Fineotex Chemical Limited (NSE: FCL) Q1 2026 Earnings Call dated Aug. 13, 2025
Corporate Participants:
Unidentified Speaker
Aarti Jhunjhunwala — Executive Director
Arindam Choudhuri — Chief Executive Officer, Textile
Sanjay Tibrewala — Chief Financial Officer and Executive Director
Analysts:
Unidentified Participant
Aryan Kumar — Analyst
Devinder Kumar — Analyst
Vinay Nadkarni — Analyst
Anupam Agarwal — Analyst
Parth Patel — Analyst
Bhavin Soni — Analyst
Ravi — Analyst
Kautuk Yemdey — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q1FY26 conference call of Finotex Chemical Limited. As a reminder, all participant lines will be in the lesson only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Aarti Jhunjanwala from Finotex Chemical Limited. Thank you. And over to you, Ms. Aarti.
Aarti Jhunjhunwala — Executive Director
Thank you very much and good evening everyone. Let me start by extending a warm welcome to everyone who has joined us on call today. It is always a pleasure to connect with our investors, analysts and stakeholders. We deeply appreciate your time and continued trust in Finotex Chemical Limited. Before delving into the operational performance, I would like to give a brief overview of the company. Commenced as a specialty chemical company, we have evolved into a one stop solutions provider offering specialty performance chemicals across diverse business lines including textile chemicals, fmcg, cleaning and hygiene, oil and gas and water treatment.
Our domain expertise combined with deep customer relationships enables us to deliver high quality tailor made solutions that address the evolving needs of the industries worldwide. Backed by a strong manufacturing base and a growing global footprint, we are well positioned to capture the immense global opportunities ahead. Operationally, our consolidated sales volume increased by 14.73% on a quarter on quarter basis, reflecting healthy performance across key geographies and product categories. I’m pleased to share that we recently commenced commercial operations at our new plant which spreads across 3 lakh square feet. This greenfield facility adds 15,000 metrics per annum of capacity taking our total install capacity to approx.
1 20,000 metric tons per annum. Designed with a state of the art manufacturing technology and a strong focus on environmental sustainability, this plant will enhance our ability to beat the rising global demand while adhering to highest ESG standards. This said, the expansion has been successfully executed within the planned timeline and budget funded through internal accruals and fundraise. During this quarter, the Company has approved the grant of an additional 58,797 stock option at a face value of Rupees 2 to the eligible employees of the company pursuant to exercise of vested employee stock options. This reinforces our commitment to recognizing and rewarding the contributions of our talent pool which remains integral to driving our growth.
With regards to our expansion into water treatment and oil and gas, it is strongly progressing with a growing pipeline of orders in both domestic and export markets. We are leveraging our expertise to tap into significant growth potential in these sectors and already engaging with leading oil and gas companies as potential customers. This is all from my end. I would now like to ask Arindamji to take us through our key developments. Thank you.
Arindam Choudhuri — Chief Executive Officer, Textile
Thank you Aartiji. With focus on ESG and sustainability, we have forayed into oil and gas and water treatment verticals in particularly oil and gas. Higher upstream activity and refinery expansions are boosting demand for demulsifiers, corrosion innovators and stimulation chemicals. With a clear market shift towards eco friendly water based formulation, we are in water treatment. The demand is being driven by industrial expansion, stricter environmental regulation by local and zero liquid discharge that is JLD mandates. This diversification reinforces our business resilience and position us to capture opportunities in high growth and high demand industries. On the industry front, the approved free trade agreement that is FTA between India and the UK is set to further strengthen our foothold in the UK and broader European markets, especially in the textile and specialty chemicals as explained by rtv.
Lastly, we are proud to have been certified as a great place to work for the fourth consecutive year. Testament to our strong workplace culture and employee centric approach. So with this I would like to hand over the call to Sanjay Ji who will take us through the financial performance of our company. Thank you.
Sanjay Tibrewala — Chief Financial Officer and Executive Director
Thank you Arindam Ji and good evening everyone. Thanks for joining in. Once again. As you know, since our listing, Binodex. Has delivered a strong growth trajectory with our top line expanding at a CAGR of 28%. Our revenue is growing at 22% CAGR and PAT registering over 50% CAGR over. The last five years, underscoring the sustained. Demand for our products and performance. For the financial performance. For the first quarter, our total income. Was 146.22 crores witnessing an increase of approximately 15% QoQ basis. The gross profit for the quarter stood. At 45.96 crores showing a growth of almost 6% and margins being healthy at 34% approximately. The EBITDA for the quarter was 25.20. Crores growing at 18.34% sequentially while the. EBITDA margin showed an increase of 61 basis points standing at 18.3%. The PAT witnessed an increase of 25% QoQ basis approximately and is now at. 25.03 crores Visa vis 20 crore 13. In the last quarter the PAT margin. Stood at 18.26% witnessing an impressive growth. Of 145 basis point the ROCI of. The business stood at impressive 30.72% on. A console basis, the shares of exports. In total income came to 24% during this quarter. The company has a healthy order book reflecting its underlining business performance and customer trust. Our long term strategy remains focused on developing our core businesses while diversifying in our new verticals as well. We have recently commenced the commercial operations. Of our new plant in Abernath. This month itself increasing our capacity to approximately one 20,000 tons further strengthening our. Position in the market. Our disciplined financial management provides a solid foundation to capitalize on the opportunities both. Organic and inorganic including strategic investments in R and D, market expansion and selective. Acquisitions aligned with our long term vision. By maintaining a strong focus on operational. Excellence and a customer centric solution we aim to unlock new revenue streams and. Extend our presence across Cree and emerging markets. Backed by a clear roadmap and healthy. Order pipeline and ongoing diversification into high potential sectors. We are well positioned to deliver value to our stakeholders and achieve our ambitious growth targets. With that, I now open the floor for questions. Thank you very much. Over to you Shruti.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Aryan Kumar from AB Capital. Please go ahead.
