Fine Organics Overview
Third-party aggregators (ZoomInfo) place the company in the 501–1,000 employee band, and Revelio Labs estimates roughly 1,037 in 2026. Treat all third-party figures as estimates; the company's annual report BRSR is the authoritative source.
Fine Organic Industries is India's largest manufacturer of plant-derived, oleochemical-based specialty additives, and one of a small number of focused global players in the niche. From four manufacturing clusters in Maharashtra (Dombivli, Ambernath, Badlapur and Patalganga) and an R&D centre in Navi Mumbai, it produces more than 600 products: slip, antistatic, antifog and processing additives for polymers; emulsifiers and bakery improvers for food; and functional additives for cosmetics, feed, coatings, inks, rubber and lubricants. Exports account for 55–60% of revenue. The company is promoter-controlled (75%), debt-free in practice, and holds roughly INR 1,450 crore of cash. Profitability is structurally high for chemicals (FY26 EBITDA margin about 20%; ROIC about 25%) because it sells low-volume, high-criticality additives into large customer formulations. With existing plants largely full, growth now depends on a INR 700–750 crore JNPA SEZ plant (H2 FY28), a planned US plant in South Carolina, and newly consolidated Malaysian and Thai units.
Company's own description (FY26 investor release, paraphrased): Fine Organic describes itself as the largest manufacturer of oleochemical-based additives in India and a strong player globally. It produces a wide range of specialty plant-derived additives used in food, polymer, cosmetics, paint, ink, coatings and other specialty applications. It also highlights a strong distribution network in India and abroad, with state-of-the-art manufacturing facilities in Maharashtra. The FY26 release cites more than 600 products across food, polymers, cosmetics, feeds and coatings.
What the company does. Fine Organic converts vegetable-oil-derived feedstocks into functional additives through esterification, amidation and related chemistry. Typical feedstocks are fatty acids, fatty alcohols and glycerine, largely derived from palm and other vegetable oils. These additives are used in small dosages, typically well under 1–2% of the customer's formulation. They deliver a specific performance attribute: slip and anti-block in plastic film, static dissipation, anti-fog in food packaging, emulsification and shelf-life in bakery and confectionery, dispersion in coatings and inks, and mould release and lubrication in polymer processing.
Business model.
Revenue model: Essentially 100% product sales, invoiced per tonne. There is no material service, subscription or licensing revenue. The company provides technical application support, but this is bundled into product pricing and not separately monetised. The FY26 release reports a single line of "revenue from operations".
Pricing mechanics: Prices broadly track feedstock (vegetable oil derivative) costs with a lag. Management and brokers describe demand as having low price sensitivity, because the additive is a small share of the customer's cost but is performance-critical. This allows pass-through of raw-material swings over time (Anand Rathi, Aug 2026; ICRA rationale notes the ability to pass on cost changes).
Value-chain position: Mid-stream specialty processor. It sits downstream of base oleochemical producers (fatty acid and alcohol makers, largely in Malaysia and Indonesia) and upstream of polymer converters, masterbatch makers, petrochemical majors, food processors, cosmetics formulators and feed manufacturers. Nirmal Bang's 2023 sector work emphasises that base oleochemical players earn mid-to-low single-digit operating margins, while Fine's specialty conversion earns gross margins of about 40%.
Customer types: Direct sales to large end-users (petrochemical and polymer majors, multinational food companies, cosmetics houses) plus a distributor network. As at 31 Mar 2023 the company reported 850+ direct customers and 180+ distributors serving more than 5,000 customers in over 80 countries. A FY26 earnings summary cites a customer base across 110+ countries.
End-markets: Plastics and polymers (packaging film, masterbatch, engineering polymers, bioplastics); food (bakery, confectionery, dairy, beverages, edible fats); animal feed nutrition; cosmetics and personal care; pharmaceuticals; paints, coatings and inks; rubber and elastomers; lubricants and textile auxiliaries.
Independent characterisation. Fine Organic is best understood as a "picks-and-shovels" specialty additives franchise. Its moat rests on four things:
-
Proprietary process know-how built over five decades, with in-house design and engineering of plants.
-
Long qualification cycles at customers, because additive changes require re-validation of film lines or food formulations.
-
Regulatory approvals for food-grade and food-contact applications.
-
Breadth of portfolio, which lets it be a one-stop supplier.
The business is capacity-bound rather than demand-bound. Since FY24, management has said that all plants except Patalganga run at full or near-full utilisation. This explains the flat revenue trajectory of FY24–FY26 despite strong balance-sheet capacity to invest. Earnings volatility in FY23–FY24 came from an extraordinary price and spread spike in FY23, when global supply chains were disrupted and European competitors faced energy shocks, followed by normalisation. The underlying volume franchise was not disrupted.
