Fine Organic Industries Limited (FINEORG) Q2 FY27 Financial Results: PAT ₹138.1 Cr & Revenue ₹694.2 Cr

Investor Takeaways

• Revenue reached ₹694.2 crores, up 18% YoY from ₹588.4 crores in Q1FY26
• EBITDA increased 42.4% YoY to ₹176 crores, with margin expanding to 25.3%
• PAT grew 18% YoY to ₹138.1 crores, and EPS stood at ₹45.06
• ⚠️ Elevated raw material costs and higher utility expenses due to geopolitical tensions noted

Overall Tone: Neutral

Key Financial Highlights

What Changed

The company demonstrated robust top-line growth of 18% YoY in Q1FY27, reaching ₹694.2 crores, supported by stable domestic demand and export performance. EBITDA surged 42.4% YoY to ₹176 crores, reflecting improved operational efficiency and margin expansion to 25.3%. Net profit increased 18% YoY to ₹138.1 crores, aligning with revenue growth and cost management measures. Earnings per share (EPS) rose to ₹45.06, indicating improved profitability per share. The company finalized a ₹4.35 crore insurance settlement related to the Badlapur plant incident, which contributed to financial recovery. However, the filing highlighted ongoing challenges from elevated raw material costs and increased utility expenses due to geopolitical tensions, which may impact future margins. The investor release is accessible via the company’s official website.

Peer Comparison

Fine Organic Industries trades at a P/E ratio of 33.18, which is lower than Solar Industries (132.27) and Pidilite (75.73), but higher than SRF (69.51). The company’s market capitalization of ₹14,199.55 crores positions it as a mid-to-large cap player in the chemicals sector. Peer companies show varied valuation multiples, with Solar Industries commanding the highest P/E, suggesting market expectations of higher future growth.

Risks & Concerns

• ⚠️ Elevated raw material costs and higher utility expenses due to geopolitical tensions
• Potential operational or reputational impact from past incidents, though mitigated by insurance settlement
• No specific regulatory or compliance risks mentioned in the filing

Quarterly Trend

The company’s revenue in Q1FY27 (₹694.2 crores) shows a significant increase compared to the same quarter in the previous fiscal year and sequential growth from Q4FY24. Net profit and OPM also reflect strong performance, with margin expansion observed over the last four quarters. The upward trend in profitability suggests improving operational efficiency, although raw material inflation remains a monitoring point.

CRITICAL: If quarterly trend data is not provided in the context, do NOT include the Quarterly Trend section at all. Never fabricate quarterly numbers.