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SEZ and U.S. capex to drive long-term growth

FINEORG reported consolidated revenue of INR6.9bn in Q1FY27, registering growth of 18% YoY and 11% QoQ. Export demand improved during the quarter, while domestic markets remained steady. EBITDA margin expanded by 450bps QoQ, we believe it was primarily driven by higher realizations. During Q1FY27, raw material prices remained elevated compared with FY26, while sequentially, the increase was marginal. The company infused equity of ~INR61.7mn into its Thailand JV and ~INR4.9mn into its UAE subsidiary. Additionally, the company acquired ~159.9 acres of land in the U.S. in June’25 and expects to finalize the capex plan for the proposed manufacturing facility by Q2FY27. The ongoing INR7–7.5bn greenfield SEZ project is expected to commence commercial operations in FY28.

The company also received the final settlement of INR43.5mn in July'26 towards property damage and inventory losses related to the fire incident at its Badlapur plant, against interim settlements of INR18.0mn received earlier

We believe the upcoming SEZ facility and the planned U.S. manufacturing plant will act as key long-term growth catalysts for the company. The SEZ project is expected to deliver peak revenue potential of ~INR26bn, assuming an asset turnover of 3.5x, and should start contributing meaningfully to topline growth from FY28/FY29 onwards. At current valuations, FINEORG trades at ~28x FY28 EPS. We maintain our ‘BUY’ rating with a target price of INR6,357, valuing the stock at 35x FY28 EPS

Consolidated revenue increased 18%YoY/11%QoQ:

Consolidated revenue stood at INR6.9bn (18% YoY/ 11% QoQ) (Ple: INR5.9bn, Consensus: INR6.2bn). actual topline was 17% higher than our estimate. Overall demand remained stable with export demand improved during the quarter while domestic demand remained steady. Domestic and export sales accounted for 40% and 60% of revenue, respectively.

EBITDA increased 42%YoY/36%QoQ:

EBITDA came in at INR1.8bn (42% YoY/ 36% QoQ), (Ple: INR1,158mn, Consensus: INR1,284mn) and EBITDA margin came at 25.3% (vs 21% in Q1FY26 and 20.8% in Q4FY26). PAT stood at INR1,381mn (18% YoY/ 18% QoQ), while margin came at 20% (vs 20% in Q1FY26 and 19% in Q4FY25).

Business interruption settlement received for the Badlapur fire incident:

The company also received the final settlement of INR43.5mn in July 2026 towards property damage and inventory losses related to the fire incident at its Badlapur plant, against interim settlements of INR18mn received earlier

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