Indo Rama Synthetics (India) Limited (INDORAMA) AI Stock Analysis

• Market Cap: ₹9.00B
• Dividend Yield: N/A
• Average Volume (3M): 41.68K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 1.57
• Revenue Growth: 30.79%
• EPS Growth: N/A
• Country: IN
• Employees: 1,443
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.34
• Shares Outstanding: 261,113,160
• 10 Day Avg. Volume: 32,696
• 30 Day Avg. Volume: 41,681
• PEG Ratio: -6.90
• Price to Book (P/B): 2.64
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 2.76
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: ₹37.00 ▼(-23.54% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven by a mixed financial picture: improving revenue and a return to positive free cash flow are supportive, but very weak profitability and high leverage materially raise risk. Technically, the stock is in a clear downtrend and remains oversold, which weighs on the near-term outlook. Valuation is a modest offset due to the low P/E.

Positive Factors

Revenue Growth

A 15.23% revenue increase signals improving demand and/or higher utilization across polyester and BOPP segments. Sustained top-line momentum supports operating leverage, gives management room to deleverage or reinvest in capacity, and underpins longer-term cash generation if margins hold.

Improved Gross Margin

A 21.2% gross margin indicates progress in feedstock management, pricing pass-through, or productivity gains. Durable improvement at the gross level helps the firm better absorb commodity swings and supports the pathway to stronger operating margins, assuming mix and input trends remain favorable.

Positive Free Cash Flow / Cash Generation

Positive FCF of 3.52B marks a structural improvement in cash conversion versus prior years. Reliable cash generation reduces refinancing urgency, enables targeted debt paydown or capex, and increases resilience to cyclical downturns if management sustains operating discipline and working-capital control.

Negative Factors

High Leverage

A debt-to-equity ratio above 3x and low equity ratio materially constrain financial flexibility. High leverage raises refinancing and interest-rate vulnerability, limits ability to invest or absorb shocks, and makes sustainable deleveraging essential to reduce default and liquidity risk over the medium term.

Very Thin Profitability

Margins this thin leave little buffer for input-cost inflation or demand softness. Low EBITDA and net margins impair internal accruals needed for capex and debt reduction, reduce return on capital, and mean modest revenue growth may not translate into durable profit improvement without structural cost or mix gains.

Volatile Financial Track Record

A history of negative cash flows followed by a recent positive FCF suggests earnings and cash are cyclical and unstable. Such volatility complicates multi-quarter planning, raises execution risk for deleveraging plans, and means gains could reverse if market or input conditions deteriorate.

Indo Rama Synthetics (India) Limited Business Overview & Revenue Model

Company Description

Indo Rama Synthetics (India) Limited manufactures and supplies polyester in India. The company offers various polyester products, including polyester staple fiber, polyester filament yarn, draw texturized yarn, fully drawn yarn, and polyester chips. Its products are used in various applications, such as apparel and sportswear, home furnishings and textiles, hygiene and non-woven, and automotive. The company also operates in the Middle East and North Africa, Turkey, Brazil, Argentina, Mexico, Columbia, Germany, Belgium, Portugal, Spain, Poland, Italy, Bangladesh, and Nepal. Indo Rama Synthetics (India) Limited was incorporated in 1986 and is based in Gurugram, India.

How the Company Makes Money

Indo Rama Synthetics generates revenue primarily through the sale of its synthetic textile products, including polyester staple fibers and filament yarns. The company's revenue model is based on bulk production and distribution, allowing it to supply both domestic and international markets. Key revenue streams include direct sales to textile manufacturers and wholesalers, who use these materials in their own production processes. Additionally, INDORAMA benefits from strategic partnerships with major players in the textile industry, enhancing its market reach and operational efficiency. Factors contributing to its earnings include the increasing demand for synthetic textiles, cost-effective production capabilities, and a strong focus on sustainable manufacturing practices.

Indo Rama Synthetics (India) Limited Financial Statement Overview

Summary

Financials show recovery but remain fragile. Revenue rose 15.23% and gross margin improved to 21.2%, while free cash flow turned positive (3.52B). Offsetting this, profitability is extremely thin (net margin 0.03%, EBITDA margin 4.2%) and leverage is high (debt-to-equity 3.09; equity ratio 12.5%).

Income Statement

Indo Rama Synthetics shows mixed performance in its income statement. The company experienced a significant recovery in revenue from 2024 to 2025, with a revenue growth rate of 15.23%. Gross profit margin improved to 21.2% in 2025, indicating better cost management. However, the net profit margin remains weak at 0.03% in 2025, primarily due to past losses and fluctuating EBIT margins. The EBITDA margin of 4.2% shows limited operating efficiency, highlighting the need for further profitability improvement.

Balance Sheet

The balance sheet indicates high leverage with a debt-to-equity ratio of 3.09 in 2025, which poses financial risk. The equity ratio is low at 12.5%, suggesting potential vulnerability in financial stability. Return on Equity (ROE) improved to 0.38% due to a small net income, but still remains low. The company must focus on reducing debt levels and improving equity to enhance financial stability.