Aryan Kumar
Hello.
operator
Yes sir. Please go ahead.
Aryan Kumar
Yes, sir. Yeah, Sanjay. My question is. With the addition of the new facility. Are you getting new orders? The strong demand pipeline as you have mentioned in the presentation.
Sanjay Tibrewala
Hello. Yes, I mean is that the question only?
Aryan Kumar
Okay, this is the question. So.
Sanjay Tibrewala
Yes, that’s right. And as such we had acquired this premises last year January and it took. Us almost as per the plan. It took us almost 18 months to. Within 18 months we have initiated and commissioned the plant. So by and large this adds to our production capacities. By the phase one is 15,000 tonnes so totaling to one 20,000 tons right now. And these capacities are fungible. So these can the products which we. Supply to all the industries like FMCG, textile specialties, drillings, etc. All of these products can Be made in the same facility.
Aryan Kumar
Okay, my next question is any order flow for equestrian or it is delayed to next summer?
Sanjay Tibrewala
No. So basically as you might have got our updates we have approved got the approval from cib. Thereafter we have got the approval from Hopkins also. Right now we are in touch with NGOs and the government. There are certain registration process which are on. So most likely we should be expecting some revenues in the coming times. In the near future.
Aryan Kumar
Yeah, means late next summer.
Sanjay Tibrewala
No, no, right now as we are in August there is a lot of this. We have just completed quarter one. You’re very hopeful in the near future. We should have some right news on that.
Aryan Kumar
Okay. Okay.
operator
Aryan sir, I request you to rejoin the queue for the follow up question. Our next question is from the line of Devindra Kumar from EV Investments. Please go ahead.
Devinder Kumar
Hello.
operator
Yes. Yes Devendra sir, please go ahead.
Devinder Kumar
Congratulations for good quarter. Thank you. Devendraji, any guidance for the coming quarter? Any uptick you are seeing in the SMCG like you have mentioned in the previous con call or in the technical textile. Hello. Hello
Sanjay Tibrewala
Devendraji, you are echoing or something is happening actually.
Devinder Kumar
Hello.
Sanjay Tibrewala
Yeah Devendraji, I mean we got your question. So regarding the technical textiles and regarding the fmcg. The the business flow is looking good enough. Technical textile has always been our intrinsic part of our textile specialty chemical offerings. There is a huge demand coming up. Because the technical textiles is mainly applicable. More on the defense areas where they need specialty chemicals for giving water replenish flame retardancy, blood repellent for the defense. And other kind of fabrics. So that is the demand is growing actually globally it is growing not only in India. That’s also helping us to produce more such kind of products. That’s one at the same time giving a guidance in the last like I also mentioned in today’s introductory commentary where we have mentioned that the last five. Years the company has almost performed to 45 to 50% CAGR. And if you see since listings in the last part 56/4 of the company being listed there has been a significant. Let’S say 28 to 30% growth in. The last 14 years CAGR as well. So we can see that in going. Forward we can expect certain kind of. Growth rates depends on what kind is the external factors happening. And that is the way we are very much optimistic with the opportunities which are coming to us.
Devinder Kumar
Now the next question is in the presentation. I have read your market share in detergent market has increased. Can you please explain have you acquired new customers or with the Current customers, your order inflow has increased.
Sanjay Tibrewala
So this is a continuous, ongoing process and we are proud to tell you that we have been focusing more on sustainable solutions. As you know that Detergent is a. 50 billion dollar market and even and. Most of the chemicals which are used in detergent making is all, you know, not so eco friendly. And sustainability is coming up very strongly in that. If you see the updates from Procter. And Gamble and Godrej etc, most of them have decided to go for lapsa free, acid slurry free, soda ash free and lot of more product lines considering the initiatives also from the government and also as a corporate, they have also. Taken the initiative, reduce the carbon footprints, etc. So in that lines we are one of the early movers in this sector. Let’s assume that even 10% of this market gets sustainable in the next five years. We are talking of almost 10% of. A 50 billion dollar market which is like 5 billion dollar market. And the offerings of the products which we have in this sector is almost 8 to 10%. So which also leaves us a very big room going forward. The takers of these sustainable solutions right now more or less is like BASFs of the world. BASFs, Dao Norion. So all of these companies are almost like 60 to 70 billion dollar companies and this is just one of the areas where they are present. So going forward we are very excited. The more faster the sustainability drive takes place in fmcg cleaning detergents.
