Fine Organic Q2 FY27 Results (NSE: FINEORG)
Signal: Steady quarter
The read
The trajectory is broadening through consolidation and capacity investment: consolidated revenue reached ₹729.39 Cr, up 5.1% QoQ, and PAT rose 10.1% to ₹152.12 Cr, but sequential gross margin fell 212bps to 43.3% as direct costs grew faster than sales. Standalone H1 operating cash flow of ₹77.58 Cr versus ₹270.64 Cr H1 PAT also makes working-capital absorption an important monitor while CWIP rose to ₹170.73 Cr.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹729.39 Cr | N/A | +5.1% |
| Net profit | ₹152.12 Cr | N/A | |
| EBIT margin | N/A |
P&L walk
Consolidated revenue increased to ₹729.39 Cr from ₹694.17 Cr QoQ, but direct-cost intensity rose as raw materials reached 58.5% of revenue from 56.7%; PAT still increased to ₹152.12 Cr from ₹138.14 Cr, aided by ₹12.44 Cr of joint-venture profit and a deferred-tax credit.
Segments
The group uplift is partly acquisition-led: newly consolidated subsidiaries contributed to consolidated revenue of ₹729.39 Cr versus standalone revenue of ₹693.49 Cr, while the consolidated PAT premium was ₹16.98 Cr; the filing also identifies one subsidiary with a quarterly net loss of ₹4.50 Cr and six subsidiaries with aggregate quarterly profit of ₹21.30 Cr.
Key positives
- Consolidated revenue increased to ₹729.39 Cr, up 5.1% QoQ, while consolidated PAT rose 10.1% to ₹152.12 Cr.
- Standalone gross margin improved 520bps YoY to 41.7%, with raw materials as a share of revenue falling to 60.998% from 61.993%.
- Consolidated asset creation is accelerating: PP&E plus CWIP increased to ₹584.95 Cr from ₹426.21 Cr at March 31, 2026, and the company approved an additional ₹120 Cr investment limit for a manufacturing unit.
- Standalone basic EPS of ₹44.08 tracked PAT growth of 41.7% YoY, with no disclosed equity-dilution divergence.
Key concerns
- Consolidated gross margin declined 212bps QoQ to 43.3% as direct costs rose 9.2% QoQ versus revenue growth of 5.1%.
- Standalone H1 operating cash flow was ₹77.58 Cr against standalone H1 PAT of ₹135.14 Cr, with inventories increasing ₹108.69 Cr and trade and other receivables absorbing ₹66.02 Cr.
- Consolidated finance costs increased 134.4% QoQ to ₹2.11 Cr as borrowings of ₹154.68 Cr appeared on the consolidated balance sheet.
- The newly consolidated group includes one subsidiary reporting a quarterly net loss of ₹4.50 Cr and a joint venture contributing a ₹12.44 Cr share of profit; the sustainability of the consolidated uplift therefore depends partly on acquired and investee entities.
Research and educational content only. Not investment advice.