FCL Fineotex Q2 revenue rises 182% as EBITDA margin falls

FCL Fineotex reported Q2 FY27 revenue from operations of Rs 387.65 crore, up 181.51% year on year, while EBITDA margin declined to 15.37% from 22.53%. The consolidated scale-up lifted revenue and absolute profit, but gross margin, EBITDA margin and profit-after-tax margin each fell from the comparable quarter.

Why did FCL Fineotex’s Q2 FY27 revenue increase so sharply?

FCL Fineotex’s revenue from operations increased by Rs 249.94 crore from Q2 FY26 to Q2 FY27, reaching Rs 387.65 crore from Rs 137.71 crore. Management attributed the Q2 performance to a significant scale-up in consolidated operations and continued business momentum. Total revenue, including other income, rose 169.15% to Rs 391.41 crore, even as other income declined to Rs 3.76 crore from Rs 7.72 crore a year earlier.

The increase also extended from the preceding quarter. Revenue from operations was Rs 376.63 crore in Q1 FY27, making Q2 FY27 revenue Rs 11.02 crore higher sequentially. Management reported 132.3% growth in consolidated business volumes for H1 FY27, providing its stated operational context for the revenue increase in the first six months.

How did FCL Fineotex’s Q2 profits compare across periods?

FCL Fineotex’s Q2 FY27 EBITDA, or earnings before interest, tax, depreciation and amortisation, rose to Rs 59.59 crore from Rs 31.03 crore in Q2 FY26, but was only Rs 0.45 crore above Q1 FY27. Profit after tax, or PAT, reached Rs 44.55 crore, up from Rs 26.08 crore a year earlier but below Rs 48.21 crore in the preceding quarter.

FCL Fineotex’s year-on-year growth rate declined at each lower level of the income statement. Revenue from operations grew 181.51%, gross profit increased 115.06%, EBITDA rose 92.04%, and PAT increased 70.83%. The sequence corresponds with a higher Q2 FY27 cost base, although gross profit, EBITDA and PAT all remained above their Q2 FY26 amounts.

Why did FCL Fineotex’s margins decline in Q2 FY27?

FCL Fineotex’s gross margin fell 9.07 percentage points year on year to 29.38% in Q2 FY27, from 38.45% in Q2 FY26. Cost of raw materials increased to Rs 273.78 crore from Rs 84.76 crore, while gross profit increased by Rs 60.92 crore to Rs 113.87 crore. Gross margin was also below the 35.42% reported in Q1 FY27.

FCL Fineotex’s EBITDA margin declined by 7.16 percentage points to 15.37% from 22.53% a year earlier. Employee benefit expenses were Rs 29.44 crore against Rs 6.52 crore in Q2 FY26, while other expenses rose to Rs 24.84 crore from Rs 15.41 crore. Compared with Q1 FY27, other expenses declined from Rs 47.42 crore, but gross profit fell by Rs 19.53 crore.

FCL Fineotex’s PAT margin was 11.49% in Q2 FY27, compared with 18.94% in Q2 FY26 and 12.80% in Q1 FY27. Depreciation and amortisation increased to Rs 4.65 crore from Rs 3.01 crore, while finance cost increased to Rs 1.68 crore from Rs 0.34 crore. Tax expense was Rs 12.48 crore, compared with Rs 9.32 crore a year earlier.

What does FCL Fineotex’s H1 FY27 performance show?

FCL Fineotex reported H1 FY27 revenue from operations of Rs 764.28 crore, compared with Rs 274.78 crore in H1 FY26, while total revenue rose 166.8% to Rs 778.13 crore. EBITDA more than doubled to Rs 118.74 crore from Rs 56.23 crore, and PAT increased 81.5% to Rs 92.75 crore from Rs 51.10 crore. The six-month result therefore combined higher absolute earnings with lower margins.

FCL Fineotex’s H1 FY27 gross margin was 32.35%, down from 35.99% in H1 FY26, while EBITDA margin was 15.54%, down from 20.46%. PAT margin fell to 12.14% from 18.60%. Q2 gross margin of 29.38% was below the H1 result because Q1 FY27 gross margin was 35.42%, while Q2 EBITDA margin of 15.37% was close to Q1’s 15.70%.

FCL Fineotex’s annual figures show a similar margin movement before FY27. Revenue from operations increased to Rs 772.23 crore in FY26 from Rs 533.33 crore in FY25, but EBITDA margin decreased to 17.45% from 23.85%, and PAT margin declined to 16.19% from 20.48%. H1 FY27 EBITDA margin of 15.54% and PAT margin of 12.14% were below the respective FY26 annual figures.

What do FCL Fineotex’s balance-sheet and efficiency figures indicate?

FCL Fineotex reported total assets of Rs 1,244.35 crore as of 30 September 2026, compared with Rs 1,159.22 crore as of 31 March 2026. Current assets increased to Rs 672.80 crore from Rs 575.11 crore. Inventories rose to Rs 203.41 crore from Rs 154.61 crore, and trade receivables increased to Rs 319.31 crore from Rs 290.29 crore.

FCL Fineotex’s shareholders’ funds rose to Rs 1,048.46 crore at 30 September 2026 from Rs 939.73 crore at 31 March 2026, while total current liabilities declined to Rs 182.01 crore from Rs 205.30 crore. The company reported working capital of 88 days for Q2 FY27, return on invested capital of 36.12%, and return on capital employed of 24.51%.

Conclusion

FCL Fineotex’s Q2 and H1 FY27 figures show that consolidated scale-up delivered substantially higher revenue and absolute profit than in the comparable periods. However, Q2 revenue growth of 181.51% did not translate proportionately into profitability, as gross margin, EBITDA margin and PAT margin were below Q2 FY26 and, in most cases, Q1 FY27.

The next reporting periods will indicate whether FCL Fineotex can sustain revenue near the Rs 387.65 crore reported in Q2 FY27 while altering the cost relationship that reduced gross margin to 29.38%. Management said its focus is on strengthening global presence, enhancing operational capabilities and building on its expanded business platform; margins, working-capital days, inventories and receivables are disclosed measures to watch alongside that plan.