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

• Market Cap: ₹11.29B
• Dividend Yield: N/A
• Average Volume (3M): 41.68K
• Price to Earnings (P/E): 7.6
• Beta (1Y): 1.66
• 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: 50 Neutral
• Price Target: ₹43.00 ▼(-11.14% Downside)

The overall stock score of 50 reflects Indo Rama Synthetics' mixed financial performance and bearish technical indicators. While the company shows recovery in revenue and cash flow, high leverage and low profitability are significant concerns. The technical analysis indicates bearish momentum, and the valuation suggests moderate pricing without a dividend yield to attract income investors.

Positive Factors

Diversified product lines

Indo Rama's dual focus on polyester intermediates/textiles and BOPP packaging films creates durable revenue diversification across industrial end markets. Vertical integration (chips internally used) and exposure to both textiles and packaging reduces single-market cyclicality and supports steadier utilization and cash generation over months.

Revenue recovery trend

A meaningful year-over-year revenue rebound signals improving demand and utilization across product lines. Sustained top-line recovery can unlock operating leverage, supporting margin expansion and stronger cash conversion over a 2–6 month horizon if cost control and capacity utilization remain consistent.

Positive free cash flow

Generating positive free cash flow provides a durable buffer for servicing obligations and funding necessary capex or deleveraging initiatives. A strong operating cash flow to net income ratio indicates cash-quality of earnings, improving financial flexibility and lowering near-term refinancing risk if maintained.

Negative Factors

High leverage

A debt-to-equity ratio above 3 and a low equity ratio indicate material financial leverage that increases interest expense sensitivity and refinancing risk. High leverage constrains strategic flexibility, limits capital allocation to growth, and elevates solvency concerns during cyclical downturns over the coming months.

Weak profitability margins

Very thin net and EBITDA margins mean limited earnings buffer against raw material or pricing shocks. Low profitability restricts internal capital for investment or debt reduction and implies the company remains vulnerable to margin compression, making sustained improvement critical for long-term stability.

Volatile cash flow history

Although 2025 shows positive free cash flow, prior negative FCF indicates volatility in cash generation. This historical inconsistency raises doubts about repeatability, complicates planning for deleveraging or capex, and means cash strength may reverse if market or input-cost conditions shift.

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

Indo Rama Synthetics shows signs of recovery in revenue and cash flow, but profitability remains a concern with low net profit margins and high leverage. The company needs to focus on reducing debt and improving operational efficiency for sustainable growth.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Negative
• RSI: Neutral
• STOCH: Neutral

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 43.07, above the 50-day MA of 46.57, and below the 200-day MA of 50.25, indicating a bearish trend. The MACD of -1.60 indicates Negative momentum. The RSI at 34.99 is Neutral, neither overbought nor oversold. The STOCH value of 28.74 is Neutral, 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	₹8.81B	10.67	―	1.23%	0.69%	-7.54%
TNPL	58 Neutral	₹9.22B	31.15	―	2.08%	4.65%	-127.24%
ESTER	56 Neutral	₹9.33B	192.20	―	0.56%	16.82%	―
INDORAMA	50 Neutral	₹11.29B	7.62	―	―	30.79%	―
FAIRCHEMOR	47 Neutral	₹8.45B	139.43	―	1.07%	-22.10%	-85.56%
OAL	46 Neutral	₹9.65B	98.35	―	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.