Fineotex Chemical Limited Completes Conversion of Warrants to Equity Shares and Reports Strong Q2 FY26 Results

Fineotex Chemical Limited has completed the conversion of 13,75,000 warrants into equity shares. The Fund Raising Committee approved the issuance of 1,37,50,000 equity shares at Rs 34.60 each, including a premium of Rs 33.60. This decision was made during a meeting on November 21, 2025. The conversion was finalised after four allottees paid Rs 35,68,12,500, which is 75% of the warrant issue price.

The company's paid-up capital has increased to Rs 115.95 crore, comprising 115.95 crore equity shares. Currently, promoters hold 62.57% of these shares, while non-promoters own the remaining 37.43%. Adjustments were made in line with SEBI regulations and followed a recent share split and bonus issue approved on October 25, 2025.

Fineotex Chemical Limited reported a slight increase in consolidated revenue for Q2 FY26, reaching Rs 137.71 crore with a 0.5% QoQ rise. Gross profit improved by 15.2% QoQ to Rs 52.95 crore due to cost savings, raising the gross margin from 33.53% in Q1 to 38.45%. EBITDA also saw a significant increase of 23.12% QoQ to Rs 31.03 crore.

The EBITDA margin improved by 415 basis points to reach 22.53%. Net profit rose by 4.2% QoQ to Rs 26.08 crore after profit before tax increased by 12.4% QoQ to Rs 35.39 crore. Basic EPS improved from Rs 2.18 in Q1 to Rs 2.27, while the PAT margin remained strong at 18.94%.

As of September 30, 2025, Fineotex Chemical Limited's total assets increased to Rs 877.60 crore from Rs 814.63 crore as of March 31, 2025. This growth was driven by higher current assets and ongoing investments. Shareholders' funds rose from Rs 738.87 crore to Rs 787.76 crore due to retained earnings growth.

Non-current liabilities increased to Rs 11.78 crore from Rs 8.66 crore due to higher deferred tax obligations, while current liabilities rose to Rs 78.06 crore from Rs 67.10 crore because of increased trade payables and other current liabilities.

Capital Structure and Liquidity

Non-current assets grew to Rs 564.29 crore due to increased financial investments and property, plant, and equipment acquisitions. Current assets saw a significant rise to Rs 313.30 crore from Rs 260.93 crore due to higher trade receivables of Rs 132.38 crore, cash and cash equivalents of Rs 46.29 crore, and bank balances of Rs 22.29 crore.

The company remains well-capitalised with a strong equity base and sufficient liquidity for future growth initiatives.

Fineotex Chemical also announced that out of the initial distribution on May 22, 2024, of the total warrants issued (26,26,600), only half (12,51,600) remain valid as per regulatory guidelines; the subscription value forfeited amounts to Rs 32,47,90,200.

A record date set for October 31, 2025 marked Fineotex Chemical's completion of a bonus share issuance at a ratio of four shares for every one held (4:1) alongside a stock split (1:2). Each original share worth Rs two was divided into two shares worth Re one each under this stock split plan.

Consequently after both actions were executed successfully any investor holding one share before this date would now possess five shares: one original share split into two plus four bonus shares received additionally.