Cash Flow

Cash flow analysis reveals a substantial improvement with positive free cash flow of 3.52 billion in 2025. The operating cash flow to net income ratio is strong, reflecting effective cash generation from operations. However, the free cash flow growth rate is not calculable due to negative values in previous years, indicating a volatile cash flow history. Continued focus on maintaining positive cash flows is essential for financial health.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	46.20B	42.59B	36.96B	39.33B	40.38B	20.43B
Gross Profit	10.00B	9.03B	3.95B	493.60M	5.08B	5.84B
EBITDA	2.42B	1.79B	-327.10M	662.00M	3.02B	1.03B
Net Income	734.30M	14.00M	-2.03B	-245.60M	2.69B	1.13B
Balance Sheet
Total Assets	0.00	29.36B	29.07B	27.13B	21.05B	17.11B
Cash, Cash Equivalents and Short-Term Investments	422.50M	300.40M	293.70M	614.00M	123.20M	93.80M
Total Debt	0.00	11.36B	13.39B	8.90B	3.58B	3.95B
Total Liabilities	-3.68B	25.67B	25.39B	21.40B	15.06B	13.78B
Stockholders Equity	3.68B	3.68B	3.68B	5.73B	5.99B	3.33B
Cash Flow
Free Cash Flow	0.00	3.52B	-3.57B	-4.46B	1.20B	1.56B
Operating Cash Flow	0.00	3.91B	-967.30M	-809.90M	2.00B	1.82B
Investing Cash Flow	0.00	-363.40M	-2.58B	-3.48B	-754.40M	-175.00M
Financing Cash Flow	0.00	-3.54B	3.22B	4.79B	-1.23B	-1.74B

Indo Rama Synthetics (India) Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 48.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:INDORAMA, the sentiment is Negative. The current price of 48.39 is above the 20-day moving average (MA) of 38.30, above the 50-day MA of 42.37, and below the 200-day MA of 50.33, indicating a bearish trend. The MACD of -2.14 indicates Positive momentum. The RSI at 29.17 is Positive, neither overbought nor oversold. The STOCH value of 14.88 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:INDORAMA.

Indo Rama Synthetics (India) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
JAYAGROGN	60 Neutral	₹8.39B	11.82	―	1.23%	0.69%	-7.54%
TNPL	58 Neutral	₹9.21B	31.12	―	2.08%	4.65%	-127.24%
ESTER	56 Neutral	₹9.83B	-29.50	―	0.56%	16.82%	―
INDORAMA	52 Neutral	₹9.00B	6.56	―	―	30.79%	―
FAIRCHEMOR	47 Neutral	₹7.43B	314.67	―	1.07%	-22.10%	-85.56%
OAL	46 Neutral	₹8.75B	1,172.45	―	0.17%	12.25%	-74.52%

Indo Rama Synthetics (India) Limited Corporate Events

Indo Rama Synthetics Clears Q3 Results and Reshapes Board, Audit Committee

Indo Rama Synthetics (India) Limited’s board met on 31 January 2026 and approved the unaudited standalone and consolidated financial results for the third quarter and nine months ended 31 December 2025, along with noting unmodified limited review reports from its statutory auditors. The company will publish extracts of these results and has also announced significant board and governance changes, including the resignations of non-executive director Dilip Kumar Agarwal and whole-time director Sanjay Thapliyal, the appointments of Vipin Kumar as a non-executive non-independent additional director and Sanjay Gupta as an executive additional director, revised authorisation of key managerial personnel for regulatory disclosures, and the reconstitution of the audit committee to reflect the new board composition.

India Ratings Revises Indo Rama Synthetics’ Outlook to Stable, Affirms Bank Loan Ratings

India Ratings and Research, part of the Fitch Group, has revised the outlook on Indo Rama Synthetics (India) Limited’s existing bank loan facilities totaling INR 16,200 million to Stable from Negative, while affirming the ratings at IND A- for long-term and IND A2+ for short-term instruments. In addition, a new INR 1,000 million bank loan facility has been assigned the same IND A-/Stable and IND A2+ ratings, signaling an improvement in the agency’s view of the company’s credit profile and funding stability, which may support Indo Rama’s access to bank financing and bolster confidence among lenders and other financial stakeholders.

Indo Rama Synthetics Reports No Re-Lodgement Requests for Physical Share Transfers

Indo Rama Synthetics (India) Limited has informed the stock exchanges that, pursuant to a SEBI circular providing a special window for re-lodgement of transfer requests for physical share certificates, it did not receive any such requests from shareholders during November and December 2025 and up to 6 January 2026. The company’s registrar and share transfer agent, MCS Share Transfer Agent Limited, confirmed that there were zero requests received, processed, approved or rejected in the relevant period, indicating that shareholders have largely transitioned away from physical share transfers or had no pending issues requiring re-lodgement under this special regulatory window.

Indo Rama Synthetics Receives GST Demand Order of Over Rs 1 Crore for FY 2022

Indo Rama Synthetics (India) Limited has disclosed that it has received an order from the Maharashtra Goods and Service Tax Department, Office of the Deputy Commissioner of State Tax in Nagpur, determining dues under Section 73 of the MGST/CGST Act, 2017. The order, received on 29 December 2025, seeks recovery of Rs 1,01,15,356 for financial year 2021-22, covering tax, interest and penalty, arising from alleged discrepancies and unreconciled reverse charge mechanism liability on freight and carriage expenses. The company has stated that the financial impact will depend on the outcome of the ongoing proceedings, indicating potential exposure but no immediate quantified effect on its operations beyond this contingent liability.