15.6%. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: when the curves disagree, the per-curve reads above matter more than any single verdict.

4-Factor Sector Score

75.3/100 — rank 1 of 4 in Textiles - Manmade Fibre - PFY/PSF · 97% evidence confidence

Filatex India Ltd scores 75.3 out of 100 against the 4 companies it is compared with in Textiles - Manmade Fibre - PFY/PSF, ranking 1. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 25 + 14.9 + 15.4 + 20 = 75.3. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Said versus delivered

What Filatex India Ltd's management promised, set against what actually arrived — 4 tracked promises on the record. Read straight from the company’s own earnings calls. A promise that slipped stays on this page after it is met.

🚨 Ecosys Commissioning Date Pushed · 31 July 2026. In February and May 2026, management repeatedly targeted production by the end of September and described the project as on track. The July 2026 call moves commencement to the end of October or early November, a material 1-2 month slip from the repeated target; management cites installation and commissioning complexity but does not identify a specific new cause for the delay.

Ecosys FY27 Utilization Visibility Reduced · 31 July 2026. The February 2026 call indicated a minimum initial utilization of 60% and expected the plant to reach full stream within 3-6 months. In July 2026, management expressly denied a 60% FY27 utilization target and said FY27 would primarily be a stabilization period, materially reducing the visibility supporting the earlier ramp assumptions.

PTA Capacity Commissioning Delayed · 31 July 2026. The May 2026 call expected GAIL's Mangalore PTA plant to begin commercial production around July 2026 and IOC's Paradip project to commission around December 2026. The July 2026 call now places GAIL's project at trial production in August-September 2026 and pushes IOC commissioning to March 2027, without explaining the schedule changes; this affects the timing of expected domestic PTA availability and related margin benefits.

Steam Project Commercialization Delayed Further · 31 July 2026. In May 2026, management expected the steam project to be online by mid-July at the latest, but the July 2026 call moved commercialization to September. Because management associated the project with approximately INR 60 crores of EBITDA, the additional delay has potential FY27 earnings implications and the latest explanation of unspecified hiccups is not quantified.

Every quote above is taken word for word from the company’s own earnings calls.

Frequently asked questions