Fineotex Chemical Limited (FCL.NS) Q2 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, good evening, and welcome to the Q2 and H1 FY '26 Earnings Conference Call of Fineotex Chemical Limited. [Operator Instructions] Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Amit Kumar Sharma from Adfactors. Thank you, and over to you, sir.

Thank you, Sagar. Good evening, everybody, and a very warm welcome to you all. Thank you for participating in the earnings conference call of Fineotex Chemical Limited for the quarter ended September 30, 2025. Before we begin, please note that this conference call may contain forward-looking statements about the company, which are based on beliefs, opinions and expectations of the company as on the date of this call. The statements are not a guarantee of future performance and involve risks and uncertainties that are difficult to predict. On the call today, we have with us Mr. Sanjay Tibrewala, Executive Director; Ms. Aarti Jhunjhunwala, Executive Director; and Mr. Arindam Choudhuri, Chief Executive Officer, Textiles. The management will take us through the operational and financial performance for the quarter gone by, following which, we will open the forum for the Q&A. I now request Ms. Aarti Jhunjhunwala to take us through the company's performance. Thank you, and over to you, ma'am.

Thank you, Amitji, and a very good afternoon, everyone. It is always a pleasure to connect with our investors, analysts and stakeholders. We deeply appreciate your time and your trust in Fineotex Chemical Limited. Fineotex is not just a specialty chemicals company. We are a solutions-driven organization built on innovation, customer centricity and sustainable value creation. Our integrated product range, strong global presence and deep industry relationships position us to well cater to the evolving needs of a wide spectrum of industries. Our consolidated revenue has grown at a CAGR of 30.5% since 2020, while our profits have grown by 70.5% CAGR over the same period. During the quarter, the company demonstrated a strong resilience and continued to outperform the industry on profitability growth. This performance was driven by the company's focus on product development, ESG-driven innovation and ongoing operational efficiencies. In line with our commitment to employee empowerment and long-term value creation, the company granted 58,797 stock options to eligible employees. This continues to reinforce the company's philosophy of recognizing and rewarding the talent that supports its long-term growth. The company also declared and distributed an interim dividend of INR 0.80 on a face value of INR 2 each. The company undertook 2 significant corporate actions aimed at enhancing shareholder value and strengthening market participation. First, we announced a bonus issue in the ratio of 4:1, under which the shareholders received 4 additional shares of every share held -- every 1 share held. In addition to the bonus issue, the company also approved a subdivision of equity shares in the ratio of 1:2, effectively splitting each equity share into 2 shares of a lower face value. Together, these actions are designed to improve stock liquidity, make shares more accessible to a broader base of investors and reward our long-term shareholders for their continued trust and support. We also strengthened our governance framework with the appointment of Mr. Chetan Shah as a Non-Executive Independent Director of the company. Mr. Shah brings us over 30 years of extensive experience across capital markets, institutional sales, securities, business advisory and financial planning. His deep understanding of capital markets strategic advisory capabilities and strong network within the financial ecosystem will be invaluable in guiding us as we continue to scale our business and broaden our investor base, strengthen governance practices and grow across domestic and global markets. I would like to now hand over to Arindam Ji to take us through the key developments in this quarter.

Thank you, Aartiji. A very good evening, and thank you, everyone, for joining us today. Quarter 2 FY '26 has been a quarter of a steady progress for Fineotex Chemical Limited, supported by our continuous focus on product development, sustainability-driven innovation and disciplined operational performance. The company continues to generate rich cash flows and maintain a strong cash position, providing stability and the ability to invest in emerging opportunities. With that, volume growth across key categories has remained encouraging and our capacity enhancement plans continue as planned, supporting the next phase of scale up. We also maintain a strong governance record with 0 consumer complaints related to restrictive or unfair trade practices. During FY '25 and in quarter 1 of FY '26, the company has undertaken several CSR initiatives and contributed a substantial amount towards the upliftment of society. Together, these efforts reinforce our long-term commitment to sustainable, transparent and environmentally responsible growth. The company recorded healthy volume growth across key product categories, supported by improved demand visibility and stronger customer offtake. This momentum reflects the increasing acceptance of our high-performance and sustainable chemistries solution in both domestic and international market. Overall, quarter 2 FY '26 has been a quarter of a strong progress with healthy momentum across key segments and sustained financial strength. I would now hand over the call to Mr. Sanjay Tibrewala to take us through the financial performance of the company. Thank you very much.

