Why did Fineotex Chemical crash by 88% today? Check the reason

Synopsis:
Shares plunged sharply due to an adjustment for a bonus issue and stock split, though the move aligns with SEBI norms to enhance liquidity. Despite temporary softness in revenue and profit, the firm remains globally diversified with strong technical expertise and a sustainability focus.

The shares of the specialty chemicals manufacturer fell up to 88 percent in today’s trading session, as today is the record date for the issue of bonus shares & stock split to the eligible shareholders. 

With a market capitalization of Rs 3,316.95 crore, the shares of Fineotex Chemical Ltd are trading at Rs 28.95 per share, increasing around 16.50 percent as compared to the previous closing price of Rs 24.85 apiece.

Reason for drop

Fineotex Chemical’s shares dropped 88.54% on October 31, 2025, due to the 4:1 bonus issue & 1:2 stock split record date. The sharp decline reflects the stock adjusting for the bonus & split allotment. This corporate action was approved on September 27. Some brokerage trading apps may still be displaying the unadjusted price, making the fall appear more severe than it actually is. This step aligns with SEBI norms and aims to boost liquidity and investor confidence.

Financial & Operational Highlights

The company’s Q1FY26 performance showed a soft patch, with revenue declining 4% year-on-year to Rs 137 crore from Rs 142 crore in Q1FY25. Net profit also fell 14% to Rs 25 crore, indicating margin pressure and slower demand momentum compared to the previous fiscal period.

According to the recent filing, a prominent ace investor, Ashish Kacholia, holds 30,00,568 equity shares, equivalent to 2.62 percent, in the company as of September 2025.

Fineotex operates across 70 countries with over 470 product categories and 1,500 SKUs, supported by 103 dealers worldwide. It has received FDA, Bluesign, and ZDHC accreditations. The company runs four business lines. 

Fineotex has built a diverse business portfolio spanning textile chemicals, FMCG, cleaning and hygiene, oil & gas, and water treatment. It delivers customized chemical solutions, leverages technical expertise for market advantage, and develops eco-efficient products that enhance equipment lifespan, improve water flow efficiency, and strengthen its presence across industrial and consumer segments.

Fineotex has successfully expanded into the FMCG, cleaning, and hygiene segment through its FDA-approved Ambernath plant, producing disinfectants, kitchen care, housekeeping, and laundry products. Its clientele includes leading names like AIIMS, Fortis, Sun Pharma, Glenmark, MMRC, and Mayfair Hotels, reflecting strong trust in its safety and quality standards.

Fineotex has a strong global footprint, operating in around countries, including the USA, Germany, Malaysia, and Brazil, supported by facilities in India and Malaysia. With 36 technical experts, the company derives 76% of its Q1FY26 revenue domestically and 24% internationally, showcasing diversified global operations.

Fineotex Chemical Ltd is a leading specialty chemical manufacturer based in India, offering innovative solutions across textiles, FMCG, water treatment, and oil & gas sectors. With a global presence in over 70 countries, it focuses on sustainable, high-performance products and strong R&D-driven growth.

Written by Abhishek Singh

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