Strategy
Stated strategy themes (from investor releases, earnings calls and Directors' Report):
-
Green, plant-derived chemistry: The company positions its additives as majorly bio-based and safe, a tailwind as customers seek biobased content. The USDA Biobased certification for BioPlastics additives (Jun 2024) supports this.
-
Customer-centric R&D and techno-commercial selling: In-house R&D (Mahape) and in-house plant design and engineering are central to its competitive identity.
-
Capacity-led growth: With existing plants full, management has explicitly guided that revenue and profit growth will be largely flat until the SEZ and US plants come on stream (FY26 earnings summary, May 2026).
-
Global manufacturing footprint: Moving from an "India manufacturing + overseas distribution" model to "multi-country manufacturing" (US, Thailand, Malaysia) to reduce lead times, meet local regulatory needs and de-risk tariffs and logistics.
-
Selective inorganic growth in the core: The Oleofine (Malaysia) acquisition was described as aligned with the company's growth strategy and within its main line of business.
Medium-term targets and guidance. The company does not publish formal multi-year financial targets. Management commentary as reported by brokers:
-
broadly flat volumes until new capacity arrives;
-
EBITDA margin sustainable in an 18–20% band (CompoundingAI summary of management commentary; Q1 FY27 margin of 25.3% exceeded this);
-
SEZ commercial operations in H2 FY28;
-
US plant 18–24 months after construction start;
-
Patalganga at full utilisation in FY27.
No cost-reduction programme with quantified targets has been announced.
Products & Services
Disclosure limitation. Fine Organic sells more than 600 grades (FY26) under the "Fine Organics" umbrella brand, but its listed-company disclosures do not publish a SKU-level price list or grade-by-grade launch dates. The catalog below is organised by application family as presented by the company and in its offer documents and investor presentations. Product counts have grown from about 450 (FY2021–22), to 470+ (31 Mar 2023), to 600+ (FY2026). Pricing is per-tonne, contract or spot, linked to feedstock; no list pricing is disclosed for any product.
5.1 Polymer and plastic additives (largest family by company commentary; historically core to the franchise)
5.2 Food additives
5.3 Feed nutrition additives
5.4 Cosmetics, personal care and pharmaceutical additives
5.5 Coatings, inks and specialty applications
5.6 Services. Technical application support, joint development with customers and custom synthesis are provided as part of the product offering. These are not separately priced or disclosed as revenue.
Flagship offerings. By the company's own historical positioning, the flagship franchise is polymer slip and antistatic additives, where it claims pioneer status in India. The strategic growth flagship is food emulsifiers, supported by the Patalganga food-grade plant and the Malaysian food-additive acquisition (OFM).
Product Portfolio
| Product line | Function / key capability | Target customers | Notes |
|---|---|---|---|
Slip additives (fatty acid amides, e.g., erucamide- and oleamide-type) | Reduce coefficient of friction in polyolefin films and closures | Film converters, masterbatch makers, polyolefin producers | Company describes itself as the first to introduce slip additives in India |
Anti-block additives (organic, amide-based) | Prevent film layers sticking | Packaging film producers | Often co-sold with slip additives |
Antistatic additives (glycerol monostearate- and ethoxylated amine-type chemistries) | Dissipate static charge in films and moulded parts | Packaging, electronics packaging, moulders | — |
Antifog additives | Prevent condensation fogging in food-packaging and agricultural films | Fresh-produce packaging, greenhouse film makers | — |
Lubricants and processing aids (internal / external) | Improve melt flow and mould release in PVC and engineering plastics | PVC compounders, injection moulders | — |
Dispersing agents | Pigment and filler dispersion in masterbatch | Masterbatch makers | — |
