FCLNSEQ4 FY2025-26May 21, 2026

Fineotex Chemical Limited

9,170words

125turns

16analyst exchanges

4executives

Download PDF ↗FCL stock page →

Management on call

Aarti Jhunjhunwala

EXECUTIVE DIRECTOR – FINEOTEX CHEMICAL LIMITED

Arindam Choudhuri

CHIEF EXECUTIVE

Sanjay Tibrewala

CHIEF FINANCIAL

Yusuf Contractor

HEAD, MERGERS &

Key numbers — 40 extracted

rs,

. Aarti Jhunjhunwala: Good morning, everyone. It's always a pleasure to connect with our investors, analysts and stakeholders. We deeply appreciate your time and continued trust in Fineotex Chemical

2.1%

tion of the sustainable and performance-driven chemical formulation. Indian textile export grew 2.1% year-on-year in FY '26 to 3.16 trillion. I repeat 3.16 trillion, led by ready-made garments, grow

162%

by highlighting to all that quarter four financial year '26, our revenue from operations grew by 162% to INR314 crores, compared to the last year quarter. This strong performance was driven by health

INR314 crore

lighting to all that quarter four financial year '26, our revenue from operations grew by 162% to INR314 crores, compared to the last year quarter. This strong performance was driven by healthy underlying dem

118%

ust contribution from our newly acquired business. Our profit after tax for the quarter grew by 118% to INR44 crores, compared to INR20 crores in quarter four financial year '25, reflecting both str

INR44 crore

ribution from our newly acquired business. Our profit after tax for the quarter grew by 118% to INR44 crores, compared to INR20 crores in quarter four financial year '25, reflecting both strong operational

INR20 crore

acquired business. Our profit after tax for the quarter grew by 118% to INR44 crores, compared to INR20 crores in quarter four financial year '25, reflecting both strong operational performance and improving

70%

g business mix. Additionally, our international revenue contribution increased significantly to 70% in quarter four financial year '26, demonstrating the growing scale, traction and the growing glo

31%

eturn ratio perspective, the company continues to maintain healthy financial metrics with ROIC at 31%, reflecting efficient capital allocation and disciplined execution. Further, our working capita

200 million

ats on great set of numbers. My first question is on our US acquisition of CCT. Are we expecting $200 million of revenue in FY '28? And because I was looking at the PPT where it mentioned the specific number

90 million

e the run rate at what we are in quarter four, if you annualize it, it's already touching almost $90 million to $100 million and the kind of traction, which has been seen with the customers, the kind of tec

100 million

at what we are in quarter four, if you annualize it, it's already touching almost $90 million to $100 million and the kind of traction, which has been seen with the customers, the kind of technology transfer

Advertisement

Guidance — 20 items

Arindam Choudhuri

opening

“Going forward, we remain optimistic on the sector outlook supported by China Plus One opportunity, supply chain diversification, sustainability driven demand and potential benefits from ongoing trade agreement and FTAs across key export markets.”

Sanjay Tibrewala

opening

“Importantly, even post-acquisition and through the ongoing expansion initiatives, the company continues to maintain a strong financial position, enabling us to remain focused on both organic and inorganic growth opportunities going forward.”

Sanjay Tibrewala

opening

“Going forward, the company remains actively focused on expanding its global specialty chemical portfolio through a combination of organic growth initiatives, strategic joint ventures, technology collaboration and selective inorganic opportunities across high-growth specialty chemicals segment.”

Sanjay Tibrewala

“So yes, already, if you see the run rate at what we are in quarter four, if you annualize it, it's already touching almost $90 million to $100 million and the kind of traction, which has been seen with the customers, the kind of technology transfers we have done, the kind of efficiencies, I am very confident that the team will be able to deliver a $200 million business in the coming times.”

Sanjay Tibrewala

“So going forward, I think comfortably, we should be at EBITDA of 15% more or less.”

Amit Mehendale

“Any color on some products and services will be great?”

Amit Mehendale

“So at peak capacity, what will be our revenue for the US business?”

Sanjay Tibrewala

“Thereafter, we had a plan to start from organically, rather there are a lot of opportunities, which are coming in, especially in these times for inorganic acquisitions for companies who are looking for growth capital and things like that.”

Sanjay Tibrewala

“So, yes, eventually, there will be something or the other, which is going to shape up in the Middle East.”

