Fine Organic Industries Limited Q2 profit up 40% to Rs 152.12 crore

Fine Organic reported consolidated net profit of Rs 152.12 crore for the quarter ended September 30, 2026, 40% above a year earlier, as revenue from operations rose 22% to Rs 729.39 crore; capital work-in-progress stood at Rs 170.73 crore at the quarter end.

How did Fine Organic perform in the September 2026 quarter?

Fine Organic recorded higher revenue, profit before tax and net profit in the September 2026 quarter. Revenue from operations was Rs 729.39 crore, compared with Rs 597.29 crore in the September 2025 quarter, while total income increased to Rs 760.03 crore from Rs 618.42 crore. Profit before tax rose to Rs 196.59 crore from Rs 142.02 crore.

Fine Organic’s total expenses rose by Rs 85.64 crore year on year, compared with a Rs 132.10 crore increase in revenue. Cost of materials consumed increased to Rs 426.87 crore from Rs 356.40 crore, employee-benefit expense rose to Rs 44.43 crore from Rs 37.38 crore, and other expenses increased to Rs 86.16 crore from Rs 75.76 crore. Finance costs were Rs 2.11 crore, compared with Rs 43 lakh a year earlier.

Sequentially, Fine Organic’s September-quarter revenue was Rs 35.22 crore above the Rs 694.17 crore recorded in the June 2026 quarter. Net profit increased by Rs 13.98 crore from Rs 138.14 crore, while basic and diluted earnings per share, or EPS, rose to Rs 49.62 from Rs 45.06. The company stated that quarterly EPS is not annualised.

What did Fine Organic report for the six months ended September 2026?

Fine Organic reported six-month revenue from operations of Rs 1,423.56 crore and net profit of Rs 290.26 crore for the period ended September 30, 2026. Revenue was Rs 237.89 crore, or 20%, above the Rs 1,185.67 crore reported in the corresponding 2025 period, while net profit was Rs 64.60 crore, or 29%, higher than Rs 225.66 crore.

Profit before tax for the first six months was Rs 380.14 crore, against Rs 299.37 crore a year earlier. The corresponding prior-period figure included a Rs 6.98 crore exceptional item relating to the final settlement of a business-interruption insurance claim after a January 18, 2024 fire incident at a plant adjacent to Fine Organic’s manufacturing facility. Before that exceptional item, prior-period profit before tax was Rs 292.39 crore.

Fine Organic’s six-month cost of materials consumed rose to Rs 820.28 crore from Rs 717.01 crore, while employee-benefit expenses increased to Rs 91.31 crore from Rs 77.16 crore. Other income declined to Rs 54.39 crore from Rs 60.95 crore. Under Indian Accounting Standard 108, or Ind AS 108, the group reports one primary segment: manufacturing of specialty chemicals.

How much did Fine Organic invest and borrow during the period?

Fine Organic’s capital work-in-progress increased to Rs 170.73 crore at September 30, 2026 from Rs 62.50 crore at March 31, 2026, a rise of Rs 108.23 crore. Property, plant and equipment increased by Rs 50.51 crore to Rs 414.22 crore, while total assets rose to Rs 3,422.94 crore from Rs 2,998.81 crore.

Fine Organic’s cash-flow statement recorded Rs 162.21 crore of payments for property, plant and equipment, intangible assets, capital work-in-progress and capital advances in the six months ended September 30, 2026. This was higher than Rs 39.97 crore in the corresponding 2025 period. The group also reported Rs 80.15 crore of investment in joint ventures and subsidiary companies, while borrowing proceeds were Rs 105 crore, against Rs 9.24 crore a year earlier.

Operating cash flow after income tax paid was Rs 99.75 crore in the six-month period, compared with Rs 163.50 crore a year earlier. Working-capital movements used Rs 198.69 crore, compared with Rs 32.36 crore in the prior period, including a Rs 96.01 crore increase in inventories. Cash and cash equivalents ended September 2026 at Rs 252.56 crore, including Rs 40.77 crore of cash on the acquisition date.

What changed in Fine Organic’s group structure during the quarter?

Fine Organic acquired an 80% equity stake in Oleofine Organics Sdn. Bhd. on September 9, 2026. The transaction also gave Fine Organic an additional indirect controlling interest of 8% in Fine Organic Industries (Thailand) Co. Limited, alongside its existing 45% stake. Both entities became subsidiaries from that date.

Fine Organic accounted for the acquisitions under Ind AS 103, Business Combinations, and consolidated the two entities line by line under Ind AS 110, Consolidated Financial Statements, from September 9 through September 30, 2026. The September 30 balance sheet included non-controlling interest of Rs 37.42 crore, whereas the March 31, 2026 comparative equity balance did not report a non-controlling interest amount.

Fine Organic’s audit committee reviewed the results and its board approved them on November 2, 2026. The statutory auditors issued an unmodified limited-review conclusion. The audit report said one subsidiary reviewed by other auditors had total assets of Rs 409.02 crore at September 30, 2026, while six management-certified subsidiaries reported combined quarterly revenue of Rs 128.05 crore.

Conclusion

Fine Organic combined 22% September-quarter revenue growth with a 40% increase in consolidated net profit to Rs 152.12 crore. For the first half, net profit rose 29% to Rs 290.26 crore, while capital work-in-progress increased by Rs 108.23 crore and total borrowings rose to Rs 154.68 crore from Rs 44.95 crore at March 31, 2026.

The next disclosures to watch are the progression of the Rs 170.73 crore capital work-in-progress balance and the use of borrowings after Rs 105 crore of six-month borrowing proceeds. Fine Organic also disclosed that its wholly owned Fine Organic Industries (SEZ) Private Limited had not commenced operations; management said additional investment in that entity is intended to support the setting up of a manufacturing unit.