Mould-release agents | Demoulding in polymer and rubber processing | Moulders, rubber processors | — |
BioPlastics additives | Additives tailored for bio-based / compostable polymers | Bioplastic compounders, sustainable packaging brands | USDA Biobased certification received June 2024 |
Rubber and elastomer additives | Processing aids, dispersion and release for rubber compounding | Tyre and technical-rubber makers | — |
| Product line | Function / key capability | Target customers | Notes |
|---|---|---|---|
Emulsifiers (mono- and diglycerides / distilled monoglycerides and other ester-based emulsifiers) | Emulsion stability, crumb softness, aeration, anti-staling | Bakery, confectionery, dairy, edible fats, ice cream | Food-grade Patalganga plant commissioned FY23; still ramping toward full utilisation in FY27 |
Bread improvers and bakery blends | Dough conditioning, volume, shelf-life | Industrial and artisanal bakeries | Indian bakery premixes are also addressed via Fine Zeelandia JV |
Antifungal / preservative additives | Mould inhibition and shelf-life extension | Bakery and food processors | Listed in company business descriptions |
Beverage clouding agents | Opacity and mouthfeel in beverages | Beverage makers | Listed in company business descriptions |
Other food additive blends | Customised functional blends | Multinational food companies | Customer-specific formulations |
| Product line | Function | Target customers | Notes |
|---|---|---|---|
Feed nutrition additives (fat-based energy and nutrition enhancers, emulsifiers for feed) | Improve feed energy density and nutrient absorption | Animal-feed manufacturers, integrators | Specific grades not disclosed |
| Product line | Function | Target customers | Notes |
|---|---|---|---|
Emollients, emulsifiers, thickeners and opacifiers (ester-based) | Texture, stability and skin-feel in creams, lotions and hair care | Cosmetics and personal-care formulators | Competes with Croda, BASF Care Chemicals and Galaxy (specialty care) |
Pharmaceutical excipient-grade additives | Lubricants and emulsifiers in solid and topical dosage forms | Pharma formulators | Scale not disclosed |
| Product line | Function | Target customers | Notes |
|---|---|---|---|
Coating additives (wax and amide-based) | Slip, mar resistance, matting, dispersion | Paint and coatings makers | — |
Ink additives | Rub resistance, slip, dispersion | Printing-ink makers | — |
Lubricant / metalworking additives | Friction modifiers and lubricity | Lubricant blenders | — |
Textile auxiliaries | Softening and processing aids | Textile chemical formulators | — |
Financial Detail
Results by Segment and Segment Margins & Growth (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Segment revenue: oleochemical additives (INR Cr) | 1,876.3 | 3,023.1 | 2,123.0 | 2,269.1 | 2,365.8 |
Segment operating income / EBIT (INR Cr, S&P) | 325.8 | 783.2 | 477.9 | 460.6 | 427.7 |
Segment pre-tax income (INR Cr) | 351.5 | 841.0 | 544.1 | 555.2 | 542.9 |
Segment EBIT margin (%) | 17.36 | 25.91 | 22.51 | 20.30 | 18.08 |
YoY revenue growth (%) | 65.57 | 61.12 | -29.78 | 6.89 | 4.26 |
Share of total revenue (%) | 100 | 100 | 100 | 100 | 100 |
Group Entities
| Entity | Country | Relationship | Stake | Role |
|---|---|---|---|---|
Fine Organic Industries Limited | India | Parent (listed) | — | Manufacturing (Dombivli, Ambernath, Badlapur, Patalganga), R&D, domestic and export sales |
Fine Organics (USA), Inc. | USA | Wholly owned subsidiary | 100% | US sales and distribution |
Fine Organics Europe BV | Netherlands | Wholly owned subsidiary | 100% | European sales and distribution / warehousing |
Fine Organic Industries (SEZ) Private Limited | India | Wholly owned subsidiary | 100% | Greenfield export-oriented plant at JNPA SEZ (under construction) |
Fine Organics Americas LLC | USA (South Carolina) | Wholly owned subsidiary (incorporated Q1 FY26) | 100% | Proposed US manufacturing plant, Jonesville, Union County |
Fine Organics FZE | UAE (Dubai) | Wholly owned subsidiary (incorporated Q3 FY26) | 100% | GCC presence and supply-chain efficiency |
