Century Enka LimitedQ2 FY27 Results & Financial Update
Century Enka Limited: Q2 FY27 consolidated results and company financials – revenue ₹558.23 Cr, PAT ₹18.49 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Century Enka price & chart
Quarter overview
Quarterly earnings analysis
Century Enka Limited reported revenue from operations of INR 558.23 crore for the quarter ended September 30, 2026, marking a stable performance compared to INR 554.29 crore in the preceding June quarter (Q1 FY27).
Net profit after tax for Q2 FY27 stood at INR 18.49 crore, reflecting a contraction compared to INR 61.70 crore in Q1 FY27, as margins normalized from the low-cost opening stock benefits enjoyed in the previous quarter.
Profit before tax for the quarter was recorded at INR 27.51 crore compared to INR 79.34 crore in the preceding quarter, while basic and diluted earnings per share stood at INR 8.46 versus INR 28.24 in Q1 FY27.
Total income for the quarter reached INR 568.04 crore, up from INR 562.78 crore in the preceding quarter, supported by interest income of INR 10.47 crore and other income of INR 9.81 crore.
Sales volumes during the quarter achieved a total of 20,162 metric tonnes compared to 17,920 metric tonnes in the corresponding quarter of the previous fiscal year, demonstrating healthy physical demand across key segments.
Management noted that operational performance was tempered by high volatility in raw material prices, surging imports of lower-grade yarns from China at competitive prices, and increased grid power tariffs at the Bharuch facility alongside higher LNG rates.
Century Enka Limited reported consolidated revenue from operations of INR 558.23 crore for Q2 FY27, representing a modest increase from INR 554.29 crore in the preceding quarter (Q1 FY27).
Total income for the quarter reached INR 568.04 crore compared to INR 562.78 crore in the previous quarter, bolstered by other income components including interest earnings.
01 · Business model
What does Century Enka do?
Century Enka Limited was established in 1965 by Late Shri B.K. Birla in collaboration with AKZO Nobel of the Netherlands, growing into one of India's largest producers of Nylon Filament Yarn (NFY) and Nylon Tyre Cord Fabric (NTCF).
The company operates two state-of-the-art manufacturing facilities located in Pune (Maharashtra) and Bharuch (Gujarat), possessing an aggregate manufacturing capacity of approximately 92,000 MTPA supported by 4 operating locations and 39 dealers.
Its product portfolio spans high-quality nylon yarns used for fish-twines, conveyor belts, sportswear, activewear, sarees, and intimate apparel, alongside customized nylon and polyester tyre cord fabrics for automotive reinforcement.
The company markets its products under established brands such as 'Enkalon' for premium virgin material and the newly launched 'neunyl' brand for chemically recycled yarn produced from pre- and post-consumer waste.
02 · Historical context
What shaped the business before this quarter
In FY24, the company recorded operational revenue of INR 1,744.2 crore and an EBITDA margin of 4.75%, operating on a sales volume of 67,770 MT.
Operational revenue grew to INR 2,001.7 crore in FY25, accompanied by an expansion in sales volume to 78,425 MT and an EBITDA margin of 5.73%.
During FY26, operational revenue adjusted to INR 1,705.4 crore with sales volume at 73,693 MT, while EBITDA margins strengthened significantly to 8.67%.
03 · Financial snapshot
Current quarter vs the available comparable
| Metric | Q2 FY27 | Previous quarter |
|---|---|---|
| Revenue from operations | ₹558.23 Cr | ₹554.29 Cr |
| Total income | ₹568.04 Cr | ₹562.78 Cr |
| Profit before tax | ₹27.51 Cr | ₹79.34 Cr |
| Profit after tax | ₹18.49 Cr | ₹61.70 Cr |
| EPS | ₹8.46 | ₹28.24 |
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Festive season demand provided steady support for higher sales volumes of nylon filament yarn during the quarter.
Passenger vehicles and commercial vehicles acted as key growth drivers for the tyre cord fabric segment, benefiting from robust underlying automotive activity.
Revenue from operations edged up sequentially to INR 558.23 crore in Q2 FY27 from INR 554.29 crore in Q1 FY27, reflecting stable offtake in core synthetic yarn segments.
Total income reached INR 568.04 crore, supported by interest income of INR 10.47 crore and other income of INR 9.81 crore.
What drove margins
High volatility in raw material prices created ongoing cost pressures, compressing operating margins relative to the preceding quarter.
Power expenses rose due to higher grid power tariffs at Bharuch and elevated LNG rates, prompting mitigation efforts through expanded hybrid power capacity.
Margins normalized during Q2 FY27 compared to Q1 FY27, which had benefited from low-cost opening stock inventories.
PAT margin contracted from 11.13% in Q1 FY27 to 3.31% in Q2 FY27, driven by higher provisioning expenses and lower operating margins.
Depreciation stood at INR 14.67 crore while finance costs were kept minimal at INR 0.47 crore, exerting fixed operational charges on the earnings base.
05 · Demand, customers & order book
Where demand is coming from
Distribution and sales operations are supported by a widespread network of 39 dealers across the country.
06 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
Reinforcement sales accounted for 45% of H1 FY27 product-wise sales, supported by healthy underlying demand in the automotive sector despite pricing pressures and import competition.
