Sell

Fine Organic Industries (FINEORG) reported a muted operating performance, with an EBITDA decline of 10% YoY. Gross margin contracted 120bp YoY to 41.6%, while employee/other expenses increased 100bp/40bp YoY to 6.3%/12.7%.

We maintain our SELL Rating on the Stock.

We expect the company to sustain robust growth over FY27E, led by stronger volume offtake in SDA segment driven by Euro-7 demand, scale-up of agro and pharma intermediates, and increasing contribution from electrolyte salts.

We downgrade our rating form HOLD to SELL on the stock as the hopes of a turnaround now seem distant.

Clean Science’s (CST) EBITDA grew only 5.5% YoY despite tailwinds of lower input prices, and HALS offtake. Its established products revenue has grown 8% YoY, while lower sales were due to weak demand for new products.

JV with UPL to commercialize in FY27; gradual ramp-up expected Aarti Industries demonstrated a volume growth of 17% in FY25, however realizations across key products remained subdued, resulting in lower margins. For FY26, the management has guided double-digit volume growth and expects margins to remain stable. The Energy segment, which contributed 36% to the company's topline in FY25 and is largely comprised of MMA, saw sequential improvement in export volumes, although pricing pressure persists due to...

Gujarat Fluorochemicals reported consolidated revenue from operations of Rs12.3bn, marking an 8.1% YoY and 6.7% QoQ increase. This growth was primarily driven by an 11% YoY rise in the Fluoropolymers segment, attributed...

The company has signed LOI with Hitachi Energy to set up production of an eco-efficient gas used in Hitachi's SF6-free high-voltage switchgear portfolio Laxmi Organic Industries (LXCHEM) reported a topline of Rs7.1bn, reflecting a decline both YoY and sequentially, primarily due to continued pricing pressure across its product segments. However, the company recorded a modest volume growth of 1% during the quarter. The Specialty Chemicals segment outperformed in FY25, with EBITDA margin improving by 200bps to 23%....

Overall capacity utilization at ~65%; utilization varies across products reflecting 5% YoY decline but 7% QoQ increase. The topline was impacted by ~5% drop in sales volume YoY and marginal decline in the specialty product mix. Based on our estimates, average realizations stood flat YoY at Rs255/kg. Sales volume declined 5% YoY but grew 4% sequentially. However, EBITDA /kg fell 20% YoY, primarily due to higher operating leverage, resulting in a 240bps...

Fine Organic Industries (FINEORG) reported revenue of INR5.8b in 4QFY25. EBITDA stood at INR1.1b (28% miss; down 18% YoY). EBITDAM contracted 660bp YoY to 18.8%, while gross margin dipped 640bp YoY to 37.2%.

ARTO reported revenue of Rs19.5bn reflecting a 6% sequential increase, driven primarily by higher volumes in the dyes, pigments, polymer additives, and energy segment. However, the agrochemical business continues to face challenges. The energy segment, which has the highest contribution to revenue, saw a 21% sequential volume increase, supported by widening in customer base and geographical outreach, however pricing pressure led to lower than historical margins. Management has guided for FY28 EBITDA in the range of Rs1822bn, implying a 30% CAGR over the next three years to be...

GFL highlighted its growth plans at the group level under InoxGFL group which include the chemicals and wind energy businesses. Management expects the group’s EBITDA to quadruple over coming 3 years led by ramp up in both, battery chemicals and renewable energy businesses.

The global oleochemicals market, valued at USD37.9b in CY23 and projected to reach USD65.4b by CY30, presents healthy opportunities for Fine Organic Industries (FINEORG).