Oleofine Organics Sdn. Bhd. ("OFM") | Malaysia | Subsidiary from 9 Sep 2026 | 80% | Food additives / specialty chemicals |
Fine Organic Industries (Thailand) Co., Ltd. ("FOIT") | Thailand | Joint venture until 9 Sep 2026; subsidiary thereafter (control with OFM) | Direct stake not disclosed; >50% voting control with OFM | Super-specialty product manufacturing (trial / ramp-up phase) |
Fine Zeelandia Private Limited | India | Joint venture with Zeelandia International | 50% | Bakery premixes and improvers for Indian market |
Segment Margins & Growth (%) and Per-Share Data
| Metric | Q1FY26 | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|---|
Revenue from operations | 588.4 | 597.3 | 554.8 | 625.3 | 694.2 |
EBITDA (company-reported) | 123.6 | 135.2 | 94.4 | 129.8 | 176.0 |
EBITDA margin (%) | 21.0 | 22.6 | 17.0 | 20.8 | 25.3 |
PAT | 117.1 | 108.6 | 73.9 | 117.5 | 138.1 |
EPS (INR) | 38.19 | 35.41 | 24.11 | 38.32 | 45.06 |
Income Statement and Per-Share Data
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Revenue from operations (INR Cr) | 1,876.3 | 3,023.1 | 2,123.0 | 2,269.1 | 2,365.8 |
Total income incl. other income (INR Cr) | 1,909.2 | 3,087.2 | 2,194.8 | 2,366.7 | 2,482.5 |
Gross profit (INR Cr) | 675.3 | 1,223.5 | 886.7 | 920.6 | 924.3 |
Operating income / EBIT (INR Cr) | 325.8 | 783.2 | 477.9 | 460.6 | 427.7 |
EBITDA S&P-standardised (INR Cr) | 365.4 | 830.5 | 531.5 | 509.4 | 474.9 |
EBITDA company-reported (INR Cr) | — | — | — | 512.9 | 483.0 |
Interest and investment income (INR Cr) | 6.3 | 11.2 | 48.1 | 72.6 | 84.9 |
FX gain (INR Cr) | 24.4 | 49.9 | 23.3 | 24.2 | 28.0 |
Pre-tax income (INR Cr) | 351.5 | 841.0 | 544.1 | 555.2 | 542.9 |
Income tax (INR Cr) | 91.8 | 222.9 | 132.2 | 144.7 | 125.9 |
Net income (INR Cr) | 259.6 | 618.1 | 411.9 | 410.5 | 417.1 |
EPS basic (INR) | 84.67 | 201.60 | 134.34 | 133.89 | 136.03 |
EPS diluted (INR) | 84.67 | 201.60 | 134.34 | 133.89 | 136.03 |
Dividend per share (INR) | 9 | 9 | 10 | 11 | 11 |
Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Gross margin (%) | 35.99 | 40.47 | 41.77 | 40.57 | 39.07 |
Operating (EBIT) margin (%) | 17.36 | 25.91 | 22.51 | 20.30 | 18.08 |
EBITDA margin S&P (%) | 19.48 | 27.47 | 25.04 | 22.45 | 20.08 |
EBITDA margin company-reported (%) | — | — | — | 22.6 | 20.4 |
Net margin (%) | 13.84 | 20.45 | 19.40 | 18.09 | 17.63 |
Effective tax rate (%) | 26.12 | 26.50 | 24.30 | 26.06 | 23.18 |
Revenue growth YoY (%) | 65.57 | 61.12 | -29.78 | 6.89 | 4.26 |
Net income growth YoY (%) | 115.76 | 138.09 | -33.36 | -0.34 | 1.60 |
Balance Sheet and Per-Share Data
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Total assets (INR Cr) | 1,236.4 | 1,806.6 | 2,107.8 | 2,510.7 | 2,998.8 |
Cash and equivalents (INR Cr) | 226.1 | 515.1 | 695.1 | 189.3 | 1,448.8 |
Short-term investments (INR Cr) | 6.5 | 8.1 | 353.4 | 760.7 | 0.0 |
Cash and short-term investments (INR Cr) | 232.6 | 523.2 | 1,048.5 | 949.9 | 1,448.8 |
Long-term investments (INR Cr) | 34.0 | 46.0 | 48.3 | 253.9 | 104.8 |
Accounts receivable (INR Cr) | 301.4 | 350.6 | 311.3 | 331.5 | 351.1 |
Inventory (INR Cr) | 235.6 | 445.0 | 260.9 | 362.9 | 402.5 |
Net PP&E (INR Cr) | 242.9 | 253.0 | 296.3 | 388.0 | 448.8 |
Goodwill (INR Cr) | 0 | 0 | 0 | 0 | 0 |
Other intangibles (INR Cr) | 0.6 | 1.5 | 1.7 | 2.6 | 3.7 |
Accounts payable (INR Cr) | 153.6 | 175.8 | 135.4 | 155.5 | 173.0 |
Short-term debt incl. current leases (INR Cr) | 33.4 | 27.7 | 1.8 | 1.8 | 10.0 |
Long-term debt incl. leases (INR Cr) | 26.0 | 0.8 | 2.5 | 1.0 | 58.2 |
Total debt (INR Cr) | 59.4 | 28.5 | 4.2 | 2.8 | 68.2 |
Net debt, negative = net cash (INR Cr) | -173.2 | -494.7 | -1,044.3 | -947.2 | -1,380.6 |
Shareholders' equity (INR Cr) | 959.2 | 1,541.2 | 1,921.0 | 2,295.2 | 2,664.5 |
Working capital (INR Cr) | 637.2 | 1,155.3 | 1,497.5 | 1,598.9 | 2,046.8 |
Book value per share (INR) | 312.85 | 502.69 | 626.57 | 748.61 | 869.06 |
Cash Flow and Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Operating cash flow (INR Cr) | 66.6 | 485.3 | 634.5 | 204.0 | 429.6 |
Change in working capital (INR Cr) | -216.6 | -122.7 | 248.4 | -168.7 | 23.9 |
Capital expenditure (INR Cr) | 60.6 | 81.1 | 86.4 | 127.6 | 142.0 |