I think that will be a great move for us. So right now that is happening. Many companies have gone forward and started working on sustainable solutions to replace their basic chemistry, basic chemicals. We have also increased a lot many products on those lines and many more customers are adding on day by day. Further, there is a shift of the. Market in detergents from earlier like it. Was mainly cake market, then it became powder market. Now more or less everything is turning into liquids, detergent liquids. I mean internationally though already the people have started using the pods which gets auto dissolving in the washing machine itself. India is a little bit late on. That, but eventually that would also happen. So yeah, there is a shift in the product mix and we also being, you know, making sure that we grab. These new new range of product lines also to make sure that we keep. Winning and the orders. So that’s about it.
Devinder Kumar
Okay, so Terry, detect any cancellation of orders like from the tax side. We are hearing a lot any point. Of view from you.
Sanjay Tibrewala
So actually speaking let’s put it on. A way like let’s say 10 years. 10 days before, like 10 days prior to today there was almost equal taxations by USA right? From like Bangladesh is 20, India is 25, Pakistan is 19. India has its own segment like bed sheets, home textile and Bangladesh has its more in the garments. But the kind of quality of Bangladesh and India is little different on those lines. So that was the way it was going on. In fact till now these garment companies. Or the textile companies are only paying 6% duty. So in fact the new rise of 25% is still, I mean even the previous rise of 25% has not been affected till now. So there is no question about further 25% happening immediately. Having said that India has opened up with UK. UK is itself 40% of the textile demand of USA. And it looks like you know already the companies of like the garment companies of India and others have started taking substantial orders in UK So by and. Large we don’t see it’s easy. So firstly USA can never produce the fabrics. Okay? They can, they would like a. They are like the marketplaces. They are not the factories or the production because the labor is very high. It’s a polluting line as well. So basically they have to turn to Bangladesh, India, Pakistan or countries like them. So this is the place where we are as such our direct exposure to us is negligible. However, if Indian textile companies who are exporting to USA if their orders gets. Postponed then in that way we can also have slightly modifications in the order dispatches. But till now there is no news at all. Everybody is having their own set of. Dispatches and everything is going quite normal. And smooth even as we speak. So it’s a very long story to predict what is going to happen. But I think India is in the. Right shape from all angles and we don’t see it as a threat right. Now we in fact are looking at opportunities where this is the time where we are able to go to the customers and show them some more sustainable solutions or price sensitive product lines and to replace our European co producers who are already having a major share in these textile corporates. So we are using as an opportunity from that angle.
Devinder Kumar
Okay. Okay sir. Thank you sir.
Sanjay Tibrewala
Thank you so much Devendraji.
operator
Thank you. A reminder to all participants. Anyone who wishes to ask a question may press star and one on their touchtone telephone. Our next question is from the line of Vinay Nadkarni from Hatwaid. Please go ahead.
Vinay Nadkarni
Yeah Sanjay, just one question on this mosquito repellent thing that you have mentioned across like any business flowing in from there.
Sanjay Tibrewala
So actually you know, this product is made in Malaysia. We have sales, very low level of sales in certain countries over there, which is not going for government applications. However, in India the plan is little different because in India it’s more controlled by government and others and in fact every country. This is the way it works. Right now there’s a process which we have cleared. We have cleared a major hurdle of it, which was cip. Then we have a approval report from. Hopkins and it is really very encouraging reports. Actually now we are tying up on certain grounds there is some factory verification. Process and approvals also, which is ongoing. We feel that in a month or. Two months time maximum, we should be. In a position to start beginning to see certain kind of progress on that. Numerical progress, commercial progress.
Vinay Nadkarni
Okay. And secondly on this, US tariffs, Malaysia has 19%. So are you exporting from Malaysia to US or there is no exports going on from there?
Sanjay Tibrewala
Actually, I would like to mention in. To all the participants. I mean USA doesn’t produce or process. The textiles or garments. They are more like a marketplace like the Walmart targets. Turner, Bianca brand stops that.
Vinay Nadkarni
That doesn’t, that doesn’t work.
Sanjay Tibrewala
It doesn’t matter. It doesn’t matter. I mean directly, it doesn’t matter. Yeah, correct.
Vinay Nadkarni
Correct. Secondly, on this new plan that you have commissioned 15,000, what is the order book?
