Fine Organic Industries Limited , India's largest manufacturer of oleochemical-based additives, has announced its financial results for the quarter and half year ended September 30, 2025, showcasing resilience in a dynamic market environment.

Financial Highlights

The company reported a consolidated revenue from operations of ₹597.30 crore in Q2 FY26, marking a slight increase of 0.2% year-on-year and 1.5% quarter-on-quarter. For the first half of FY26, revenue stood at ₹1,185.70 crore, up 3.5% from the same period last year.

Operational Performance

Exports continued to play a significant role in Fine Organic's business, accounting for 55% of total revenue in both Q2 and H1 FY26. The company reported stable overall demand during H1 FY26, with export markets showing steady performance and domestic demand improving in Q2.

However, the operating environment presented some challenges. Raw material costs increased in H1 FY26 compared to the same period in the previous year, with a slight uptick in Q2 compared to Q1. On a positive note, freight costs remained stable throughout H1 FY26.

Strategic Developments

Fine Organic Industries is making strategic moves to strengthen its position and expand its global footprint:

1. Subsidiary Capitalization: The company's wholly-owned subsidiary, Fine Organic Industries (SEZ) Private Limited, issued Preference Shares amounting to ₹65.00 crore during the quarter, bolstering its equity capital structure.

2. U.S. Expansion: In a significant step towards international growth, Fine Organic incorporated a wholly-owned subsidiary, Fine Organics Americas LLC, in the United States. The company made an equity investment of USD 1.12 million (approximately ₹9.60 crore) in June 2025.

3. Land Acquisition: In July 2025, the company acquired approximately 159.9 acres of land in Jonesville, Union County, South Carolina. This strategic acquisition is aimed at future expansion and enhancing manufacturing capabilities in the United States market.

These initiatives underscore Fine Organic's commitment to global expansion and its efforts to strengthen its position in the international oleochemical-based additives market.

While the company faces challenges such as increased raw material costs and a slight decline in profit margins, its strategic expansions and stable demand in both domestic and export markets position it for potential growth. Investors and industry observers will be keen to watch how these strategic moves translate into financial performance in the coming quarters.

Fine Organic Industries Limited, a leading specialty chemicals manufacturer, has announced its financial results for the second quarter, demonstrating a mixed performance amid challenging market conditions.

Financial Highlights

For the quarter, Fine Organic Industries reported:

The company's consolidated net profit saw a decrease of 7.7% year-over-year, falling from ₹1.17 billion in the same period last year to ₹1.08 billion. Revenue from operations showed a marginal growth of 0.3%, increasing to ₹5.98 billion compared to ₹5.96 billion in the same quarter of the previous year.

EBITDA Performance

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) declined to ₹1.35 billion from ₹1.51 billion in the previous year, representing a 10.6% decrease. Consequently, the EBITDA margin compressed to 22.63% from 25.28%, a reduction of 265 basis points.

Business Outlook

While Fine Organic Industries managed to maintain a slight increase in revenue, the decline in profitability and EBITDA suggests challenges in maintaining operational efficiency or managing costs effectively. The company may need to focus on cost optimization and operational improvements to enhance its profit margins in the coming quarters.

The mixed results highlight the complex market dynamics facing the specialty chemicals sector, with companies like Fine Organic Industries navigating fluctuating input costs, market demand, and competitive pressures.