Free cash flow (INR Cr) | 6.0 | 404.2 | 548.1 | 76.4 | 287.6 |
FCF margin (%) | 0.32 | 13.37 | 25.82 | 3.37 | 12.16 |
Dividends paid (INR Cr) | 33.7 | 27.6 | 27.6 | 30.7 | 33.7 |
Share buybacks (INR Cr) | 0 | 0 | 0 | 0 | 0 |
Net debt issued / repaid (INR Cr) | -30.7 | -35.8 | -28.8 | -2.1 | 35.1 |
Cash income tax paid (INR Cr) | 82.5 | 228.1 | 150.0 | 145.5 | 129.2 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
ROE (%) | 30.72 | 49.44 | 23.79 | 19.47 | 16.82 |
ROA (%) | 18.65 | 32.17 | 15.26 | 12.48 | 9.72 |
ROIC (%) | 35.73 | 62.82 | 37.62 | 30.59 | 24.74 |
ROCE (%) | 33.10 | 50.80 | 24.80 | 20.10 | 15.70 |
Current ratio (x) | 3.54 | 5.37 | 9.13 | 8.71 | 8.49 |
Quick ratio (x) | 2.15 | 3.37 | 7.48 | 6.24 | 6.61 |
Debt / equity (x) | 0.06 | 0.02 | 0.00 | 0.00 | 0.04 |
Net debt / EBITDA (x) | -0.47 | -0.60 | -1.96 | -1.86 | -2.86 |
Interest coverage, EBIT / interest (x) | 88.2 | 319.4 | 549.3 | 1,718.7 | 316.1 |
Asset turnover (x) | 1.72 | 1.99 | 1.09 | 0.98 | 0.86 |
Inventory turnover (x) | 6.64 | 5.29 | 3.50 | 4.32 | 3.77 |
Payout ratio (%) | 12.99 | 4.46 | 6.70 | 7.47 | 8.09 |
Working Capital (Days)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Days sales outstanding | 58.6 | 42.3 | 53.5 | 53.3 | 54.2 |
Days inventory outstanding | 71.6 | 90.3 | 77.0 | 98.2 | 101.9 |
Days payables outstanding | 46.7 | 35.7 | 40.0 | 42.1 | 43.8 |
Cash conversion cycle | 83.5 | 96.9 | 90.5 | 109.4 | 112.3 |
Income Statement and Margin Analysis (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Standalone revenue (INR Cr) | 1,858.4 | 3,029.2 | 1,951.1 | 2,205.2 | 2,276.0 |
Standalone net profit (INR Cr) | 250.7 | 590.6 | 367.6 | 389.7 | 346.4 |
Standalone net margin (%) | 13.48 | 19.49 | 18.83 | 17.67 | 15.21 |
Unlock Company Financials
Unlock this company profile to view its financial data.
View Subscription PlansRevenue by Region (%) and Revenue by Region
| Metric | FY2026 |
|---|---|
Export share of revenue (%) | 55 |
Domestic share of revenue (%) | 45 |
Export revenue, analyst-computed (INR Cr) | 1,301.2 |
Domestic revenue, analyst-computed (INR Cr) | 1,064.6 |
Valuation Snapshot
| Metric | Value | Source / date |
|---|---|---|
Last price | INR 5,150.00 | NSE close, 1 Oct 2026 |
52-week high / low | INR 5,407 / INR 3,856 | PL Capital, Aug 2026 |
1-year return | About +12% | Anand Rathi page, 28 Aug 2026 |
3-year return (cumulative) | About +11.5% | Anand Rathi page, 28 Aug 2026 |
5-year return (cumulative) | About +86.5% | Anand Rathi page, 28 Aug 2026 |
5-year high | INR 7,328.75 | Equentis (2022 peak period) |
Market Valuation and Valuation Multiples (x)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Market capitalisation, year-end (INR Cr) | 12,281 | 13,205 | 12,371 | 12,286 | 12,133 |
Enterprise value (INR Cr) | 12,170 | 13,050 | 11,625 | 11,233 | 10,986 |
P/E (x) | 47.31 | 21.36 | 30.03 | 29.93 | 29.09 |
EV/EBITDA (x) | 33.30 | 15.71 | 21.87 | 22.05 | 23.13 |
EV/Sales (x) | 6.49 | 4.32 | 5.48 | 4.95 | 4.64 |
P/B (x) | 12.80 | 8.57 | 6.44 | 5.35 | 4.55 |
Dividend yield (%) | 0.23 | 0.21 | 0.25 | 0.28 | 0.28 |
Analyst Ratings & Targets
| Broker | Date | Rating | Target (INR) | Key estimates |
|---|---|---|---|---|
Prabhudas Lilladher (PL Capital) | 10 Aug 2026 | BUY | 6,357 (from 6,001) | FY27E: sales INR 2,578.7 crore, EBITDA INR 577.9 crore, EPS INR 149.9. FY28E: sales INR 2,965.5 crore, EBITDA INR 712.1 crore, EPS INR 181.6. Valued at 35x FY28E EPS |
Anand Rathi | 11 Aug 2026 | BUY | — | Stock at 33x FY27E and 30x FY28E EPS at INR 5,121; SEZ from H2 FY28E, US from FY29E |
Motilal Oswal | Aug 2025 (stale) | SELL | 4,380 | Expected muted earnings on margin pressure |
Nirmal Bang | 27 Dec 2023 (stale) | BUY | 6,000 | Initiation on oleochemicals thematic |
Per-Share Data and Returns & Leverage Ratios (%)
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Dividend per share (INR) | 9 | 9 | 10 | 11 | 11 |
Payout ratio (%) | 12.99 | 4.46 | 6.70 | 7.47 | 8.09 |
Analyst Conclusions
Management guidance (as reported by brokers and summaries):
-
Volumes broadly flat until new capacity; growth in FY27 from price pass-through, FX and Patalganga ramp-up.
