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

Indo Rama Synthetics (India) Limited

(NSE:INDORAMA)

Select Model

Rating:70Outperform

Price Target:INR 82.00▲(10.41% Upside)

Action:upgraded

Date:09/22/26

The overall score reflects a company in financial recovery, with improving profitability, leverage, and free cash flow offset by a volatile track record and still-meaningful balance sheet and cash flow risks. Strong upward price momentum supports the score but is tempered by overbought technical readings and higher volatility, which raise the chance of short-term corrections. A moderate valuation based on the current P/E ratio reinforces the view of a balanced risk-reward profile rather than a clearly cheap or expensive stock.

Positive Factors

Revenue and Profit RecoveryFY2026 revenue growth accelerated to 40.1% and the company returned to positive operating and net margins after losses in FY2023–FY2024. This recovery indicates stronger operating performance and provides a more durable earnings base if demand and pricing remain supportive.

Negative Factors

Elevated LeverageAlthough leverage improved in FY2026, debt-to-equity of about 2.20x leaves the capital structure debt-heavy. This can pressure resilience during weaker demand or pricing conditions and may limit financial flexibility for investment, working capital, or balance-sheet repair.

Indo Rama Synthetics (India) Limited (INDORAMA) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 25.42B
Dividend Yield: ―
Average Volume (3M): 92.91K
Price to Earnings (P/E): 9.2
Beta (1Y): 1.37
Revenue Growth: -4.69%
EPS Growth: 48.44%
Country: India
Employees: 1,443
Sector: General
Sector Strength: 55
Industry: Manufacturing - Textiles

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

Company Description

Indo Rama Synthetics (India) Limited, founded in 1986 and headquartered in Gurugram, India, specializes in the production and distribution of polyester materials. The company provides a diverse portfolio of polyester products, encompassing polyester...

How the Company Makes Money

INDORAMA makes money primarily by manufacturing and selling polyester-based products, with revenues driven by volumes sold and realized selling prices across its product portfolio. Key revenue streams include: (1) Polyester staple fibre (PSF): sale o...

Indo Rama Synthetics (India) Limited Financial Statement Overview

Summary

Financial performance is solidly above average, reflecting a clear turnaround to positive earnings, better margins, lower leverage, and improving free cash flow, but the history of losses, still-high debt relative to equity, and uneven cash generation keep risk elevated.

Income Statement

74Positive

Balance Sheet

62Positive

Cash Flow

58Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	46.61B	49.10B	42.59B	36.96B	39.33B	40.38B
Gross Profit	10.29B	11.43B	9.03B	3.95B	493.60M	5.08B
EBITDA	3.84B	3.28B	1.79B	-327.10M	662.00M	3.02B
Net Income	2.11B	1.50B	14.00M	-2.03B	-245.60M	2.69B
Balance Sheet
Total Assets	31.32B	32.44B	29.36B	29.07B	27.13B	21.05B
Cash, Cash Equivalents and Short-Term Investments	82.60M	6.77B	300.40M	293.70M	614.00M	123.20M
Total Debt	8.67B	11.40B	11.36B	13.39B	8.90B	3.58B
Total Liabilities	24.75B	27.25B	25.67B	25.39B	21.40B	15.06B
Stockholders Equity	6.57B	5.19B	3.68B	3.68B	5.73B	5.99B
Cash Flow
Free Cash Flow	0	1.10B	3.52B	-3.57B	-4.46B	1.20B
Operating Cash Flow	0	1.34B	3.91B	-967.30M	-809.90M	2.00B
Investing Cash Flow	0	-140.50M	-363.40M	-2.58B	-3.48B	-754.40M
Financing Cash Flow	0	-1.27B	-3.54B	3.22B	4.79B	-1.23B

Indo Rama Synthetics (India) Limited Technical Analysis

Technical Analysis SentimentNeutral

Last Price74.27

Price Trends

50DMA82.68Negative

100DMA66.64Positive

200DMA52.37Positive

Market Momentum

MACD-3.60Positive

RSI36.73Neutral

STOCH8.83Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:INDORAMA, the sentiment is Neutral. The current price of 74.27 is below the 20-day moving average (MA) of 86.55, below the 50-day MA of 82.68, and above the 200-day MA of 52.37, indicating a neutral trend. The MACD of -3.60 indicates Positive momentum. The RSI at 36.73 is Neutral, neither overbought nor oversold. The STOCH value of 8.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:INDORAMA.

Indo Rama Synthetics (India) Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:INDORAMA against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:CENTENKA	74Outperform	INR 9.97B	6.72	―	2.50%	14.88%	145.16%
IN:PASUPTAC	74Outperform	INR 6.07B	6.75	―	―	22.47%	183.02%
IN:INDORAMA	70Outperform	INR 19.11B	9.16	―	―	-4.69%	48.44%
IN:FILATEX	58Neutral	INR 39.54B	21.17	―	0.33%	0.22%	34.33%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:GINNIFILA	53Neutral	INR 3.48B	9.87	―	―	-6.94%	140.06%
IN:RSWM	52Neutral	INR 8.43B	13.60	―	―	-5.08%	―

* General Sector Average

Performance Comparison

IN:INDORAMA and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:INDORAMA	Indo Rama Synthetics (India) Limited	74.27	3.63	5.14%
IN:CENTENKA	Century Enka Limited	439.60	-15.00	-3.30%
IN:FILATEX	Filatex India Ltd	91.14	26.83	41.72%
IN:GINNIFILA	Ginni Filaments Limited.	41.17	-3.68	-8.21%
IN:PASUPTAC	Pasupati Acrylon Limited	71.88	18.43	34.48%
IN:RSWM	RSWM Ltd	186.05	32.20	20.93%

Indo Rama Synthetics (India) Limited Corporate Events

Indo Rama Synthetics Delivers Strong Q2 FY27 Profit and Margin Growth

Oct 16, 2026

Indo Rama Synthetics reported a strong second quarter for FY27, with total income rising to ₹1,344 crore, a 10% year-on-year increase and 43% sequential growth, despite first-half revenue declining 9.7% due to Middle East-related supply chain d...

Indo Rama Synthetics Secures Shareholder Backing for All Resolutions at 40th AGM

Sep 10, 2026

Indo Rama Synthetics (India) Limited has reported that shareholders at its 40th Annual General Meeting, held on 8 September 2026, approved all resolutions in the AGM notice with the requisite majority. The meeting ran from 11:30 a.m. to 12:27 p.m., a...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Sep 22, 2026

Indo Rama Synthetics (India) Limited AI Stock Analysis