Sanjay Tibrewala
I mean the idea here is not about exactly having the order books in hand. The idea here is to start off. Because like when we started this, the previous plant four years back in 2021. November that time also it took almost. Two years to begin the plant and then we commissioned it and then we could scale IT up from 20,000 to 40, 40 to 61,000. The plan and the, you know, the. Time involvement is mainly in the initial days and later you can always have a staggering growth on it. At the same time there are a lot of new technologies and processing and scale of operations which we are going to bring about, which are going, which is going to help the company in reducing, have better storage, better kind of quality, better kind of processing. So all in all there are a lot of many advantages, not only from the production capacity point of view. And as I said already all these products are fungible. The capacities are totally fungible. These products can be produced in our existing facilities as well as the new facilities. It’s not added only for a particular segment.
Vinay Nadkarni
So in quarter one, what would be the capacity utilization of our. Because that was not the time when your new plant was commissioned. Right. So out of 105, what was the capacity utilization for Q1
Sanjay Tibrewala
so it’s almost 59%.
Vinay Nadkarni
Okay. So the cost would go up but your Q2 margins will get impacted because of this new plant commissioning.
Sanjay Tibrewala
Actually before the plan gets commissioned six months before itself there’ll be a lot of other kind of cost, revenue, expenses. Etc and for the sake of you. Know getting the credit of the GST we would always like to go for the revenue, not for the capex kind. Of things at the same time, you. Know, so the expenses are already been. Levied since almost six months or something like that. You know the revenue expense and other things to begin at the pre mini. Cost etc but actually overall if you see. Yeah, so I mean that is not a significant cost actually you know it’s not. Our businesses are not driven on low margins or you know like production capacity utilizations. We have to be ready. We have more than 1500 SKUs. There are certain products like and we are adding more and more chemistries as well. Certain products are made after one day or two days of batches so that are made in two, three hours. So in case we get orders and do we do get of orders of products which have a longer production cycle now for that we will always have to have that much room in production utilization.
Also keep in mind the production capex required and the cost per ton is not significant for the company and all. Of them is, you know, it’s done. It’s a debt free company, there is no loans on it for the expansion as well. And the optimum capacity utilization generally is not above 75 in the practical way because there is a lot of SOPs involved for the cleaning and we have to make sure there is no contamination. No, you know, because there are a lot of reactions which happened before in the same because the capacities are fungible. So there are products which are made before the batches which has to be well cleaned and with the SOPs. So it consumes a lot of time.
Yeah. So practically this is the right solutions and this is the way we have. In fact when we started the Banath. One in 2021 that time the capacity. Utilization of the Mahape plants and the. Malaysia plant was below 52%, something like that. But gradually we could scale it up and you know then there are a. Lot of new big customers and corporate. Global companies which visit us, they see the facility, they see the kind of infrastructure you have and then only they like to do the tie up. All in all there is a lot of importance to get the customer approvals, plant approval which also gets endorsed along with and then we get the businesses. So it’s a long process. It has been done at the right time at the. Within the cost limits and within the expected timeline. So the team has done a good job on this.
Vinay Nadkarni
Okay. Can I ask one last question?
Sanjay Tibrewala
Yes, Vinay. Yeah, please.
Vinay Nadkarni
Yeah. So can I get a revenue breakup for this quarter between Textile, Chemicals, fmcg, Water treatment and oil and gas?
Sanjay Tibrewala
Oh yeah, surely you, you would be. I can. You want it right now.
Vinay Nadkarni
Okay. So I can just. I.
Sanjay Tibrewala
Right now. Okay. I mean the. From the volume point of view, 70%. I think this question will arise again in few minutes. So rather I share with all participants now. So in, in a nutshell, the volume basis Textile is almost 70% in the. Quarter one health and hygiene, SNCG is. Almost 25% and the remaining drilling is almost 5%. I mean drilling is oil and gas, others. And in terms of, in terms of the revenue mix, the 80% is textile.
Vinay Nadkarni
Okay. And FMCG would be balanced.
Sanjay Tibrewala
No, no. I mean, no, the drilling has picked up. Actually drilling has picked up to 4% already. And yeah, and there is a significant value growth in our oil areas also. We have in fact gone 2.52, 2.5x. Compared to our last quarter. Okay. And if you compare furthermore it is almost like 10x plus. So that is something growing. So I mean that, that ratio will not help you because that’s just coming up. So every time we’ll see, you know, much larger than x28 growth every time. Yeah.
Vinay Nadkarni
Okay. Thanks a lot. Thank you very much.
Sanjay Tibrewala
Thank you so much, Vinay. Thank you.
operator
Thank you. Our next question is from the line of Anupam Agarwal from Lucky. Please go ahead.
Anupam Agarwal
Yeah. Hi, good evening. Thank you for taking my question. Sanjay. My first question is again extending to the last participant’s question. Not financially but more directionally. Last year we had seen a bit of a challenge and a pain point in the FMCG business both on volume and in value. What, what, what, what is happening this year? Are we seeing some sort of turnaround, some color on that aspect?