-
Sustainable EBITDA margin band of 18–20%. Q1 FY27 was 25.3%, aided by transitory factors.
-
JNPA SEZ (INR 700–750 crore capex): commercial operations in H2 FY28.
-
US Phase I: capex plan to be finalised (targeted Q2 FY27); plant ready 18–24 months after construction begins; gradual ramp-up.
-
OFM and FOIT consolidated from 9 Sep 2026.
-
Openness to debt funding for expansion.
Consensus growth expectations. PL Capital's estimates, the most recent detailed published set, imply:
-
revenue growth of about 9% in FY27E and 15% in FY28E;
-
EBITDA growth of about 20% in FY27E (to INR 578 crore) and 23% in FY28E (to INR 712 crore);
-
EPS of INR 149.9 (FY27E) and INR 181.6 (FY28E), versus INR 136.0 in FY26.
Bull case:
-
Capacity doubling at high returns: The SEZ alone carries peak revenue potential of about INR 2,600 crore (PL), more than FY26 revenue, funded entirely from INR 1,449 crore of cash. Even at a 15–18% EBITDA margin on new capacity, consolidated EBITDA could roughly double by FY30 without dilution.
-
Margin resilience has been proven through the cycle: Gross margin stayed at 39–42% from FY23 to FY26 despite a 30% revenue swing. Q1 FY27 delivered 25.3% EBITDA. Pricing power is real, and the new plants should earn similar spreads.
-
Global footprint de-risks the export model: Manufacturing in the US, Malaysia and Thailand, plus a Dubai hub, reduces tariff, freight and lead-time exposure revealed by the West Asia crisis. It also opens qualification with local multinational customers.
Bear case:
-
Execution and timing slippage: SEZ contractor hiring slipped through Q1 FY27 and capital WIP was only INR 60 crore at 30 Jun 2026. The US capex plan is still unannounced. Each six-month delay pushes the growth inflection further out while the stock trades at about 34x forward earnings.
-
Q1 FY27 margin is likely a peak: Brokers attribute the beat to inventory buffers and FX. Reversion to 18–20% would leave FY27 EPS growth in single digits. FY26 already showed EBITDA down 5.8% with flat revenue.
-
Capital allocation and governance drag: ROE has fallen from 49% to 17%. The payout is 8%. The promoter group sold OFM shares to the company, and executive pay caps rose 50% in a flat-earnings year. Investors may demand a governance discount if cash is not deployed at prior returns.
Analyst verdict.
Fine Organic Industries is a high-quality, under-levered specialty chemicals franchise that is entering a multi-year investment phase after three years of capacity-imposed stagnation. The fundamentals are impressive. Gross margins have stayed around 40% through a full commodity cycle. Company-reported EBITDA margin was about 20% in FY26 and 25% in Q1 FY27. ROIC is around 25–30%, and net cash of INR 1,381 crore is enough to fund the SEZ project without new equity. None of this is in question.
The investment debate is about time and execution, not franchise quality. Management has said plainly that growth will be largely flat until the JNPA SEZ (H2 FY28) and the South Carolina plant (around FY29) arrive. Early signals on both are mixed. SEZ contractor appointment slipped and capital work-in-progress was only INR 60 crore by June 2026. The US capex plan is still pending. Meanwhile, the Q1 FY27 margin surge rests partly on inventory timing and rupee weakness, which brokers expect to fade toward the guided 18–20% band.