Darshil Jhaveri

“So, sir, just wanted to understand with the $200 million target that we have from CCT business itself, what is the revenue guidance that we could give for FY '27 and FY '28?”

Risks & concerns — 7 flagged

So right now, inventory is not the challenge.

— Sanjay Tibrewala

So in fact, the challenge there is more.

— Sanjay Tibrewala

Sanjay ji, first of all, my heartiest congratulations for achieving such brilliant performance in the midst of such uncertain world order.

— Nalin Shah

I don't feel a challenge that it can go another 3, 4 times in the next 4 years or something like that.

— Sanjay Tibrewala

I think the last quarter and also the April month was something which was a bit of a challenge to realign, readjust our inventory levels, readjust our pricing.

— Sanjay Tibrewala

It's very difficult to answer you numerically.

— Sanjay Tibrewala

Are there any sort of chemistries which are difficult for the competitors or somebody to come up or any technical barriers which are there, which is protecting the business right now for us from CCT?

— Rohit Ohri

Advertisement

Q&A — 16 exchanges

Thank you, and congrats on great set of numbers. My first question is on our US acquisition of CCT. Are we expecting $200 million of revenue in FY '28? And because I was looking at the PPT where it mentioned the specific number, and the timeline as well. And also, what type of EBITDA are we looking at in terms of EBITDA percentage as we scale up the business?

Sanjay Tibrewala

Yes. Thank you so much for this question. This is something, which we have been answering very often. So yes, already, if you see the run rate at what we are in quarter four, if you annualize it, it's already touching almost $90 million to $100 million and the kind of traction, which has been seen with the customers, the kind of technology transfers we have done, the kind of efficiencies, I am very confident that the team will be able to deliver a $200 million business in the coming times. At the same time, the EBITDA margins have been improving considerably with the, kind of, the resources, w

Sure. Thanks.

Management

Sir, on the CCT side, can you just explain us where is this whole growth linked to for us to better comprehend the scale up to $100 million and the scale up to $200 million revenue in a couple of years' time. So, is it a fair assumption that it's actually linked to the US Oil & Gas production and you could give some linkages there?

Sanjay Tibrewala

Yes, definitely, the market in North America has been growing rapidly, and also not only North America, I mean, the Suriname and Guyana, these are the new places, which is coming up in Venezuela also is getting into the limelight from most of the users, service providers. So around North America, there is no doubt that the oil activities are going to go up furthermore. CCT is well-poised for having the best kind of systems and the best kind of customers' approach. Historically, they have been working with all the biggest users, let's say, all the biggest marquee names, which must be there on t

Hello. Good morning, sir. Thank you so much for taking my question. Firstly, congratulations on a great set of a result sir. Hopefully, I am audible?

Sanjay Tibrewala

Could you be a little loud, Mr. Jhaveri? Hello, hi. I hope this is better, sir. Yes, much better. Please go ahead. Yes. Hi, sir. So, sir, just wanted to understand with the $200 million target that we have from CCT business itself, what is the revenue guidance that we could give for FY '27 and FY '28? I mean, Mr. Jhaveri, there are so many things going on. I don't want to be too vague enough to be wrong, but there are so many things moving around. And I think whatever we have seen in quarter four is the base, which we have set going forward. So we also revised, we were planning $200 million bu

Yes. Okay. Thank you.

Management

Sanjay ji, congratulations for the entire team for the excellent performance of Q4. I have a few questions regarding the…

Management

Yes, Mr. Nalin Shah. Please go ahead.

Management

Sir, many congratulations for an extremely attractive valuation that you completed in CCT. Sir, there are two questions. So, firstly, the consolidated EBITDA margin is 14% for Q4. Sir, so for FY '27 itself, you are expecting the EBITDA to increase to the range of 18% to 20%? Or will it be a gradual increase? And if so, what is the broad EBITDA at consol level for FY '27? And sir, secondly, we have 53% stake in CCT, so any road map to increase it and make it into a fully- owned subsidiary or we will stay at this level only?

Sanjay Tibrewala

So, to take your first question, there has been enhancement in the EBITDA. There has been enhancement in the businesses also. You will see that eventually, even from this quarter, you will see, like I said, in a way that what you saw in quarter four was a base. Things are getting much better than where it is now, where it was before. There is no doubt that eventually we'll be targeting and touching the blended EBITDA, what I mentioned to you, one of the participants just now. And so yes, that's the outlook where we are confident enough to develop. Coming to your different question about the st

Yes. Congratulations, sir, for the good numbers. Sir, my question relates to, is it possible for you to share the numbers of the CrudeChem for fourth quarter?