Sanjay Tibrewala
So to give you some more color, what has recently happened in this quarter itself we have initiated successful orders, trial orders for big corporates. And those are trial orders. I mean trial orders are also like tanker load orders for a couple of product lines which is going in the liquids. So this is something which has triggered new era of, you know, the new businesses, new kind of development. At the same time there has been further changes in the product mix. And we are, we are quite confident that the Coming times are going to be much better in the FMCG area where companies have started understanding the importance of sustainability once again.
At the same time there has been also a softening of certain chemical prices and so that there is a room. For them to use certain solution driven. Performance boosters where we are so till in the last six months or I mean last three, four quarters, if you. See three quarters, there has been a. Drop also because the companies were not able to sell their premium range of products. However, the more, I mean as we. Are proceeding ahead it looks like, you know, the premium range is started picking. Up again and you can see certain improvements coming up.
Anupam Agarwal
Understood. So by the end of this year we should on volume terms be able to do what we did last year at peak.
Sanjay Tibrewala
I am quite positive about that personally. By the end of the financial year, surely we should be back on that track.
Anupam Agarwal
Understood. My second question is on the water treatment. What sort of engagement and dialogue is happening with the customers on that front? Water treatment or oil and gas, particularly in the Middle east markets is where we were looking into what’s happening there. Any update?
Sanjay Tibrewala
Well, I mean the drilling oil and specialty chemicals are like that’s the area which we are very much positive. There is a shift of demand happening. The most of the biggest corporate customers of the world who are above 20. 25 billion dollar company, most of them have been mandated to shift things from China to India and there are very less number of takers in Indian chemical. Specialty chemicals to supply to this sector. So we are very much hopeful on this sector. We have been getting great response on those lines. We have been growing our businesses very well on those things and at the. Same time we have been discussing and. We are already on NDA with a lot of these big giant companies and a lot of things are in the progress. So we are very helpful, very, very. Much confident that this division will be. Very helpful and contributing to a much. Bigger pie in the total revenues of. The company and the profitability as well.
Anupam Agarwal
So to get a sense, I mean what sort of sales cycle are we witnessing in the water treatment business? Is it that once from sampling to po, is it a long process of three to eight months or what?
Sanjay Tibrewala
No, actually I’ll tell you like in the oil specialty field there is the processes, the gestation periods are very long. This is because these are like massive companies. They take a very long time to change the chemicals. There are a lot of protocols, processes, things like that. However, there are many orders which we have cleared. I mean there is a lot of huge Orders which we have got even. In this current, you know, the quarters where we are now and all of. Them are on a very, I mean decent EBITDA levels etc. So step by step we are progressing very strongly. We have started taking participations in most of the global exhibitions like in Nafti. Gas in Russia, in ADIPEC in uae. I mean in Abu Dhabi. Again we are participating there. So there is a lot of, you know, attraction coming up not only from. The product range where we have evolved ourselves. At the same time there is a big demand coming to India from all the Middle east countries, Russia particularly as well. And we are working very aggressively on those lines.
Anupam Agarwal
Yeah. And last question. Any update on the inorganic side?
Sanjay Tibrewala
Well, there are, I mean like there. Are a lot of opportunities which have recently come furthermore and we have been advancing certain discussions. We are under NDA for sure. As soon as we have certain more clarity on further advancements like before, we will always be updating all the investors through the stock exchange medium. And you know, we. We expect that this financial year. Definitely there has to be some positive news on that.
Anupam Agarwal
Perfect. Perfect. That’s it. From my side and wishing on the entire team.
Sanjay Tibrewala
And to add to that, add to. That as you already know perhaps that. You know the company has a healthy cash. Cash on bank balance which is more. Than 360 crores right now. After the capex of 117 crores in the. In the last. In the last 16 months the company has already done that much of investments. So after that this is the cash. On bank which the company is available. For any such of inorganic opportunities.
Anupam Agarwal
Perfect. Thank you so much and wishing the entire team all the best. Thank you.
Sanjay Tibrewala
Thank you Rupamji.
operator
Thank you. A reminder to all participants. Anyone who wishes to ask a question may press star and one on their touchtone telephone. Our next question is from the line of Parth Patel from Patel Investments. Please go ahead.
Parth Patel
Good evening sir. Thank you for the opportunity. Am I audible?
operator
Yeah. Perfect. Parth, please go ahead.
Parth Patel
So I just had a couple of questions. First one is on the gross margins part. So we can see that quarter on quarter and year on year we have seen decline in the gross margins. And second is following up with question. I just wanted to know what is the total utilization? Even if you can give it in a percentage manner for this quarter, that would be helpful.