Thanks, Arindamji. Good afternoon, everyone. I'm pleased to share the quarter 2 financial year '26. We delivered a strong all-round performance with clear sequential improvement across key financial metrics. Total revenue stood at INR 145.43 crores, supported by healthy demand across both the domestic and international markets. Our sales mix for the quarter stood at 75% exports and 25% -- sorry, 75% domestic and 25% exports, reflecting steady traction across regions. Our profitability metrics showed even stronger traction. Gross profit increased to INR 52.95 crores with a gross margin expansion sharply by 500 basis points Q-o-Q basis to 38.45 percentage compared to the 33.53% in Q1 financial year '26. This improvement was driven by disciplined cost controls, better raw material efficiencies and improved product mix. On the operating front, the EBITDA rose to INR 31.03 crores, marking a 23.12% sequential increase, while the EBITDA margin strengthened by 415 basis points to 22.53% compared to 18.38 percentage in the previous quarter. This operating leverage continues down the P&L with PBT rising to INR 35.39 crores, reflecting a solid 12.4% growth Q-o-Q basis. Our bottom line remained strong as well with a PAT increasing to INR 26.08 crores, reflecting a significant sequential improvement. Basic EPS stood at INR 2.27 per share. We continue to see strong traction in the textile segment as well, though it has faced pressure from the evolving U.S. tariff environment and a growing strong hold in the FMCG and oil and gas segment, both of which remains the key growth drivers for Fineotex. Our long-term growth trajectory remains robust and innovation continues to drive our business forward. Fineotex continues to strengthen its sustainability framework through measurable improvements across 3 environment and government parameters. The water consumption intensity declined, carbon emissions have remained very low in the financial year '25, reflecting a cleaner operation as well. Our solar power plant at Ambernath facility continues to operate successfully, contributing to renewable energy adoption with our operations. Furthermore, our continued focus on operational excellence and customer-centric solutions will allow us to unlock new revenue streams and expand our footprint across key and emerging markets. With a clear road map, a strong order pipeline and ongoing diversification into high potential sectors like oil and gas, we are confident in delivering value to stakeholders and achieving our ambitious annual growth targets. The outlook remains very highly optimistic as we continue to build momentum for the long-term success. The company is also progressing well on the other growth initiatives. We are increasing our focus on the oil and gas segment, where the company has secured several major breakthrough orders during the quarter. On the inorganic growth front, the company is actively reviewing multiple proposals and continues to evaluate opportunities that can strengthen our portfolio and support long-term growth. With that, now I open the floor for questions. Thank you. Over to you, Sagar.

[Operator Instructions] Our first question comes from the line of Manav Singh from MS Capital.

Sir, my question, like you are saying that order pipeline is very strong, but it's not executed in the revenue, sir, it's flat. Can you please tell are the American tariffs impacting textile orders? Sir, order line is not converting like revenue is flat quarter-on-quarter, Y-o-Y is also.

Perfect. So yes, Manav, yes, you rightly said, there is definitely an impact of the geopolitical situation. So a lot of orders which are there in the books also, a lot of the customers' orders have got postponed. And so that has not been shown, but the orders are there, it has been just postponed to some extent. So yes, but at the same time, as you also understand that India has tied up with U.K., FTA a lot of textile demand has come from U.K. As you also rightly indicated trend, yes, the share of textile chemicals this quarter was lower compared to our general textile share. And there has been a good increase in the other businesses. And we also hope that the textile will get back to track. Eventually, it has to get back to [indiscernible] place where there's no other option if you consider the textile dynamics. So ultimately, this is going to give some preference for the...

Sorry to interrupt. Sanjay sir, your audio was not coming clearly. It was breaking a little bit in between.

Okay. I'll just repeat a few [indiscernible]. Yes, there has been decline in the textile contribution in the quarter. However, the other industries, other businesses which we are into, oil and gas, specialty chemicals and the cleaning and hygiene, they have done pretty well comparatively to the previous quarter, and that has given a good balance and their proportion has increased. However, having said that, the textile business will definitely be coming back to India based on the assurances of the kind of businesses we are expecting with the other kind of -- with the countries, the U.S.A. and U.K. as well. With U.K., we have already tied up. India has already tied up for FTA, and we are very confident that even the U.S. deal will happen soon. And the companies are going to get back to track with their order pipeline. So all in all, we are seeing a good H2 going ahead.

Our next question comes from the line of D.K. Singh from Devender Capital.

Sir, my question is on a Aquastrike, sir, no orders yet for -- you said for the whole year, like 8 to 9 months are left in the last con call. Any such cases, can you please elaborate?

