Fine Organic Industries Ltd (FINEORG) Q2 FY27 Results Analysis: PAT Jumps 40%, EBITDA Margin Beats Guidance

Cofacto Research Published November 02, 2026 5 min read

Fine Organic Industries Ltd reported Q2 FY27 numbers with revenue of Rs. 729.39 Cr (+22.12% YoY) and PAT growth of +40.24% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details

Results date	November 02, 2026
Revenue (Q2)	Rs. 729.39 Cr (+22.12% YoY)
PAT (Q2)	Rs. 152.23 Cr (+40.24% YoY)
EBITDA margin	25.35% (+272 bps YoY)
EPS (Q2)	Rs. 49.62 (+40.17% YoY)

Quarter Snapshot

Q2 FY27 delivered a 25.35% EBITDA margin, ~535 bps above management's guided 18-20% band, with revenue up 22.12% and PAT up 40.24% YoY. The SEZ capex program is on track (CWIP +173% to Rs.170.73 Cr) and the OFM/FOIT acquisitions added Rs.17.09 Cr PAT in three weeks. The main watch item is cash conversion (H1 CFO/PAT of 0.34x) driven by a Rs.96 Cr inventory build and payables rundown.

Q2 FY27 Expectations vs Results

Driver	Expected before results	What happened	Verdict
EBITDA margin	"margins likely compress from Q1's 25.3% print — whether they settle back inside the guided 18–20% band"	25.35% — flat QoQ, +272 bps YoY; well above band	Contradicted
Revenue	"reported revenue should read ahead of the organic, price-led run-rate" (inorganic bump)	+22.12% YoY consolidated; subsidiaries +Rs.35.90 Cr revenue / +Rs.17.09 Cr PAT in ~3 weeks	Played out
Raw materials	quarter-average elevated; late-quarter palm relief "with a lag"	Materials +19.77% YoY; gross margin eased QoQ but up YoY; inventory days 115.2	Partially
Utilities/fuel	"the sharpest swing factor… would have built further in Q2"	Other expenses +13.73% YoY, below revenue growth; no utility line disclosed	Contradicted in aggregate / not observable at line level
Employee cost	"similar or higher than FY26's 15%"	+18.86% YoY	Played out
US plant investment figure	disclosure due "next quarter" from the May 21, 2026 concall	Not disclosed in the filing — remains open for the call	Not observable
SEZ CWIP ramp	"meaningful CWIP increases expected in coming quarters"	CWIP Rs.170.73 Cr vs Rs.62.50 Cr (+173%)	Played out
OFM/FOIT first consolidation	~3-week contribution; PPA impact; Smoothex leg	Subs +Rs.17.09 Cr PAT; NCI Rs.37.42 Cr; Thai entity lost Rs.4.50 Cr in the quarter; PPA quantum undisclosed	Partially

Read our full results preview.

Management Guidance vs Delivery

What management said	Where	What happened	Verdict
EBITDA margin 18–20% sustainable ("we will try to be between 18% to 20%")	Q4 FY26 earnings call	25.35% consolidated / 24.42% standalone — above band top	Met
Top line flat, price-led till SEZ ("very flat till the SEZ plant is commissioned")	Q4 FY26 earnings call	+22.12% YoY consolidated, +21.26% standalone (incl. ~3 weeks OFM/FOIT)	Met directionally; organic split undisclosed
Employee cost growth "similar or higher" than FY26's 15%	Q4 FY26 earnings call	+18.86% YoY (Q2), +18.34% (H1)	On Track
SEZ commissioning H2 FY28 / FY 2028	Q4 FY26 earnings call; Aug 18, 2026 AGM	CWIP Rs.170.73 Cr vs Rs.62.50 Cr; investment limit now Rs.420 Cr	On Track
SEZ Phase 1 capex Rs.700–750 Cr	Q4 FY26 earnings call / AGM	Rs.342.5 Cr + Rs.55 Cr infused; limit Rs.420 Cr	On Track
"Raw material prices… no lower prices expected; be a little careful in FY27"	Q4 FY26 earnings call	Materials cost +19.77% YoY, slower than revenue; gross margin still expanded YoY to 43.26% — costs stayed elevated); margin outcome better than the caution implied	Confirmed
Plants at full capacity; growth price-led not volume-led	Q4 FY26 earnings call and AGM	Not separately verifiable (no volume KPIs published); price/FX-led growth frame intact with ~60% export mix per prior-quarter disclosure	Too Early
FY26 employee-cost growth (15% ex-gratuity) to repeat or worsen	Q4 FY26 earnings call	Q2 employee cost +18.86% YoY, but −5.23% QoQ	Confirmed

Key Numbers, Quarter by Quarter

Metric	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27	Q2 FY27
Consolidated EBITDA margin %	22.63	16.9 (derived, per prior notes)	20.8 (per prior notes)	25.35	25.35
Export mix % of revenue	~55	53	55	~60	not disclosed

Key Investment Insights

Key Positives

Consolidated revenue grew 22.12% YoY to Rs.729.39 Cr; standalone grew 21.26% to Rs.693.49 Cr
EBITDA margin of 25.35% (consolidated) and 24.42% (standalone) exceeded management's guided 18-20% band by ~535 bps and ~440 bps respectively, up ~272 bps YoY
PAT to equity shareholders grew 40.24% YoY to Rs.152.23 Cr; EPS grew 40.17% to Rs.49.62
Other expenses grew 13.73% YoY, well below revenue growth, driving EBITDA up 36.80%
Gross margin expanded YoY to 43.26% from 41.57% despite elevated raw-material costs
CWIP rose 173% to Rs.170.73 Cr on the SEZ build; SEZ investment limit raised from Rs.300 Cr to Rs.420 Cr
Subsidiaries contributed Rs.17.09 Cr PAT in ~3 weeks of OFM/FOIT consolidation; standalone PAT grew 41.72% YoY
Net worth rose Rs.303 Cr in six months; cash and bank balances of Rs.1,529.59 Cr

Risk Factors

H1 CFO/PAT of 0.34x (vs 0.72x last year) with free cash flow of −Rs.62.46 Cr on a Rs.96.01 Cr inventory build and Rs.159.28 Cr payables rundown
Inventory cover stretched to ~115 days from ~102 days in March; inventories up 28.69% to Rs.517.97 Cr
Gross margin eased QoQ from 45.38% to 43.26% as input prices firmed
Employee cost grew 18.86% YoY, above the guided 15% threshold
Borrowings rose 244% to Rs.154.68 Cr; finance costs up to Rs.2.11 Cr from Rs.0.43 Cr
Thai subsidiary lost Rs.4.50 Cr after tax in the quarter; Fine Zeelandia JV loss share of Rs.2.46 Cr