Fine Organic Industries, India’s largest manufacturer of oleochemical-based additives, has reported a mixed set of numbers for the quarter and nine months ended December 31, 2025, as rising input costs weighed on margins despite steady demand across markets.

 

The company, which produces over 600 products used in food, polymers, cosmetics, paints, inks and coatings, posted revenue from operations of Rs. 554.8 crore in Q3 FY26, up 7.3% year-on-year from Rs. 516.8 crore. However, revenue slipped 7.1% sequentially from Rs. 597.3 crore in Q2.

 

For the nine-month period, revenue rose 4.7% to Rs. 1,740.5 crore, compared with Rs. 1,662.4 crore a year ago.

 

However, profitability took a hit during the quarter. EBITDA declined 8.2% year-on-year to Rs. 94.4 crore, while EBITDA margin narrowed sharply to 17.0% from 19.9% in Q3 FY25 and 22.6% in Q2 FY26.

 

Net profit (PAT) fell 10.6% year-on-year to Rs. 73.9 crore and was down 31.9% sequentially. PAT margin contracted to 13.3%, compared with 16.0% a year ago and 18.2% in the previous quarter.

 

For the nine months, PAT stood at Rs. 299.6 crore, down 4.4% year-on-year. The figure includes a claim of Rs. 6.98 crore received as full and final settlement for business interruption from an insurance company.

 

Exports continued to anchor performance, accounting for 53% of total revenue in Q3 FY26 and 54% for the nine-month period. Domestic sales contributed 47% and 46%, respectively.

 

Overall demand remained stable through the quarter and the nine-month period. Export markets delivered steady performance, while domestic demand showed signs of improvement.

 

Raw material prices increased in FY26 compared to FY25, with a slight uptick in Q3 over Q2, adding pressure to operating margins.

 

Freight costs, however, offered some relief. They stabilized during the year and declined further in Q3, largely due to easing global sea freight rates.

 

The Government of India’s four new Labour Codes, effective November 21, 2025, prompted the company to recognize an additional estimated provision of Rs. 7.11 crore towards past service cost for gratuity. The adjustment, made in line with Ind AS 19 – Employee Benefits, was reflected in the financial results for the quarter and nine months ended December 31, 2025.

 

Fine Organic continued to step up its international footprint: It has infused Rs. 6.17 crore in its joint venture, Fine Organic Industries (Thailand) Co. Ltd., to support business growth.

 

The company has also incorporated a wholly owned subsidiary, Fine Organics FZE, in Dubai, UAE, to strengthen its presence in GCC markets and improve supply chain efficiency.

 

Also in Q2 FY26, the company incorporated Fine Organics Americas LLC in the United States to set up a manufacturing plant. It invested USD 1.12 million (about Rs. 9.6 crore) and acquired approximately 159.9 acres of land in Jonesville, Union County, South Carolina.

 

With stable demand but rising costs squeezing margins, Fine Organic’s near-term performance will likely hinge on input price trends and the pace of recovery in domestic markets — even as it doubles down on global expansion.