Sanjay Tibrewala

So I'll be sharing those details with you. It's almost -- I'll give you the details. It's more or less INR170 crores or something like this on the -- INR165 crores. So that can be shared. But as such, we are not -- I cannot give most of the details right now. We can always connect about it and give you more information with our Investor Relations company or you can contact our team members also for that. Second question, sir, related to working capital for CrudeChem. So if you can talk about that, how is the working capital cycle for them is inventory days or debtor days for them? So actually,

Okay. Great. Thank you.

Management

Hello. Hopefully, I'm audible Congratulations, sir, on a great set of numbers and a great acquisition at a cheap valuation. Sir, if you could throw some color on working capital again. On the last 2 years, it's been on an increasing track. So where do you expect this number to sort of stabilize? And our OCF was also sort of negative for this full year. So is this something to do with the acquisition or how would it work out for the next year?

Sanjay Tibrewala

Perfect. So let me tell you the working capital right now is almost 79 days, which is at par with the industry requirements. There is no doubt about it. Number two, right now, as you can also understand the kind of uncertainty in the availability of raw materials and other logistics and the kind of delays, which is happening globally. It's very important to keep inventory -- higher inventories in control because of such kinds of -- we have to -- we are committed with our customers and that we need the stock in place. So right now, inventory is not the challenge. It's not the focus also. Workin

Thanks for the opportunity. Sanjay ji, brilliant set of numbers. Nice to see growth coming back after 2 years of little hardships. I just have -- I mean, I can touch base with your team later for the financials. I just wanted a couple of things. In CCT, do we follow the same logic that you used to follow in FCL, which is tailor-made products for the customers or so that there is more customer stickiness going forward?

Sanjay Tibrewala

Absolutely. That's befitting our model itself. So it's exactly the same thing. Everything is tailor- made. Everything is designed as per the customer. In fact, to be more precise, like in India, we don't have too much of weather fluctuations, whereas in U.S., we have to tweak the products accordingly to have working it in minus 20 degrees with snowfall. At the same time, sometimes it is 40 degrees or 45 degrees centigrade also. So in fact, the challenge there is more. There is more customization required there, which we have been proving ourselves very well. Was that being done by CrudeChem ev

Sanjay ji, first of all, my heartiest congratulations for achieving such brilliant performance in the midst of such uncertain world order. It is an excellent performance. Some of the questions which comes to my mind is that looking to the future, one, that what is the kind of top line which you would like to sort of project in next 3 years, because after this acquisition, it appears that it has become a game changer for the company. So what is the kind of top line you are expecting from here? And as you rightly said that Q4 is establishing the benchmark for the future, so in the light of that,

Sanjay Tibrewala

Thank you so much, Mr. Nalin Shah. So, okay, so taking up your first question, what I mentioned was the quarter 4 numbers are the base numbers. It's not reflecting that this is all about it. And this is just a base which has been set. The way the things are going on even in the current scenario, the kind of demand coming from the customers, I am very sure that there is a lot of things which are going to happen even this year. Excellent. Going forward, I think with Fineotex organic growth, the kind of -- last year, we had a new plant investment in India, which is in Ambernath, plus we have the

Yes, hi. Thank you so much for taking my question, and good morning and congratulations to the entire team for a great set of numbers. My first question, sir, would be at group level on the raw material side, what kind of raw material supply chain tightness are you looking at? That is one. And secondly, also what level of -- what percentage of your contracts are spot and what are contracted for basically and what time lines are those contracts for?

Sanjay Tibrewala

So by and large, in the businesses of Fineotex or CCT, it's not based on contracts. It's not government orders where you have to follow the kind of the volume commitments or the pricing. And again, there's a tender, there's nothing as such, okay? So it's more driven in the similar lines like the way Fineotex has been doing. We keep inventory in hand for a month or 2. As soon as there is an increase in the prices, we start talking to our customers to pass on the increase. This is something which we have been doing in CCT also and in Fineotex also. That's going very well. The only thing is that,

Hi team. Many congrats to Aarti for receiving this invitation from the Honorable President of India.

