Fineotex Chemical reports strong Q2, optimistic outlook for H2 FY2026

Fineotex Chemical Limited (FCL) reported a strong Q2 FY2026 performance with total revenue reaching Rs. 145.43 crores, driven by healthy demand in both domestic and international markets. The company achieved significant profitability improvements, with gross profit increasing to Rs. 52.95 crores, and gross margin expanding by 500 basis points quarter-on-quarter to 38.45%. EBITDA rose by 23.12% sequentially to Rs. 31.03 crores, with EBITDA margins strengthening to 22.53%. Profit After Tax (PAT) increased to Rs. 26.08 crores, translating to a basic EPS of Rs. 2.27 per share.

The company declared an interim dividend of Rs. 0.80 per share on a face value of Rs. 2. FCL also undertook corporate actions to enhance shareholder value, including a bonus issue in a 4:1 ratio and a 1:2 equity share subdivision. While the textile segment faced pressure due to evolving US tariff environments, Fineotex reported strong growth in FMCG and oil and gas segments, with the latter's contribution increasing from 4% in Q1 to 7%-8% in Q2.

Fineotex remains optimistic about H2 FY2026, expecting continued growth and focusing on product development, sustainability-driven innovation, and operational efficiencies. The company is actively reviewing inorganic growth opportunities and anticipates securing maiden orders for AquaStrike from the Indian government in H2.