NewsEarningsFineotex Chemical Reports Mixed Q2 Results with Revenue Decline and EBITDA ContractionFineotex Chemical Reports Mixed Q2 Results with Revenue Decline and EBITDA Contraction
Fineotex Chemical Limited reported mixed Q2 FY2025-26 results. Revenue decreased 6.67% YoY to ₹1,400.00 crore but increased 2.14% QoQ. Net profit fell 18.37% YoY to ₹260.00 crore, yet rose 3.88% QoQ. EBITDA declined 14.81% YoY to ₹310.00 crore but improved 23.02% QoQ. EBITDA margin contracted 244 bps YoY to 22.53% while expanding 415 bps QoQ. The company faces challenges in reversing YoY declines despite showing sequential improvements.
*this image is generated using AI for illustrative purposes only.
Fineotex Chemical Limited , a specialty chemicals company, has reported a mixed set of financial results for the second quarter. The company experienced a decline in revenue and profitability compared to the same period last year, while showing some improvement on a sequential basis.
Key Financial Highlights
| Metric | Q2 FY2025-26 | Q2 FY2024-25 | YoY Change | Q1 FY2025-26 | QoQ Change |
|---|---|---|---|---|---|
| Revenue | 1,400.00 | 1,500.00 | -6.67% | 1,370.70 | 2.14% |
| Net Profit | 260.00 | 318.50 | -18.37% | 250.30 | 3.88% |
| EBITDA | 310.00 | 363.90 | -14.81% | 252.00 | 23.02% |
| EBITDA Margin | 22.53% | 24.97% | -244 bps | 18.38% | 415 bps |
Revenue and Profitability
Fineotex Chemical's consolidated revenue for Q2 declined to ₹1,400.00 crore, down 6.67% from ₹1,500.00 crore in the same quarter of the previous fiscal year. However, on a quarter-on-quarter basis, the company saw a modest improvement of 2.14% from ₹1,370.70 crore in Q1.
The company's net profit for the quarter stood at ₹260.00 crore, representing an 18.37% decrease from ₹318.50 crore reported in Q2 of the previous year. Sequentially, net profit improved by 3.88% from ₹250.30 crore in the previous quarter.
EBITDA and Margin Performance
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q2 was ₹310.00 crore, down 14.81% year-over-year from ₹363.90 crore. However, the company showed significant improvement on a quarter-on-quarter basis, with EBITDA increasing by 23.02% from ₹252.00 crore in Q1.
The EBITDA margin contracted to 22.53% in Q2, compared to 24.97% in the same quarter last year, representing a decline of 244 basis points. Despite the year-over-year contraction, the company managed to improve its EBITDA margin by 415 basis points sequentially from 18.38% in Q1.
Conclusion
Fineotex Chemical's Q2 results present a mixed picture, with year-over-year declines in key financial metrics but sequential improvements. The company will likely need to focus on strategies to boost revenue growth and operational efficiency to reverse the trend of declining profitability. Investors and analysts may look for further guidance from the management on the company's plans to navigate the current market conditions and improve its financial performance in the coming quarters.
Historical Stock Returns for Fineotex Chemical
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.29% | -3.47% | -4.80% | +0.08% | -30.93% | +459.72% |
15