Sanjay Tibrewala

Thank you. Thank you very much, Mr. Rohit. Yes. Sanjay, I've got a few questions. First one, is there any sort of seasonality that we see in the CrudeChem business? Not at all, actually. This is something which there is no seasonality in this business. It's like drilling and completion, production keeps going on and on. U.S. is the best place to be for those segments. I mean there is no seasonality on this business. So on a steady state, then CrudeChem can give us somewhere around INR600 crores, INR650 crores kind of a top line, right? Yes, easily. There's no doubt about it. Okay. Can you take

So thank you, everyone. Thank you participants for joining in. I would like to thank all of you. And if there is anything you want some further insight or information, our team will be very much delighted to reply to you as soon as possible. You can contact our Investor Relations team. The e-mail IDs are with you or you can contact Mr. Yusuf Contractor or you can contact the Adfactors team. And we will try our best to explain you the developments. And going forward, you can expect a more stronger days going forward. Thank you very much. Have a good week ahead. Thank you.

Aarti Jhunjhunwala

Thank you, everyone. Thanks a lot.

Speaking time

Sanjay Tibrewala

Moderator

Darshil Jhaveri

Rohit Ohri

Pritesh Chheda

Nalin Shah

Amit Mehendale

Anupam Agarwal

Sunil Jain

Vinay Nadkarni

Advertisement

Opening remarks

Aarti Jhunjhunwala

Good morning, everyone. It's always a pleasure to connect with our investors, analysts and stakeholders. We deeply appreciate your time and continued trust in Fineotex Chemical Limited. Fineotex today is evolving into a diversified global specialty chemicals platform driven by innovation, customer centricity, sustainability and execution excellence. Over the years, we have built strong capabilities across textile specialty, FMCG and hygiene chemicals and are now strategically expanding into the high-growth adjacent segments, including Oil & Gas and water treatment chemical. As you all are aware, in December 2025, we acquired CrudeChem Technologies Group, a US- based specialty oilfield chemical manufacturer focused on advanced chemical fluids, additives and comprehensive solutions for the global Oil & Gas sector. This acquisition marked a significant step in our strategic expansion into high-value specialty chemical segment, further strengthening our position as a diversified global spe

Arindam Choudhuri

Thank you, Aarti ji, and very good morning, everyone. Coming on to the Textile Specialty Chemicals, the industry environment remains stable with healthy underlying demand during the quarter, both globally, as well as in India. Expanding on to India-US trade deal, its key point, its effect on the textile sector. It has the potential to significantly strengthen Indian textile export competitiveness, which adds further excitement in the domestic textile and garment producers, particularly along with the evolving trade, framework and partnership with the UK and European market, which we all aware. Demand continued to be supported by recovery in the apparel export, growth in home textile, increasing penetration of technical textile by Government of India and rising adaptation of the sustainable and performance-driven chemical formulation. Indian textile export grew 2.1% year-on-year in FY '26 to 3.16 trillion. I repeat 3.16 trillion, led by ready-made garments, growth occurred across 120-pl

Yusuf Contractor

Thank you, Arindam ji. Good morning, everyone. Coming on to the Oil & Gas segment. The overall industry environment continues to remain constructive, supported by stable upstream and midstream activity levels across the global energy markets, particularly in North America. Demand trends remain healthy across specialty oilfield chemical categories. Customers globally are increasingly focused on operational efficiencies, production optimization, water management, sustainability and high-performance formulations. This continues to drive demand for value-added specialty chemical solutions and technically differentiated products. From a strategic perspective, the recent US acquisition represents an important milestone in Fineotex's long-term vision of building a diversified global specialty chemicals platform. Beyond the immediate scale-up in the Oil & Gas segment, the acquisition strengthens our technological capabilities, manufacturing footprint, customer access and presence in high-value

Sanjay Tibrewala

Thank you, Yusuf ji. Thank you. Good morning, everyone. I would like to start by highlighting to all that quarter four financial year '26, our revenue from operations grew by 162% to INR314 crores, compared to the last year quarter. This strong performance was driven by healthy underlying demand across three business segments, along with robust contribution from our newly acquired business. Our profit after tax for the quarter grew by 118% to INR44 crores, compared to INR20 crores in quarter four financial year '25, reflecting both strong operational performance and improving business mix. Additionally, our international revenue contribution increased significantly to 70% in quarter four financial year '26, demonstrating the growing scale, traction and the growing global diversification of our business. From a return ratio perspective, the company continues to maintain healthy financial metrics with ROIC at 31%, reflecting efficient capital allocation and disciplined execution. Further

Advertisement

← All transcripts FCL stock page →

Fineotex Chemical Limited

Market Movers