Sanjay Tibrewala
Okay, so to take the last question first the Production utilization is 59% right now. Okay. Okay. And talking about the. See basically see. I mean the kind of product lines we have is like we have more. Than 1500 SKUs now. This is, you know, there are certain product lines and there are a lot of changes in the industry which keeps happening. Sometimes there are more orders for polyester products, sometimes there are more for cotton fabric, sometimes for cotton towels, etc. All the products will not have the same kind of margins. Broadly there are certain areas where, you. Know, there are sporadic demands coming up and sometimes the trend also changes. So right now this is the place. Where we have reached and we have. Also made sure that, you know, we have been gaining more visibility, getting more customer reach everywhere and making sure that we keep adding on more and more customers. Even this quarter we have added a. Lot many more customers in spite of let’s say supposedly to be having a. Little more softer quarter because of the US tariff stories. And you know, people started reducing the inventory. So this is what happens generally. Even in the COVID one we could, you know, we have all experienced that the quarter one and quarter two were significantly poor in 2021 in the year 20. And then you see in the next. Half year, which looks like to be repeating again that the next H2 will. Take care of not only the H1 but in fact it will add to. The entire businesses with some great growth. So this is what we had experienced in 2020 then when the all the. Buying houses reduced their inventory and purchases. And this is similar what has happened in spite of that. Our company has a team has able. To grow the businesses across the sector. In the specialty oil as well as. The textile specialty hygiene has grown from. The previous quarter itself, but not to the quarter one level of last year. That’s okay, that’s fine. But we actually, the most important thing is that we have not lost any. Customer, any important customer. We have never lost nor we have lost any important product of the customer. There has been change in the product mix and sometimes what happens when there is a product mix changes. It takes little bit of time to get into that kind of a product combinational play. At the same time sometimes there is some ratio changes in the industry which keeps happening. So we always need to be taking those things into account. But this is not the first time that we are experiencing in the last 56 quarters of being listed the company. Has, I mean everyone has seen ups. And downs in chemical markets of supply shortages, China plus one, Covid etc. But the company has always been able to navigate strongly improve its credibility for the customers, etc. And I think that’s something which we take it up as a challenge and keep growing and keep doing our best.
Parth Patel
Under Sutta. And if you could just give some more light on the gross margins part.
Sanjay Tibrewala
Yeah, so that answer was regarding the. Gross margins that you know there are always a fluctuation of the kind of businesses like say let’s say probably still. Started growing more and whenever polyester grows more the consumption of the chemicals is. Slightly lower as well as it is. Not as profitable as in cotton. This is just one of the examples just to explain you. There is always a fluctuation in the trend. It’s not that we have reduced our prices at all. It’s not that you know, we had to rush for getting the businesses etc. And when the markets are slightly slower we also like to gain more attention and we try to get more businesses from the customers. That’s fine. But that doesn’t mean that we have. Been intentionally reducing our selling prices. That’s not the way this industry works. Our line is more of a homeopathy solution businesses. It’s not a, you know, me too. Kind of a product where if let’s say Gujarat Narbada is reducing the price then looks equi also has to reduce the price. This doesn’t work like this. It’s more of a specialty solution driven decision. Yeah, yeah, exactly.
Parth Patel
Can, can I, can I just ask one more question?
Sanjay Tibrewala
Yeah, yeah, please, please. Yeah.
Parth Patel
So I know that since the past couple of quarters we have been doing a lot of marketing spends which has resulted into a lower ebitda. Yeah. So just wanted to know that for how many quarters it is going to continue and if it’s an ongoing process, what would be the stabilized EBITDA margin that we should.
Sanjay Tibrewala
So actually you know there are certain. Number of, I mean certain periods in. Our previous history also let’s say if. You consider 20, 19 and 18 where the company had added a lot, many salesforce technical experts pan India, in Bangladesh etc at the same time done a lot of geographical presence globally exhibiting all over. So the result generally, you know, comes in a couple of years. Surely there is also brand building process which the company keeps doing and this. Is something which we have again done. So I think in the coming times we can go back to the original EBITDA margin level which we have seen. In the last four, five years.
Parth Patel
Got it. So let’s say for the next couple of years we can keep it at around 18 to 20% and then after that we can continue with the 24, 25% that we have been doing.
Sanjay Tibrewala
We will try to bring it up as soon as possible. It all depends on the external factors also. So sometimes. So basically, you know, we are, you know, even if the businesses, what we. Have acquired now is also based on. The our internal performances, it’s not that the customers demand have gone up actually. Okay, so once the external factors are also helping and supporting the industry in a general way, we are very sure the consumption pattern per customer is going to go up. When that happens, you will of course see a better, the same kind of expenses, you will see a better kind of gross margins in absolute numbers, EBITDA numbers, absolute numbers. So automatically the EBITDA margins etc will also be much better. The cost of the company will be fixed going forward.
Parth Patel
Got it. And just for the sake of repeating, can you just let me know what, what the plan is on the inorganic part?