Yarn products formed 52% of H1 FY27 sales, with company focus remaining on higher-margin value-added products and capacity additions during the quarter.
Other product categories contributed 3% to total sales during the first half of fiscal 2027.
Geography and market mix
The company maintains a dominant domestic market presence with a 24% share in Nylon Filament Yarn and a 25% share in Nylon Tyre Cord Fabric.
07 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
The company operates two state-of-the-art manufacturing plants in Pune, Maharashtra, and Bharuch, Gujarat, with a combined manufacturing capacity of approximately 92,000 MTPA.
Projects, capex and execution
The company is actively increasing hybrid power generation capacity at its manufacturing facilities to mitigate rising grid power tariffs and high LNG costs, with benefits expected starting Q4 FY27.
08 · Strategy & new businesses
How the company is trying to change its growth mix
The approval process for Polyester Tyre Cord Fabric used in passenger vehicle tires is progressing as planned, with commercial sales anticipated to commence in Q4 FY27.
09 · Reported developments
What changed operationally
Sales volume increased to 20,162 MT in Q2 FY27 from 17,920 MT in Q2 FY26, reflecting healthy underlying product demand.
H1 FY27 operational revenue reached INR 1,112.5 crore with net profit touching INR 80.2 crore, reflecting solid cumulative performance over the first six months.
Revenue from operations demonstrated sequential resilience, rising slightly to INR 558.23 crore despite challenging input cost dynamics.
10 · Pressure points & risks
What is not going smoothly
Continued influx of low-priced base and lower-grade yarn imports from China, alongside a surge in NTCF imports, exerted pricing pressure and impacted operating margins.
Management noted that deficit monsoons, high inflation, rising interest rates, and ongoing geopolitical uncertainties involving crude oil and conflict situations could influence near-term demand.
Net profit dropped sharply by 70.03% sequentially to INR 18.49 crore due to increased provisions and tax burdens.
11 · Items worth noticing
The line items that can distort a quick read
Tax expense for Q2 FY27 was recorded at INR 8.87 crore against a profit before tax of INR 27.51 crore.
The company recorded provisions of INR 5.11 crore during Q2 FY27, impacting overall earnings compared to the previous quarter where provisions were not separately itemised at this scale.
12 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
Capital allocation & funding
The company maintained a strong financial position with net surplus cash on the balance sheet standing at INR 3,998 million at the end of H1 FY27.
13 · Management guidance & targets
What management is targeting from here
Management expects commercial sales of Polyester Tyre Cord Fabric to begin in Q4 FY27 as product approvals advance.
The financial benefits from expanding hybrid power capacity to counter rising grid and LNG tariffs are projected to start materializing in Q4 FY27.
14 · Beyond the numbers
What changed beyond the numbers
Dividend Track Record
The company maintained a stable dividend distribution of INR 11.00 per share for FY26, following dividends of INR 10.00 per share in each of the preceding two financial years.
15 · Previous-quarter changes
What changed since the previous quarter
Net profit receded from INR 61.70 crore in Q1 FY27 to INR 18.49 crore in Q2 FY27 due to raw material price volatility and the normalization of low-cost inventory benefits.
PBT decreased from INR 79.34 crore in Q1 FY27 to INR 27.51 crore in Q2 FY27, driven by higher quarterly provisions of INR 5.11 crore.
16 · Key Q&A
The quarter, answered directly
What does Century Enka do?
Century Enka Limited was established in 1965 by Late Shri B.K. Birla in collaboration with AKZO Nobel of the Netherlands, growing into one of India's largest producers of Nylon Filament Yarn (NFY) and Nylon Tyre Cord Fabric (NTCF).
What is the clearest takeaway from Q2 FY27?
Century Enka Limited reported revenue from operations of INR 558.23 crore for the quarter ended September 30, 2026, marking a stable performance compared to INR 554.29 crore in the preceding June quarter (Q1 FY27).
What drove revenue or demand?
Festive season demand provided steady support for higher sales volumes of nylon filament yarn during the quarter.
What mattered most for margins or profitability?
High volatility in raw material prices created ongoing cost pressures, compressing operating margins relative to the preceding quarter.
What changed operationally beyond the headline numbers?
The company operates two state-of-the-art manufacturing plants in Pune, Maharashtra, and Bharuch, Gujarat, with a combined manufacturing capacity of approximately 92,000 MTPA.
What is management guiding or targeting from here?
Management expects commercial sales of Polyester Tyre Cord Fabric to begin in Q4 FY27 as product approvals advance.
17 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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18 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Hybrid Power Commissioning: Monitor the operational rollout and cost-saving impact of expanded hybrid power capacity expected in Q4 FY27.
- 02
Import Trends and Raw Material Costs: Observe developments regarding imported yarn pricing from China and fluctuations in key raw material and fuel costs.
- 03
Provision Trends: Monitor future quarterly filings for normalisation or persistence of the elevated INR 5.11 crore provisions recorded in Q2 FY27.
- 04
Margin Recovery: Track whether PAT margins recover from the compressed 3.31% level seen in Q2 FY27 back toward double-digit historical ranges.
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