Fineotex Chemical Limited has informed the Exchange about Transcript
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Fineotex Chemical reported Q1 FY26 total income of INR 146.22 crores, up about 15% quarter-on-quarter, with EBITDA of INR 25.20 crores (up 18.34% QoQ) and PAT of INR 25.03 crores versus INR 20.13 crores in the previous quarter, a 25% jump. EBITDA margin stood at 18.3% and PAT margin at 18.26%, with ROCI at a strong 30.72%. The company commissioned its new 3 lakh sq ft greenfield plant in Ambernath, adding 15,000 metric tonnes per annum and taking total capacity to around 120,000 MTPA, funded through internal accruals and a fund raise. Revenue mix is roughly 80% textile chemicals with hygiene/FMCG and oil and gas making up the rest, and management said the oil and gas vertical has grown 2.5x sequentially and over 10x year-on-year. The company sits on over INR 360 crores of cash, is debt-free, and is in advanced discussions under NDA for an inorganic acquisition, with management expecting positive news this financial year.
The strong sequential earnings growth, new capacity coming online, and visibility into new verticals like oil and gas are positive signals for shareholders. However, near-term margins are under pressure from higher marketing and expansion costs, with management guiding that a return to historical 24-25% EBITDA margins may take a couple of years. The stock may see a constructive reaction given the order pipeline, cash-rich balance sheet, and acquisition optionality.