Yes. Perfect. So as we have also mentioned that we are expecting good kind of businesses happening in this financial year. At the same time, we have got the approvals on the product. Our plant is under the approvals of the CIB, and we have got -- we are awaiting the approvals of the plant for the production of this product as well. And it will be done in India now. So we are now shifting the production to India for this product. So there is a lot of technology transfers also happening at the other end. At the same time, we are in advanced label with certain government authorities to -- and the products have been got very positive response from Haffkine Institute as well. And so we are very excited with that. I am quite confident that the H2, we will surely have some orders on that from the government authorities.

Our next question comes from the line of Anirudh Daga from AV Securities.

Sanjay sir, I just had a couple of questions. Regarding the warrant conversion, what is the status of the warrant, sir?

So basically, there are 2 warrant conversions. One is supposed to finish the deadline, I think, is this Friday. I mean I'm not able to share too much information, but we have already started getting investments since yesterday. And we are anticipating that we will be able to get substantial portion of the warrants exercised by the investors.

As of now, there's no clarity on the warrant conversion. Is that...

As of now, I am not sure whether we -- I do not have the numbers right now in front of me, and I'm not also sure whether that is a number which I can share with you until and unless we share with the stock exchange. So I think by Friday, we will have the updated numbers. But giving you an indication that, yes, we have started getting the -- we started getting the investments from the warrant holders, and it has started coming since yesterday.

Okay. Okay, sir. And sir, as usual, the inorganic update?

Like I also mentioned now in my last stanza, we are already been actively reviewing multiple proposals as usual, and we continue to evaluate a lot of opportunities. I think we are very confident to have good opportunities coming and closing down in this H2. The confidence is also coming from a point of view, this is the time when there are -- there is a little bit of, I would say, softness in the global market in the chemicals industry, and that leads to getting more opportunities. And this is the right time for any company to acquire and invest into assets and into the global chemical.

So some news in the second half of the year, sir?

We are very hopeful about it.

Our next question comes from the line of [Ekta Mundra] from Smart Sync Services.

Sir, what percentage of your textile business is exposed by U.S. tariff, and any kind of context -- research, and concern as a tariff uncertainty...

Can you be a little louder? Can you be a little more louder...

What kind of -- what percentage of your textile business is exposed by U.S. tariff? And how are you supporting their customers.

Perfect. So I'll just take couple of questions, which you just mentioned. So as such, we do not export to U.S.A. directly, number one. However, there are many customers which we have in India and other countries. They are working for the U.S. markets as U.S. is one of the biggest consumers and naturally, most of the textile companies will be depending -- or not even depending, but we'll have some kind of stake in U.S. market. So what is happening right now, we are not directly getting affected. What's happening is the companies like, let's say, if I give you some names of Indian companies like Welspun, Indo Count, Himatsingka and other big textile companies, the face of India, let's say, these companies are having a time because their main domination was in the U.S. market. So once their orders get postponed to some extent, which is also getting covered up by the way, and they are also able to manage their supply with new product mix and other things. So there was a easing problem. There was a gap. I think the H2 is definitely going to become much better than the H1, especially for the textile industry. So this is all what we have been doing, and there has been some modifications in the product mix. And as you know, that Fineotex has the entire spectrum of the entire range of specialty chemicals for textiles, right from pretreatment, dying, printing, finishing of any fabric, whichever it is, for cotton, for PC or acrylic wool. So we have the kind of product range to excite the customers and cater to all their demand. So even if there is a change in the market, if there is more demand for not 100% cotton, but for 80:20 or something, we have the product range ready and with great references, and that helps us to cover up our businesses as well. That's about it.

Our next question comes from the line of Anupam Agarwal from Lucky Investment.

My first question was on the capacity. I believe our 16,000 tonne capacity would have started at the start of the quarter. What was the utilization of that 16,000 tonnes in this quarter?

Yes. So basically, the way it is working is that we could enhance our capacity from mid of the last quarter. So as such, this quarter, we have done almost, let's say 15,600 round about -- 15,600 tonnes versus last quarter, which was 15,150 tonnes. So there is a, let's say, a growth of 3% to 4% in the volume as such. And yes, so everything has been done. The growth is coming from the Ambernath area where the new plant is also established and things like that. We are ramping up it quite well.

Were there any volumes in the second quarter from the new plant, which is 16,000 tonnes?

Yes. We have started -- at the same time, we have started almost -- I can say we can -- we have touched -- we have already used 10% of it in the -- just to -- because these were the initial days, so naturally, we cannot use the highest capacity there. It takes time for the machines for the -- to make sure the pipelines are in order. So this was just one month or, let's say, 45 days we could get. So I think H2, definitely, there will be a lot of actions happening around there. Because that plant is designed in a way where the economies of scale can be more achieved, the costings will be lower. And that's also reflecting to some extent in our financials of quarter 3 -- quarter 2, where the gross margins are getting a little bit better, but more important is the EBITDA margins have also improved.

