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Working capital pressure from inventory buildup
View Risks →Fineotex Chemical Limited — Q4 FY26
Fineotex Chemical delivered a stellar Q4 FY26, with revenue surging 162% YoY to ₹314 crore and PAT jumping 118% to ₹44 crore, driven by the December 2025 acquisition of Crude Chem Technologies (CCT) and strong organic textile chemical growth.
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Fineotex Chemical delivered a stellar Q4 FY26, with revenue surging 162% YoY to ₹314 crore and PAT jumping 118% to ₹44 crore, driven by the December 2025 acquisition of Crude Chem Technologies (CCT) and strong organic textile chemical growth. The US oilfield chemicals business contributed ~₹165 crore in Q4, with management confident of scaling to $200 million revenue by FY28 (revised from 2030). Consolidated EBITDA margin stood at 14%, with a target of 18-20% in the near term. The company is doubling CCT's manufacturing capacity and has already deployed $7 million in capex. Textile volumes grew 15% YoY, supported by improving export demand. Risks include working capital pressure (79 days) and global logistics disruptions, though management views these as manageable. The strong balance sheet (₹300+ crore cash) supports further inorganic opportunities.
फाइनोटेक्स केमिकल ने चौथी तिमाही में शानदार प्रदर्शन किया। कंपनी की आय पिछले साल की तुलना में 162% बढ़कर ₹314 करोड़ हो गई, और मुनाफा 118% बढ़कर ₹44 करोड़ पहुंच गया। यह वृद्धि दिसंबर 2025 में क्रूड केम टेक्नोलॉजीज (CCT) को खरीदने और टेक्सटाइल केमिकल के मजबूत कारोबार से हुई। अमेरिकी तेल क्षेत्र के केमिकल कारोबार ने चौथी तिमाही में ₹165 करोड़ का योगदान दिया। कंपनी का लक्ष्य वित्त वर्ष 2028 तक $200 मिलियन का राजस्व हासिल करना है। EBITDA मार्जिन 14% रहा, जिसे जल्द ही 18-20% तक ले जाने की योजना है। कंपनी CCT की उत्पादन क्षमता दोगुनी कर रही है और $7 मिलियन का निवेश कर चुकी है। टेक्सटाइल की बिक्री 15% बढ़ी। जोखिमों में कार्यशील पूंजी का दबाव (79 दिन) और वैश्विक आपूर्ति में रुकावट शामिल है, लेकिन कंपनी के पास ₹300 करोड़ से अधिक नकदी है, जो आगे और अवसरों में मदद करेगी।
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CCT Revenue Contribution
₹165 Cr
+100% QoQ (approx)
Crude Chem contributed ~₹165 crore in Q4 FY26, forming the bulk of the incremental revenue.
International Revenue Share
70%
+20pp YoY (approx)
International revenue share rose to 70% in Q4 FY26 from ~50% in Q4 FY25, reflecting global diversification.
ROIC
31%
flat YoY
Return on invested capital remained healthy at 31%, indicating efficient capital allocation.
Textile Volume Growth
15%
+15% YoY
Textile specialty chemical volumes grew 15% YoY in Q4, driven by improving export demand.
What Changed vs Last Quarter
NEW
CCT revenue target of $200 million by FY28
Management revised the CCT revenue target from 2030 to FY28, with Q4 FY26 as the baseline run-rate of ~$90-100 million.
NEW
Consolidated EBITDA margin target of 18-20%
Management expects blended EBITDA margins to improve to 18-20% in the near term, possibly within FY27.
NEW
Doubling CCT manufacturing capacity
CCT's manufacturing capacity is being doubled with $7 million capex already deployed; new machines being installed.
NEW
Further 25% stake acquisition in CCT by January 2028
Agreement to acquire an additional 25% stake from founders by January 2028, increasing ownership to ~79-80%.
DROPPED
FY27 revenue target of ₹1,000 crore+
Management expects consolidated revenue to exceed ₹1,000 crore in the next financial year, driven by CCT full-year contribution and textile recovery.
DROPPED
Oil & gas to contribute 45-50% of revenue
Oil & gas segment (including CCT) is expected to account for 45-50% of total revenue going forward.
DROPPED
CCT margins to improve to double digits
CCT's EBITDA margins, historically around 7-8%, are expected to improve to double digits due to capital infusion and better procurement.
DROPPED
Capex of ₹70-80 crore over 1.5-2 years
Capital expenditure for CCT expansion and other projects is expected to be around ₹70-80 crore (less than $10 million) over the next 1.5-2 years.
NEW RISK
Working capital pressure from inventory buildup
Working capital cycle increased to 79 days (85 days for CCT) due to global logistics disruptions and raw material shortages, which could strain cash flows.
NEW RISK
Global logistics and raw material cost volatility
Management acknowledged container shortages and freight cost increases, which may impact margins if not fully passed through.
NEW RISK
Integration and execution risk in CCT scale-up
Rapid capacity expansion and technology transfer to CCT may face operational hiccups, though management is confident.
NEW RISK
Dependence on US oilfield market conditions
CCT's growth is tied to US oil and gas activity; any downturn in drilling or regulatory changes could impact demand.
RISK GONE
CCT integration and margin improvement timeline
CCT was consolidated for only 15 days in Q3; achieving double-digit margins may take longer than expected due to integration complexities.
RISK GONE
Textile margin pressure from discount rollback
Management provided discounts to textile customers during the tariff uncertainty and plans to roll them back from March 2026, which could impact customer retention.
RISK GONE
Domestic revenue stagnation
Domestic revenue remained flat YoY at ~₹95.6 crore, indicating limited organic growth in the home market despite new capacity.
RISK GONE
Dependence on US trade policy for textile recovery
Textile recovery hinges on favorable US tariff resolution; any reversal or delay could impact expected order book improvement.
Fast read
Guidance and risk preview
Management revised the CCT revenue target from 2030 to FY28, with Q4 FY26 as the baseline run-rate of ~$90-100 million.
Working capital cycle increased to 79 days (85 days for CCT) due to global logistics disruptions and raw material shortages, which could strain cas...
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