News ArticleFine Organic Industries Posts 22.1% Revenue Rise and 40.1% Profit Growth in Q2 FY27
Company completes acquisition of 80% stake in Oleofine Organics Malaysia and infuses ₹55 crore equity in SEZ subsidiary
Fine Organic Industries Limited announced a 22.1% revenue increase to ₹729.4 crore and a 40.1% rise in profit after tax to ₹152.1 crore for Q2 FY27, driven by stable demand and strategic acquisitions including an 80% stake in Malaysia's Oleofine Organics. The company also infused ₹55 crore equity into its SEZ subsidiary and received an insurance claim settlement related to a past fire incident.
Fine Organic Industries Limited
General / Other
Fine Organic Industries Limited reported strong financial results for the quarter ended September 30, 2026, with consolidated revenue reaching ₹729.4 crore, a 22.1% increase year-over-year, and profit after tax rising by 40.1% to ₹152.1 crore. The company advanced its growth strategy with the acquisition of an 80% stake in Malaysia's Oleofine Organics and additional equity infusion into its SEZ subsidiary.
The company's consolidated revenue for the half year ended September 2026 was ₹1,423.6 crore, up 20.1% compared to the same period last year, with EBITDA improving by 39.5% to ₹360.9 crore and EBITDA margin expanding to 25.4%. PAT margin increased to 20.4% for H1 FY27.
Exports accounted for approximately 58% of total revenue in H1 FY27, indicating strong international demand, while domestic sales made up 42%. The operating environment saw substantial raw material price increases in H1 FY27 compared to the previous year, with marginal increases in Q2 FY27 versus Q1 FY27.
Fine Organic Industries injected ₹55 crore in equity into its wholly owned subsidiary Fine Organic Industries (SEZ) Pvt. Ltd. during Q2 FY27, bringing total investment in the entity to ₹247.5 crore. The Board also approved an additional ₹120 crore equity infusion for ongoing projects in the SEZ.
In a strategic move, Fine Organic acquired an 80% stake in Oleofine Organics Sdn. Bhd. of Malaysia for ₹80.17 crore (RM 34,208,000), finalized on September 9, 2026. The acquisition aligns with the company's growth plans in specialty chemicals.
Following this acquisition, Fine Organic and Oleofine now control over 53% voting power in Fine Organic Industries (Thailand) Co., Ltd., making it a subsidiary under the Companies Act, 2013. FOIT operates within the core specialty chemicals business line of Fine Organic Industries Limited.
Highlights
- Q2 FY27 revenue of ₹729.4 crore, up 22.1% year-over-year.
- Q2 FY27 EBITDA reached ₹184.9 crore, a 36.8% increase versus Q2 FY26.
- Profit after tax in Q2 FY27 rose 40.1% to ₹152.1 crore.
- Exports contributed approximately 56% of revenue in Q2 FY27.
- Fine Organic invested ₹55 crore more equity in its SEZ subsidiary during Q2 FY27.
- Acquisition of 80% of Oleofine Organics Malaysia completed at ₹80.17 crore on September 9, 2026.
Key Data Snapshot
What happened
- Fine Organic Industries announced its unaudited financial results for Q2 and H1 FY27 ended September 30, 2026.
- The company reported a 22.1% increase in revenue and a 40.1% rise in profit after tax for Q2 FY27 compared to Q2 FY26.
- It completed acquisition of an 80% stake in Oleofine Organics Sdn. Bhd., Malaysia, in line with its growth strategy.
- Additional equity infusion of ₹55 crore was made in the subsidiary Fine Organic Industries (SEZ) Pvt. Ltd. during Q2 FY27.
Key details
- Consolidated revenue for H1 FY27 stood at ₹1,423.6 crore, a 20.1% increase year-over-year.
- EBITDA margin improved to 25.4% in Q2 FY27 from 22.6% in Q2 FY26.
- Exports accounted for approximately 56-58% of revenue in Q2 and H1 FY27, with domestic sales comprising the remainder.
- Raw material prices rose substantially in H1 FY27 compared to H1 FY26, with marginal increases quarter-over-quarter.
- Utility and freight costs increased significantly in H1 FY27 due to geopolitical tensions impacting fuel and logistics prices.
Transaction details
- The Oleofine Organics acquisition was completed on September 9, 2026, for RM 34,208,000 (₹80.17 crore).
- This acquisition made Fine Organic Industries and Oleofine majority stakeholders controlling over 53% voting power in Fine Organic Industries (Thailand) Co., Ltd., now a subsidiary.
- The acquisition aligns with Fine Organic's strategic growth plans in specialty chemicals.
- The Board has approved a cumulative equity infusion of ₹300 crore in the SEZ subsidiary, of which ₹247.5 crore has been infused to date, with an additional ₹120 crore approved for ongoing projects.
Business impact
- Stable demand contributed to revenue growth during the first half of FY27.
- The acquisition extends Fine Organic's presence in Southeast Asia and broadens its specialty chemicals portfolio.
- Insurance claims related to a 2024 fire incident at the Badlapur plant were settled, with a final property and inventory claim of ₹4.35 crore received in July 2026.
- Cost pressures from increased raw material, fuel, and freight expenses affected operating expenses but were somewhat stabilized in Q2 FY27.
Background and context
- Fine Organic Industries is India's largest manufacturer of oleochemical-based additives with over 600 products used in food, polymer, cosmetics, coatings, and other industries.
- The company operates state-of-the-art manufacturing facilities in Maharashtra and maintains a strong domestic and global distribution network.
- The SEZ subsidiary plays a critical role in ongoing expansion projects, supported by significant equity infusions approved by the Board.
Highlights
- Q2 FY27 revenue of ₹729.4 crore, up 22.1% year-over-year.
- Q2 FY27 EBITDA reached ₹184.9 crore, a 36.8% increase versus Q2 FY26.
- Profit after tax in Q2 FY27 rose 40.1% to ₹152.1 crore.
- Exports contributed approximately 56% of revenue in Q2 FY27.
- Fine Organic invested ₹55 crore more equity in its SEZ subsidiary during Q2 FY27.
- Acquisition of 80% of Oleofine Organics Malaysia completed at ₹80.17 crore on September 9, 2026.
Disclosures
- SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
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