At about INR 5,150 the stock trades on roughly 36x trailing and 34x forward earnings and 27x EV/EBITDA. That is a full multiple which already credits much of the SEZ upside: PL Capital's INR 6,357 target needs both 35x and on-time FY28 delivery.
Governance is adequate but family-centric. All five executive directors come from the founding families, executive pay caps were raised 50% in 2026, and the Malaysian acquisition was partly a purchase from a promoter-group entity. Low payouts and a falling ROE argue for clearer capital-allocation communication.
Our synthesis is a high-quality compounder in a waiting room. The confirmation signals are visible SEZ construction progress, a disciplined US capex announcement, and FY27 EBITDA margins that hold at or above 20%. Without those, the premium valuation leaves limited margin of safety.
End of dossier. All figures are in INR crore and fiscal years end 31 March unless stated. They are deliberately not estimated.
Unlock Company Financials
Unlock this company profile to view its financial data.
View Subscription PlansExecutive Leadership
Executive Leadership Team
| Name | Title | On board since | Background / prior roles | Age / DOB | Compensation |
|---|---|---|---|---|---|
Mukesh Maganlal Shah | Chairman and Whole-Time Director (Chairman & MD from 27 Jun 2022) | Director since 2002 | Joined founding partnership in 1975 and expanded it nationally; promoter; about 15.4% personal shareholding | — | — |
Jayen Ramesh Shah | Managing Director | 24 May 2002 | Son of co-founder Ramesh Shah; previously Whole-Time Director and CEO; promoter with about 16.7% shareholding | Born 6 Aug 1963 (63) | — |
Tushar Ramesh Shah | Whole-Time Director and CEO (CEO since May 2024) | Director since 2002 (WTD from 6 Nov 2017) | Son of co-founder Ramesh Shah; previously WTD and CFO; promoter with about 16.3% shareholding | About 56–57 | FY2025 total about INR 4.95 crore (Simply Wall St, from annual report); upper limit raised to INR 75 lakh/month (AGM 2026) |
Bimal Mukesh Shah | Whole-Time Director | 1 Apr 2011 | Son of Chairman Mukesh Shah; promoter with about 4.2% shareholding | Born 17 Jan 1981 (45) | Upper limit raised to INR 75 lakh/month (AGM 2026) |
Nikhil Dattatraya Kamat | Whole-Time Director (operations; formerly Senior VP Operations) | 27 Jun 2022 | Long association with Fine Organics operations; from co-founder Kamat family | Born 26 Aug 1962 (64) | Upper limit raised from INR 30 lakh to INR 40 lakh/month (AGM 2026); re-appointed on rotation at 2026 AGM |
Sonali Bhadani | Chief Financial Officer (KMP) | CFO since 1 Apr 2024 | — | — | — |
Pooja Lohor | Company Secretary and Compliance Officer (KMP) | — | ICSI membership A28397 | — | — |
“—” = not publicly disclosed.
Board of Directors
| Name | Role | Since | Notes |
|---|---|---|---|
Prakash Krishnaji Apte | Independent Director | 2017 | — |
Kaushik Dwarkadas Shah | Independent Director | 2018 | Age about 72 |
Mahesh Pansukhlal Sarda | Independent Director | 2017 | — |
Parthasarathi Thiruvengadam | Independent Director | 2017 | — |
Rashi Mehta | Non-Executive Independent Director | 2024–25 (committee membership from 8 May 2025) | Woman independent director |
Shailendra Nadkarni | Non-Executive Independent Director | Appointed 2026 for five years | Approved at 24th AGM, 18 Aug 2026 |
Pratima Madhukar Umarji | Former Independent Director | 2017 to 3 Nov 2025 | Ceased citing health concerns |
Board & Management Changes
| Date | Change | Context |
|---|---|---|
27 Jun 2022 | Mukesh Shah becomes Chairman and MD; Nikhil Kamat appointed WTD | Succession following co-founder Prakash Kamat leaving the board |
1 Apr 2024 | Sonali Bhadani appointed CFO | Professional CFO replaces promoter-CFO model |
May 2024 | Tushar Shah appointed CEO; Jayen Shah continues as MD | Role rotation within promoter family |
8 May 2025 (approx.) | Rashi Mehta inducted as independent director | Board refresh |
3 Nov 2025 | Pratima Umarji ceases as independent director | Health reasons |
May 2026 | Shailendra Nadkarni appointed independent director (five years) | Approved at Aug 2026 AGM |
