1. Warangal rPET capacity doubling - The first 22,500-ton brownfield line at Warangal was commissioned in Q4 FY26 and is ramping up, with a second line due by Q4 FY27 and debottlenecking taking total rPET capacity to \~100,000 tons by end-FY27. That is a 55% capacity increase from today's 64,500 tons, with peak revenue potential of ₹2,300-2,500 crore from the Warangal plant alone.
2. FY27 group EBITDA guidance - Management reaffirmed consolidated FY27 EBITDA guidance of ₹225-250 crore and revenue of ₹1,700-1,800 crore, with growth entirely volume-driven. That implies roughly 40% EBITDA growth over the trailing ₹165 crore, before any benefit from the new rPET lines ramping.
3. rPET demand outstripping supply - rPET demand currently exceeds supply, with the government's 40% recycled-content mandate intact after the MoEF's final March 31, 2026 notification removed regulatory uncertainty. Global and national brand owners have already given commitments for full-year FY27 supply, securing offtake for the expanded capacity.
4. Filament yarn brand qualification - Recycled filament yarn was qualified with a leading global textile brand, with offtake starting February and utilization expected to rise 20-30%. The ramp-up helped subsidiary EBITDA per kg reach ₹24 in Q1 FY27, and volumes are increasing as planned.
5. Value-added fiber mix shift - Management targets raising value-added rPSF products (flame retardant, antimicrobial, hollow conjugated, dyed) to 55-60% of the mix over two years, from roughly 40% today. These premium fibers carry better margins and serve industrial applications like automotive and geotextiles, lifting legacy business EBITDA back to 9-10%.
6. Textile waste feedstock substitution - The legacy business now consumes 20-25% textile industrial waste as feedstock, which is cheaper than PET bottle scrap, with the share potentially rising to 50-55% depending on product. This directly improves input costs in a business that ran at 102% utilization in Q1 FY27.
7. Race Eco Chain sourcing JV - The 49:51 JV with Race Eco Chain, incorporated September 2024, is building washing plants for PET flakes through a nationwide hub-and-spoke model, securing raw material for the expanded rPET capacity. The network already mobilizes \~450 tons of PET waste daily across 300+ suppliers, underpinning the 100,000-ton rPET target.
8. Bottle-grade rPET market entry - The company is undergoing audits with leading FMCG brands to become India's first supplier of bottle-grade chips under the GoRewise brand, with 40+ brand collaborations in progress. This opens the food-grade packaging market, where FSSAI-approved capacity is still scarce relative to the 40% mandate requirement of \~5.5-6 lakh tons.