Mumbai-based specialty chemical producer expands international footprint through 53.33% stake in croresudeChem Technologies, while reporting improved quarterly profit despite margin compression.
Fineotex Chemical Limited (NSE: FCL) reported a 45.9% year-on-year increase in consolidated revenue from operations for the third quarter ended December 31, 2025, reaching ₹183.71 crores. The significant growth was primarily driven by the completion of a strategic acquisition in the United States and a 39% increase in consolidated business volumes. While profit after tax improved, operational margins moderated during the period as the company integrated its new international holdings.
FCL Expands Global Capacity Through US Acquisition
During the third quarter, FCL acquired a 53.33% controlling stake in CrudeChem Technologies Group (CCT Group), a US-based manufacturer of advanced chemical fluid additives for the oil and gas sector. The acquisition adds 80,000 MTPA of manufacturing capacity across facilities in Brookshire and Midland, Texas, bringing FCL’s total global capacity to 200,000 MTPA. In a separate development, the company received approximately ₹35.68 crores from the conversion of 75% of outstanding warrants, with promoters exercising 5,00,000 warrants for a consideration of ₹17.30 crores. FCL also completed a 4:1 bonus share issue and a 1:2 stock sub-division during the fiscal year.
Quarterly Financial Results
Consolidated profit after tax (PAT) for Q3 FY26 rose 8.21% year-on-year to ₹30.12 crores, compared to ₹27.83 crores in the corresponding quarter of the previous year. Total income, which includes other income of ₹6.75 crores, reached ₹190.46 crores. EBITDA (excluding other income) stood at ₹34.84 crores, representing a marginal 1.59% increase over Q3 FY25. Consequently, the EBITDA margin compressed to 18.96% from 27.23% a year earlier. The company maintained its status as a debt-free entity and reported a Return on Invested Capital (ROIC) of 26.82%. Return ratios, including ROE and ROCE, showed temporary moderation due to the higher capital base following recent fund-raising activities.
Business Outlook and Operational Strategy
FCL’s management is pursuing a diversification strategy to reduce reliance on the textile sector by expanding into oil and gas, water treatment, and cleaning and hygiene verticals. The CCT acquisition is expected to serve as a scalable platform for proprietary and ESG-focused oilfield technologies, targeting major industry clients such as Halliburton, ExxonMobil, and Baker Hughes. The company continues to prioritize sustainability, with “green chemistry” currently accounting for 44% of its revenue. Operational priorities include increasing wallet share from existing customers and expanding the detergent market’s share of sustainable products.
Trade Agreements Boost Indian Specialty Chemical Exports
The specialty chemical sector is expected to benefit from emerging trade frameworks between India and major economies. Trade agreements with the United Kingdom, European Union, and United States are projected to enhance export competitiveness through tariff rationalization and smoother supply chains. Specifically, the removal of 8–12% tariffs on Indian textile exports to the UK is anticipated to drive demand for FCL’s dyeing and finishing agents. Furthermore, increased energy sector cooperation under the India-USA bilateral framework is expected to stimulate demand for drilling and midstream specialty chemicals. FCL remains positioned to leverage these agreements to increase its export presence in high-value developed markets.