10 Jul 2026 | Two senior vice-presidents retire | Disclosed under Reg. 30; names partially reported (one "Dr."); succession not detailed |
Governance Overview
| Metric | Jun2025 | Sep2025 | Dec2025 | Mar2026 | Jun2026 |
|---|---|---|---|---|---|
Promoter and promoter group (%) | 75.00 | 75.00 | 75.00 | 75.00 | 75.00 |
Mutual funds (%) | 10.90 | 10.98 | 10.77 | 10.62 | — |
Foreign portfolio investors (%) | 4.81 | 4.57 | 4.43 | 4.40 | — |
Other domestic institutions (%) | 1.04 | 1.04 | 1.03 | 1.03 | — |
Total institutions (%) | 16.74 | 16.58 | 16.22 | 16.05 | 15.99 |
Retail and others (%) | 8.26 | 8.41 | 8.77 | 8.95 | 9.00 |
Major Shareholders
| Rank | Holder | Type | Shares | Stake (%) |
|---|---|---|---|---|
| 1 | Jayen Ramesh Shah | Promoter | 5,121,144 | 16.7 |
| 2 | Tushar Ramesh Shah | Promoter | 4,986,509 | 16.3 |
| 3 | Mukesh Maganlal Shah | Promoter | 4,710,894 | 15.4 |
| 4 | Bimal Mukesh Shah | Promoter | 1,281,604 | 4.2 |
| 5 | Estate of Prakash Damodar Kamat | Promoter group | — | — |
6–8 | Jyotsna Ramesh Shah, Neeta Jayen Shah, Bina Tushar Shah, Jayshree Mukesh Shah (named promoter-group individuals) | Promoter group | — | — |
9–10 | Largest mutual-fund holders (aggregate MF holding 10.62% at Mar 2026) | Institutional | — | — |
Competitive Landscape
Key Competitors
| # | Competitor | HQ | Overlap with Fine Organic | Ownership | Relative positioning |
|---|---|---|---|---|---|
| 1 | Croda International | UK | Polymer additives (slip, antistatic), cosmetics actives and emollients, industrial specialties | Listed (LSE: CRDA) | Global leader in bio-based specialty ingredients; far larger and more R&D-intensive; higher-value cosmetics and life sciences mix |
| 2 | Palsgaard | Denmark | Food emulsifiers, polymer additives (antistatic, antifog) | Private (Schultz family foundation) | Direct specialist competitor; Nirmal Bang benchmarks Fine's gross margins against Palsgaard |
| 3 | Danisco / IFF (DuPont legacy) | USA / Denmark | Food emulsifiers | Listed (NYSE: IFF) | Global food-ingredient scale player; also operates in India |
| 4 | BASF (Care Chemicals / Plastic Additives) | Germany | Cosmetics emollients and emulsifiers; polymer additives | Listed | Broad portfolio; additives a small part |
| 5 | Clariant | Switzerland | Polymer additives (antistatic, waxes), coatings additives | Listed | Strong in waxes and polymer additives |
| 6 | Emery Oleochemicals | Malaysia / USA | Oleochemical esters and polymer additives | Private | Integrated oleochemical producer with specialty arm |
| 7 | PMC Biogenix | USA | Fatty amides (slip / antiblock) | Private | Direct competitor in amide slip additives |
| 8 | Baerlocher | Germany | Polymer additives (lubricants, stabilisers, metallic soaps) | Private | PVC and polymer processing additives |
| 9 | Faci | Italy | Polymer additives (metallic stearates, amides, esters) | Private | European oleo-based additive specialist |
| 10 | Galaxy Surfactants | India | Oleochemical specialty care (cosmetics); feedstock overlap | Listed (NSE: GALAXYSURF) | Indian oleochemical peer, mostly surfactants; much larger revenue but far lower margins |
| 11 | Croda India / Danisco India | India | Local subsidiaries of multinationals | Unlisted subsidiaries | Compete for Indian food and cosmetics customers |
| 12 | Kao Chemicals / Oleon (Avril) / KLK Oleo | Japan / Belgium / Malaysia | Ester and amide derivatives | Listed / private | Integrated feedstock players with specialty derivatives |
Peer Comparison FY2026
| Metric | Fine Organic (FY26, Mar-26) | Galaxy Surfactants (FY26, Mar-26) | Croda International (CY2025) |
|---|---|---|---|
Revenue | INR 2,365.8 crore | INR 5,248.3 crore | GBP 1,699.4 million |
Revenue growth | +4.3% | — | +4.4% reported (+6.6% constant currency) |
EBITDA / operating margin | EBITDA 20.4% (company) | EBITDA 9.4% | Adjusted operating margin 17.4% |
Net margin | 17.6% | 5.1% | Not computed (statutory PBT sharply lower on impairments) |
Latest quarter trend | Q1 FY27 revenue +18%, EBITDA margin 25.3% | Q1 FY27 revenue +39%, EBITDA margin 14.1% | 2026 guide: 3–6% organic growth; margin >20% by 2028 |