Sanjay Tibrewala
I mean there are two things I would like to mention. The company has already done an inorganic acquisitions in 2011. So after listening on 11 March 2011. Within three months of the listing, we. Have used the IPO proceeds to acquire. Stake in a European specialty chemical company. Producing the same range of chemicals which. Has synergy with Finotech and it’s been produced in Malaysia. The concept was to have the Asian cost and the European technology. That’s what everyone is looking at in right now. Nobody wants the European cost, everyone wants the European quality, but they want the Asian cost. So Biotechs has been one of those. It’s founded by Europeans, it is still co owned by Europeans and Germans who. Are holding 28% stake in the company. Living in Dusseldorf in Germany and shuttling around and taking care of Biotechs as the CEO as well. So in that was our first, you know, international meeting acquisitions and the company. Has, there has been a lot of synergy. So what we look in an organic. Acquisition opportunity is firstly as you see we are very cash disciplined and we. Are not so gracious enough in, you know, in giving very high valuations to the, to the target. So we would love to we look. At companies which has synergy in our businesses either in the target markets verticals or in the similar kind of chemistries which we are already doing. And after that there has to be. A certain value which can justify in case a company borrows the money from the bank and pays let’s say 9% interest. So there has to be and definitely an EBITDA accredited from day one of the acquisition. That’s what we look at. Of course the other hygiene checks and the debts etc book values, of course the other ratios and things should be very healthy and it should be Sustainable and most important, it should be a business which we can drive it and there has to be a good synergy amongst it. So I can only tell you about these kinds. What are we looking at? This is what we are looking at. In the last two, three years we. Have reached to very advanced level of discussions with certain companies. Plus in the last quarter also we. Have reached to advanced level of discussions. It’s still under NDA. Okay. A lot of due diligence has been happened in the past. There are a lot of negotiations going on, things like that. In fact I. This is in fact the right time to look at companies because due to. This global, let’s say not so great. Scenario, most of the companies might not be doing so well. And maybe that has also reduced the target’s expectations. We are, I mean this is just a general discussion. I’m not. So I think this is the right time for companies like us to go for the acquisitions. Because this, this is a good real time to buy. And as you can also see that we have already raised the finance last year pref where the promoter has also contributed almost 44 crores. And going forward I think that’s the. Right way to look at the company in the. In the coming times. So we are in the right direction. And we are just looking to find the right match for the company and going forward.
Parth Patel
Understood, sir, thank you so much for answering my questions and I wish you all the best for the future.
Sanjay Tibrewala
Thank you Parth.
operator
Thank you very much. A reminder to all participants. Anyone who wishes to ask a question may press star and one on their touchtone telephone. I repeat, anyone who wishes to ask a question may press star and one on their touchtone telephone. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our next question is from the line of Bhavan Soni from BNK Securities. Please go ahead.
Bhavin Soni
Sir, can you help me with the revenue mix for the quarter and FY25 between TSC and FMCG. And if oil and drilling is any last year and this quarter.
Sanjay Tibrewala
So basically like the revenue mix is. Almost 80% is textile and so yeah. The remaining is hygiene, FMCG drilling all. Put together is almost like 20%. In the quarter one. Yeah.
Bhavin Soni
Okay, thanks.
operator
Thank you. Our next question is from the line of Ravi, an individual investor. Please go ahead.
Ravi
Sir. I wanted to know the market size of mosquitoes. Mosquito product that we are targeting. What is the. The potential market size?
Sanjay Tibrewala
Well, it’s a very difficult point to mention right now. I can only mention to you the products which it replaces is like BTI. And Abate and MLO which is also. Known as Amo anti material oil. In many countries it is known as this. So basically if you just consider the. Kind of subsidies, not even subsidies, I. Can say the NGO markets for this. Which are financed by big foundations. The data which we had as per the Google was It’s, I think $2 billion was the, you know, the kind. Of given by the NGOs or the. Distribution of these product lines. These businesses are very big. I’m talking of global demand. However, you know this has, this is. A lot of steps. It’s a big thing and this is. The first time like you know, it’s very ecologically proven. It is proven by Hopkins also. Hopkins is one of the oldest institutes. Which had also detected vector bone solutions. For plague 120, 30 years back. So we have very strong approvals from them and they are also very much charged that these kinds of businesses should. Be, you know, approved by the government. Very soon and there has to be distribution. So we are in the process of. That now, see how it goes.
Ravi
Yeah, and sir, your product is eco friendly. So I think no, no other product is there in the market. You, I think your product is more superior and eco friendly. So are there other products that are eco friendly in the market?
Sanjay Tibrewala
So right now what is happening is Abate, BTI and amo, MLO all are these products which are based on basically crude oil derivatives. So these are not only harmful for, I mean the same water comes in for the human consumption also but at the same time it damages, affects a lot of aquatic life. Although this, there is a very small short life of these products.
It doesn’t work in barkish water. So this is one step advancement. In fact this has been proven by Institute of Medical Research in Malaysia in 2008 onwards biotech Malaysia was developing this one. When we entered this company in 2011 it was not yet commercialized and there was a lot of trials and discussions going on with the government there, vector bone, etc. Finally in 2015 they had given us. The approval of that product. Then it took more years, number of years to get this kind of approval, that kind of approval. So there was a lot of time which has gone into that businesses. So and India is not a, you know, it’s not so easy to do in the terms of government approvals and government there’s a big process and protocols which we have to progress, we have to focus. So that’s all we are doing right now. I think major, I think a Major. Work has been done. There is a lot of work still left out but I think it’s in the right direction.
