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

• Market Cap: ₹8.26B
• Dividend Yield: N/A
• Average Volume (3M): 41.68K
• Price to Earnings (P/E): 36.1
• Beta (1Y): 1.42
• 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: ₹32.00 ▼(-33.87% 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 Recovery

Sustained revenue growth and a higher gross margin indicate improving demand and better cost management across polyester and films. Over 2-6 months this underpins capacity utilization, spreads fixed costs and supports incremental operating leverage as volumes stabilize.

Positive Free Cash Flow

A return to positive free cash flow demonstrates the company's ability to convert earnings into cash, strengthening liquidity. This durable improvement supports debt servicing, targeted capex and potential balance-sheet repair without relying on external financing.

Integrated product portfolio

Vertical integration and diversified end markets (textiles and packaging films) reduce feedstock pass-through risk and enable internal optimization of polyester chips. This structural mix provides pricing and operational flexibility across cycles and supports cross-segment resilience.

Negative Factors

High Leverage

Very high leverage constrains financial flexibility and raises refinancing and interest-rate risk. Over the medium term elevated debt limits capacity to absorb shocks, forces larger interest burdens and prioritizes cash for creditors over reinvestment or strategic initiatives.

Thin Profitability

Persistently low operating and net margins leave limited buffer against raw-material swings or pricing pressure. Structurally thin profitability reduces retained earnings growth, hampers ROE improvement and makes deleveraging and capital allocation more difficult.

Volatile cash-flow history

Although FCF is positive now, prior negative cash flows show volatility in cash generation. This inconsistency complicates multi-period planning, raises execution risk for debt reduction and capex, and means recent improvement may be fragile without structural change.

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

INDORAMA primarily makes money by manufacturing and selling synthetic polymer-based products across two main business lines: (1) polyester intermediates and textiles (PSF, POY, DTY, and polyester chips) and (2) packaging films (BOPP films). Revenue is generated through sales volumes multiplied by realizations (selling prices) for each product category to downstream industrial customers. In the polyester segment, polyester chips are sold as an intermediate feedstock and also consumed internally to produce fibres and yarns; PSF is typically sold to spinners and nonwoven/filling applications, while POY and DTY are sold to textile processors for fabric production. In the BOPP films segment, the company sells film grades used by converters and packaging companies for lamination, printing, and labeling applications. Earnings are influenced by product mix, capacity utilization, and the spread between polymer/feedstock input costs and finished-product selling prices. Specific details on major customers, long-term offtake agreements, or named strategic partnerships are null.

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	48.90B	42.59B	36.96B	39.33B	40.38B	20.43B
Gross Profit	10.65B	9.03B	3.95B	493.60M	5.08B	5.84B
EBITDA	3.07B	1.79B	-327.10M	662.00M	3.02B	1.03B
Net Income	1.42B	14.00M	-2.03B	-245.60M	2.69B	1.13B
Balance Sheet
Total Assets	29.71B	29.36B	29.07B	27.13B	21.05B	17.11B
Cash, Cash Equivalents and Short-Term Investments	82.90M	300.40M	293.70M	614.00M	123.20M	93.80M
Total Debt	10.94B	11.36B	13.39B	8.90B	3.58B	3.95B
Total Liabilities	25.26B	25.67B	25.39B	21.40B	15.06B	13.78B
Stockholders Equity	4.46B	3.68B	3.68B	5.73B	5.99B	3.33B
Cash Flow
Free Cash Flow	814.70M	3.52B	-3.57B	-4.46B	1.20B	1.56B
Operating Cash Flow	914.60M	3.91B	-967.30M	-809.90M	2.00B	1.82B
Investing Cash Flow	-53.30M	-363.40M	-2.58B	-3.48B	-754.40M	-175.00M
Financing Cash Flow	-1.06B	-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 33.88, above the 50-day MA of 38.18, and below the 200-day MA of 49.52, indicating a bearish trend. The MACD of -1.99 indicates Negative momentum. The RSI at 31.07 is Neutral, neither overbought nor oversold. The STOCH value of 24.01 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	₹8.01B	22.24	―	1.23%	0.69%	-7.54%
TNPL	58 Neutral	₹8.87B	36.69	―	2.08%	4.65%	-127.24%
ESTER	56 Neutral	₹8.64B	-20.11	―	0.56%	16.82%	―
INDORAMA	52 Neutral	₹8.26B	36.11	―	―	30.79%	―
FAIRCHEMOR	46 Neutral	₹5.85B	-2,425.33	―	1.07%	-22.10%	-85.56%
OAL	46 Neutral	₹8.06B	-127.17	―	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.