Ester Filmtech Limited reports ₹228.33 crore H1 liquidity

Ester Filmtech Limited reported ₹228.33 crore of consolidated cash, bank balances and liquid investments at 30 September 2026, the end of H1 FY27. The position included ₹180.40 crore of closing cash and bank balances and ₹47.93 crore of investments, despite a ₹66.69 crore working-capital cash outflow during the half year.

How did Ester Filmtech reach ₹228.33 crore of liquidity?

Ester Filmtech reached ₹228.33 crore of consolidated cash and liquid investments at 30 September 2026, comprising ₹180.40 crore of closing cash and bank balances and ₹47.93 crore of investments in hand. The ₹180.40 crore closing balance reconciles with the balance sheet's ₹32.25 crore of cash and cash equivalents plus ₹148.15 crore of other bank balances.

The cash-flow statement began H1 FY27 with ₹104.86 crore of cash and bank balances and ₹54.57 crore of investments as at 1 April 2026. Those opening liquid resources, together with ₹33.41 crore of profit before tax and ₹36.30 crore of depreciation, produced a stated ₹229.14 crore subtotal before the separately listed financing inflows and cash applications.

The composition changed over the six months: cash and bank balances rose by ₹75.54 crore, while investments in hand fell by ₹6.64 crore. Combined liquidity therefore increased by ₹68.90 crore, with a greater share held as cash and bank balances at the September 2026 close.

The balance sheet classifies the ₹47.93 crore investment balance as a current financial asset, compared with ₹54.57 crore at FY26. Ester Filmtech also held ₹29.71 crore of non-current investments at H1 FY27, up from ₹23.79 crore at FY26, but these are not included in the cash-flow statement's stated ₹228.33 crore of cash, bank balances and liquid investments.

What absorbed Ester Filmtech's cash in H1 FY27?

Ester Filmtech's largest disclosed cash application in H1 FY27 was a ₹66.69 crore change in working capital, classified as an operating activity. The cash-flow statement also records ₹53.52 crore of term-loan repayments, ₹15.09 crore of capitalisation of fixed assets, ₹7.10 crore invested in the joint venture, ₹7.09 crore of tax paid and ₹2.51 crore of dividend payment.

The ₹66.69 crore working-capital outflow was larger than the ₹33.41 crore profit before tax shown as an operating cash source and the ₹36.30 crore depreciation charge. It was a material cash use during a half year in which Ester Filmtech reported ₹327.80 crore of total income and ₹36.40 crore of earnings before interest, tax, depreciation and amortisation, or EBITDA.

Fixed-asset capitalisation of ₹15.09 crore was recorded alongside a decline in property, plant and equipment to ₹951.56 crore at H1 FY27 from ₹977.52 crore in FY26. Capital work-in-progress increased to ₹38.70 crore from ₹36.18 crore, while the cash-flow statement classifies fixed-asset capitalisation as an investing activity rather than a working-capital movement.

How did receivables and inventory change at Ester Filmtech?

Ester Filmtech's current assets increased to ₹790.37 crore at H1 FY27 from ₹606.30 crore in FY26, with trade receivables rising to ₹264.31 crore from ₹184.94 crore and inventories rising to ₹245.17 crore from ₹208.71 crore. These two items rose by ₹79.37 crore and ₹36.46 crore respectively alongside the reported working-capital outflow.

The receivables increase occurred as H1 FY27 total income reached ₹327.80 crore, up from ₹217.80 crore in H1 FY26, while sales volume rose to 20,112 metric tonnes from 18,366 metric tonnes. The presentation attributes improved operating performance to higher exports, better domestic and overseas margins, and a higher proportion of value-added and specialty films; it does not allocate the receivables increase by customer, geography or product category.

Current liabilities also grew, reaching ₹535.60 crore at H1 FY27 versus ₹435.27 crore in FY26. Trade payables due to parties other than micro, small and medium enterprises, or MSMEs, increased to ₹76.19 crore from ₹48.43 crore, MSME dues rose to ₹24.92 crore from ₹18.10 crore, and short-term borrowings increased to ₹389.47 crore from ₹338.29 crore.

Other current assets declined slightly to ₹50.12 crore at H1 FY27 from ₹51.14 crore at FY26. The presentation provides the aggregate ₹66.69 crore working-capital cash-flow figure but does not provide a line-by-line reconciliation between that movement and each current asset or current liability balance.

How did financing flows alter Ester Filmtech's balance sheet?

Ester Filmtech received ₹79.50 crore from the issue of share warrants, ₹18.90 crore from fresh term loans and ₹51.74 crore from short-term bank borrowings during H1 FY27. Together, these listed financing inflows totalled ₹150.14 crore, while the company repaid ₹53.52 crore of term loans and paid a ₹2.51 crore dividend.

Equity stood at ₹887.63 crore at H1 FY27, compared with ₹782.73 crore in FY26. Equity share capital rose to ₹52.15 crore from ₹48.79 crore, and other equity increased to ₹835.48 crore from ₹733.94 crore; the cash-flow statement separately identifies the ₹79.50 crore warrant issue but does not provide a line-by-line reconciliation of every equity movement.

Borrowings moved in different directions by maturity. Non-current borrowings declined to ₹359.28 crore from ₹390.70 crore, whereas current borrowings increased to ₹389.47 crore from ₹338.29 crore. Total borrowings across those two balance-sheet lines were ₹748.75 crore at H1 FY27, compared with ₹728.99 crore in FY26, despite the reported term-loan repayments.

Conclusion

Ester Filmtech's H1 FY27 position combined ₹228.33 crore of cash, bank balances and liquid investments with a ₹66.69 crore working-capital cash requirement. Receivables and inventories increased to ₹264.31 crore and ₹245.17 crore respectively, while warrant proceeds, fresh term loans and short-term borrowings added listed financing inflows of ₹150.14 crore.

The next disclosures should show execution against management's plan to scale specialty polymers and value-added films, increase plant utilisation, develop sustainable solutions including ELITE, and pursue cost optimisation. H1 FY27 capacity utilisation was 85.3%, compared with 78.4% in H1 FY26, while subsequent reporting can indicate whether higher utilisation is accompanied by changes in working-capital balances and cash generation.