Ravi
And then if, if anybody buys. Last question, last question. Man, please. Please. Sir, last question.
operator
I request you to rejoin the queue for more questions. Sir, our next question is from the line of Kautuk Yem Day from Axonown Investments. Please go ahead.
Kautuk Yemdey
Hi sir. Thank you for taking my question. Most of my questions have been answered. I just wanted to know one thing. Like in one of your answers you replied that the prices have come down. So did we take any inventory right now in this quarter?
Sanjay Tibrewala
Could you repeat? Sorry, what has come down?
Kautuk Yemdey
You mentioned that chemical prices have come down in this quarter.
Sanjay Tibrewala
What I mentioned is. No, no, no, no. What I mentioned is that in the detergent businesses the prices of basic chemicals. Have slightly gone down which allows these. Companies, the detergent FMCG companies to use premium performance boosters and such solutions which. Can enhance their product line more because. Ultimately they cannot pass the increase to the consumers, the FMCG companies. So right now there is a. As a scope of adding more of. Our performance boosters which will automatically increase our output then. So that’s the way it is.
Kautuk Yemdey
Okay, so we did not take any inventory write downs.
Sanjay Tibrewala
No, no, no, no. Not. Not that way. No, no, that was not what I meant.
Kautuk Yemdey
Yeah right. Okay. Thank you.
Sanjay Tibrewala
Thank you Kastuk.
operator
Thank you ladies and gentlemen. The next question is from the line of Vinay Nadkarni from Hatwei. Please go ahead.
Vinay Nadkarni
Yes, one last question. Since we are so heavily dependent on textile chemicals. If this US tariff doesn’t really go away and really impacts. You see a major problem coming in Q3, Q4.
Sanjay Tibrewala
So basically I would like to mention like. Like India is the biggest market right now with 1.5 billion people. And this is totally taken care by domestic business. You know the domestic. I mean domestic production only number one. Number two, UK has opened up which is 30% of us. And the third thing is the quality of India is totally different compared to Pakistan or Bangladesh. In fact the product mix are also not exactly overlapping when you talk about GSMs and other things. And number three, us can never make these kinds of product. It’s. It’s impossible.
I mean it doesn’t fit to their. There is more of consumption based businesses. They are not a production houses. So I. In fact we don’t foresee such things happening. Number one, even if it so happens we are already very strongly present in Bangladesh. We have an office. We are adding more and more team members. Also if the Market doesn’t come here, it goes there. So that doesn’t change our focus areas. At the same time we are working. With almost 70 countries right now and. We have our distributor customers everywhere the market even if it moves from one. Shop to another shop, we are you. Know already available every place. So it doesn’t mean a great, you know, a problem to us right now.
Vinay Nadkarni
Okay, thank you. Thanks a lot.
operator
Yeah, thank you. Our next question is from the line of Patel from Patel Investments. Please go ahead.
Parth Patel
Hi sir, thank you for taking the question again. I just had one last question. So if we see historically our FMCG used to be the dominant part of the revenue mix about 60% or so if I, if I remember currently and now it has come down to about 20, 25%. So I just wanted to know that why this changed happened over the last few years. Was it Covid or was it some other factor that come in play?
Sanjay Tibrewala
No, actually what has happened is we had a new subsidiary in Finotex itself and we have the 115Bab, you know the tax benefits also for the new investments in the company. So a lot of our businesses has. Also been started in the new, new this thing new entity which is under India itself. So there has been a modification, let’s say there has been a reduction in the standalone but in the India console or maybe the entire console you will see that much that business has been shifted around there also.
Parth Patel
Got it, got it. But that answers my question. Thank you so much.
Sanjay Tibrewala
Thank you so much.
operator
Part thank you ladies and gentlemen. Due to time concerns I now hand the conference award to Mr. Sanjay Timrewala from Kohler for closing comments. Thank you sir. Thank you. And over to you sir.
Sanjay Tibrewala
Thank you everyone. Thank you participants for joining in. I would like to thank our employees, customers, investors and all the stakeholders for their continued support and trust in Finotech. Our journey so far has been one. Of the most resilience, adaptable, innovative and. We are doing our level best as always and we are very much committed to create a long term value for all of the investors. And if our we are very much open. If you have any more further questions kindly let us know. You can write to us or our. Investor relation company AT Tractors and we. Our team will be very much excited to answer with all your questions with the maximum information we can do. Thank you everyone. Thank you. Good evening once again. Bye bye.
operator
Thank you on behalf of Finyutex Chemical Ltd. That concludes this conference. Thank you for joining us. And you may now disconnect your lines.