So what -- if I have to take a guidance, what sort of volume growth are we looking at for the FY '26 over '25, given that the capacity has come in and now stabilized as well?

See, Anupamji, generally, we -- like in the last 5 years, we have seen that we have done a growth of almost 45% CAGR. And thereby having challenges, [indiscernible] time, external factors, geopolitical situations. Now there are times where -- as such, we never lost any customer. As such, we never lost any product in any customer. However, if the demand of the customer reduces due to geopolitical situations, it really leads to delays and postponement of the orders. I mean there is inventory, there are goods, there is goods line, but the customers are trying to sometimes delay it because their customers in terms are delaying it. So right now, we are hopeful that this month or maybe by next month, we will have some positive news from the U.S. market, whereas it's concerned for the textiles. When it comes to oil and gas, we are very excited, by the way, on that lines. And we have done -- in fact, our contribution on oil and gas sector, we have increased from earlier 4% quarter 1, and now it's almost like 7%, 8%. And there is almost, I can say, a growth of 80% from the quarter 1 performance itself in the oil and gas. We were -- we have been getting great -- in last week also, we were exhibiting in ADIPEC in Abu Dhabi, which is the biggest oil show in the world. And there is a lot of attention coming to India, a lot of demand, a lot of interest has come to India for sustainable products and also cost-effective product lines. And we are -- we have added more and more team members in that division. That division will be shaping up very rapidly. So we are very hopeful about this division. So having said that, to come back to your question, I think if you consider from today onwards, I think there should be at least 15% growth rate in the coming times. Also hoping that the geopolitical situations gets better for India.

Understood. Just on the textile chemicals business, I believe the volumes are stagnant over the many -- last many quarters on that front despite a declining market, so to say. Are we kind of gaining market share from someone else? Are we losing market share? Are there other countries who are currently supplying to U.S. given the tariff situation?

So I'll share how -- what is our viewpoint about it. So number one, what's happening is, we are gaining more attention from various new customers, new geographies. We are increasing our manpower, our investment in exhibitions. Even from tomorrow, we have Techtextil going on. Next week, again, there is an exhibition. In this last 30 days, we have 4 exhibitions in 4 parts of the world in 4 different industries. So we are growing in a way in a diversified so that we have more number of customers and more number of products also per customer. So that's the focused business USP we have. Having said that, what happens sometimes due to the consumption decline of the customer, like in some of the U.S. market, for example. So we can say that the growth is not reflecting directly in terms of numbers, but this is something which has the action which we have taken in the past and even now, that has helped us to maintain a steady growth rate. However, I can also mention the revenue for textile contribution in this quarter 2 was lower than quarter 1, but that's the normal way happening everywhere. So in fact, it's still much better than what we were anticipating. If you ask us this question in the month of June or when the second tariff and penalties was issued on India. So we were not anticipating that we will reach even here. And going forward, now what -- also what is happening, if you -- what is happening is there is a gap in the supply chain already because earlier the malls and the big selling brand houses like Walmart, they were not buying more. They were reducing their inventory because nobody wants to pay the duties and et cetera. But now due to the supply shortage and other things, which is happening in the -- right kind of fabrics are not available in the malls. So then there is a gap, there is picking up. Things are getting better than before. So I think I can say that the worst is behind us in textile. That's the way we are looking at it.

Yes. Understood. If I may squeeze another question. Just a few comments the FMCG business, I see some sort of quarter-on-quarter improvement on that. Given the new GST rate cuts and everything, are you seeing some sort of demand pickup or inquiries flowing through in the FMCG business?

Yes. So generally, what happens is when there is a -- I mean, like in this case, there was a GST cut. So there -- I mean, most of the FMCG companies, they have 2 choices, either to reduce the price or to keep the same price and give a better quality product. Now that's the second part, which I said is the place where we enter because we produce a lot of performance boosters, a lot of surfactants, a lot of sustainable product lines. And that is the place -- there is a comfortable place where they are ready to use more of these products in their product line. That has helped. Plus there is -- you can say the seasonal Diwali festival and things like that, which also helps us to gain a little bit more volumes on that line. So yes, that is also both -- there are 2 reasons for that. That's the reason you can see the growth on a quarter-on-quarter basis on that line.

I have some more questions. I will come back in the queue.

You can complete if you want. I mean if it's 1 or 2...

Sure. On the gross margins, I wanted to understand, so there's a drastic improvement quarter-on-quarter again. Is there some sort of low-price raw material benefit that we have, maybe we had in the inventory, which we've used up this quarter? Or is it some sort of steady state given the product mix that we have right now?

