India’s polyester yarn sector to grow at 10% in FY25: CARE Ratings

In FY25, the Indian polyester yarn sector is expected to experience a 10 per cent growth, according to CARE Ratings. This growth is likely to be driven by a combination of factors, including the stabilization of product and input prices, easing inflation in major consumer economies, and expected interest rate cuts. Additionally, Care Ratings expects PBILDT margins for polyester yarn players to improve by 150-200 bps, largely due to gross margin expansion.

 Several factors are expected to contribute to this growth in PBILDT margins. These include price stabilization which will benefit manufacturers, a  reduction in inflationary pressure in major consumer economies, expectation of interest rate cuts, which can stimulate economic activity and demand, continued moderate cotton and crude oil prices are also expected to support the industry and restocking of inventories by textile channel partners,

CareEdge also notes that factors like freight rates, container availability, and geopolitical unrest could impact sales growth and profitability.