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Ester Industries Limited (IN:ESTER)
:ESTER
India Market
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Ester Industries Limited (ESTER) AI Stock Analysis

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IN:ESTER

Ester Industries Limited

(ESTER)

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Neutral 47 (OpenAI - 5.2)
Rating:47Neutral
Price Target:
₹85.00
▼(-15.34% Downside)
Action:Reiterated
Date:05/19/26
The score is held back primarily by weak financial performance—loss-making FY2026 results with compressed margins and especially poor, inconsistent free cash flow—despite a strong revenue rebound. Technicals are slightly supportive in the near term (positive MACD and price above short-term averages) but the longer-term trend is still negative versus the 200DMA. Valuation is constrained by negative earnings (negative P/E) and a low dividend yield.
Positive Factors
Revenue Rebound / Demand Recovery
A sharp FY2026 revenue rebound (~132% YoY) signals regained end-market demand and higher plant utilization. Sustained top-line recovery can enable better fixed-cost absorption and scale benefits if the company maintains volume momentum and captures value-added sales.
Negative Factors
Weak Cash Generation
Recurring negative or inconsistent free cash flow, including FY2026's ~-0.22B, constrains internal funding for maintenance and growth capex, reduces buffer for debt repayments, and forces reliance on external financing, weakening long-term financial resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Rebound / Demand Recovery
A sharp FY2026 revenue rebound (~132% YoY) signals regained end-market demand and higher plant utilization. Sustained top-line recovery can enable better fixed-cost absorption and scale benefits if the company maintains volume momentum and captures value-added sales.
Read all positive factors

Ester Industries Limited (ESTER) vs. iShares MSCI India ETF (INDA)

Ester Industries Limited Business Overview & Revenue Model

Company Description
Ester Industries Ltd. engages in the production and sale of polyester, polymers, and other plastic compounds. It operates through the following segments: Polyester Film and Engineering Plastics. The Polyester Film segment is involved in the manufa...
How the Company Makes Money
Ester Industries Limited primarily makes money by manufacturing and selling polyester-based products to business customers. Its key revenue streams generally include: (1) BOPET (polyester) films: revenue from the sale of biaxially oriented polyest...

Ester Industries Limited Financial Statement Overview

Summary
Earnings quality is weak despite a sharp FY2026 revenue rebound: profitability turned negative (net margin ~-2.0%) and operating margins compressed (EBITDA ~6.9% vs ~11.5% in FY2025). Balance sheet leverage is moderate (D/E ~0.93) but returns deteriorated (ROE negative). Cash flow is the key drag with FY2026 free cash flow negative (~-0.22B) and a history of inconsistent/negative FCF.
Income Statement
44
Neutral
Balance Sheet
56
Neutral
Cash Flow
37
Negative
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue13.75B12.82B10.57B11.08B11.08B
Gross Profit3.38B4.87B1.41B2.61B2.99B
EBITDA1.11B1.47B33.88M1.04B1.80B
Net Income-274.71M136.98M-1.21B1.37B1.37B
Balance Sheet
Total Assets16.74B15.73B16.43B17.15B14.28B
Cash, Cash Equivalents and Short-Term Investments1.59B1.26B1.84B2.05B604.02M
Total Debt7.29B6.60B7.73B8.16B6.39B
Total Liabilities8.91B8.00B9.26B9.71B8.06B
Stockholders Equity7.83B7.73B7.18B7.43B6.22B
Cash Flow
Free Cash Flow-222.01M811.91M-296.84M-1.99B-3.52B
Operating Cash Flow392.40M1.12B437.81M577.38M618.74M
Investing Cash Flow-1.24B-564.84M417.14M-1.99B-3.92B
Financing Cash Flow631.24M-1.33B-138.83M1.14B3.84B

Ester Industries Limited Technical Analysis

Technical Analysis Sentiment
Negative
Last Price100.40
Price Trends
50DMA
90.26
Negative
100DMA
90.96
Negative
200DMA
97.49
Negative
Market Momentum
MACD
-0.79
Positive
RSI
44.01
Neutral
STOCH
16.97
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ESTER, the sentiment is Negative. The current price of 100.4 is above the 20-day moving average (MA) of 88.72, above the 50-day MA of 90.26, and above the 200-day MA of 97.49, indicating a bearish trend. The MACD of -0.79 indicates Positive momentum. The RSI at 44.01 is Neutral, neither overbought nor oversold. The STOCH value of 16.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ESTER.

Ester Industries Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
64
Neutral
₹147.75B35.940.26%4.43%1.60%
64
Neutral
₹27.99B18.530.09%19.47%11.49%
62
Neutral
₹68.96B25.791.14%24.26%-12.31%
56
Neutral
₹26.99B0.45-8.84%1863.82%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
48
Neutral
₹24.53B92.574.47%
47
Neutral
₹9.17B-31.170.56%7.26%-293.26%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:ESTER
Ester Industries Limited
87.41
-20.38
-18.91%
IN:CAMLINFINE
Camlin Fine Sciences Limited
130.55
-126.35
-49.18%
IN:FINEORG
Fine Organic Industries Ltd.
4,931.50
-231.99
-4.49%
IN:GALAXYSURF
Galaxy Surfactants Ltd.
1,949.50
-513.47
-20.85%
IN:KIRIINDUS
Kiri Industries Limited
418.95
-157.30
-27.30%
IN:ROSSARI
Rossari Biotech Ltd
513.80
-154.75
-23.15%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 19, 2026