No, it's more about the product mix, which has changed a bit and also the new businesses of oil and gas, which is also very promising. And yes, so these were the factors leading to it as such.

So there's no low-cost inventory in the quarter 2?

No, no, not at all. No, not at all. But also in the past, if you see always our profitability was -- I mean, the gross margins were always around 35%. 35% to 38% was the general thing. If you -- in fact, even if you see our books for the last 11 years -- not 11 years, sorry, last 14 years of being listed, 56 quarters, you will always see our gross margins has been at least 30% to 40% generally. And the EBITDAs have always been minimum 17% in any of the quarters of the last 56 quarters of being listed. So I think, yes, these are like certain times your -- some orders gets postponed, sometimes you get more orders of the products which have more EBITDA. So the product mix keeps changing. What is important is that we have the entire range of product lines, which excite the customers, and we can engage the customers, give them the best sustainable solutions. And the kind of R&D efforts and investments which we keep doing and developing more and more solutions, that is something which keeps us on the edge and the customers are very satisfied with our -- the solutions and the product lines.

Our next question comes from the line of Love Gupta from Counter Cyclical Investments.

So I just wanted to understand our newer segments like oil and gas, water treatment, Aquastrike, what sort of revenue contribution can we expect from these segments going forward and about like approximate year-on-year growth rate from these newer segments?

Thanks, Mr. Gupta. So I'm -- so I mean, historically, if you see the last 14 years of our performance, our company has grown CAGR 14 years by 30%. Last 5 years has been incredibly nice for almost 40% growth, something like that. I mean it doesn't mean that every year we will have the same kind of run rates. But yes, if you -- in the minimum growth rate, which we generally have is almost 15% to 20% year-on-year basis. Now we have been working, investing, adding more manpower and businesses for Aquastrike, for oil and gas, for cleaning and hygiene. I can say that we are working with the best, biggest brands, oil and gas, in the cleaning and hygiene areas, in textiles, we are already a brand leader here, and we are enjoying the brand value also. And that is also one of the reasons why we have better EBITDA than any other company in the industry. So it's not very easy to answer your question numerically, but I would say that average -- generally, we always anticipate a growth of 20% year-on-year. And that's the place we always aspire. Our team is always looking at. And if it's not happened in 1 year, then the second year takes care of the last 2 years also growth rate. So that's something which I can share with you.

All right, sir. And these newer segments, are the margins better or at similar levels, comparative levels?

The gross margin is definitely better. And yes, so that's about it. No. I mean, for the detergents, the gross margins are much better. The reasons are also that -- I mean, detergents, I mean, we have 2 subverticals. One is the branding one and one is the place where we are supplying to FMCG ones. So if you talk about the branding ones, there is a higher gross margins. But if you talk about the FMCG ones where we supply our specialty performance booster to the FMCG company, it's more or less in the same, maybe a little lower gross margins. But then the EBITDA margin is something which we have to focus upon. That's the way we look at our businesses. So ultimately, what is -- how we look at our businesses is on the EBITDA margins. And that's something has to be well taken care of. And this business is growing actually. It's a transitional level where it is today. So we are just looking at and very much optimistic and excited about what's unfolding for us in the new divisions.

All right, sir. So just one last question from my side. So what sort of a sustainable EBITDA margin can we expect for the whole year?

I mean if you see our historic performances, it's always around 22% to 23%. That's the general -- if you see an average, we are always here. Sometimes it has become 27%, sometimes it has become 19%. So it also depends on what kind of product mix and trends are continuing in the industry. If there are more specialty products which have been demand. So we will have more -- we have the increase in the EBITDA margins on that line. So it will be never -- because we have more than 1,500 SKUs, we have more than 500 approximately product categories. It's the entire basket of product lines. There are trends of the product mix, which keeps changing. And so our product also changes, the profitability of it also has a deviation on that.

[Operator Instructions] Our next question comes from the line of Parth Ketan Modi from Equirus. I Yes.

First of all, a clarification that you mentioned oil and gas contributed 7% in this quarter. Is my understanding correct?

Yes.

Hello?

Yes, yes. Yes. You're right.

Okay. Okay. So INR 10-odd crores will be from this segment. And how much -- could you share the order book and potential revenue from this vertical for the whole year and next couple of years?

I mean this is a division which we are just -- it's not even 2 years, and there is a lot of actions happening. So I mean, it's very tough to estimate right now what's going to unfold. If you see our Health and Hygiene division in the year '21, in fact, December '21, our Health and Hygiene sector was only 3% of the total business, and then it became to a level where it became almost 40%. And that was -- I mean, 40%, but the overall growth was also there. That also has doubled in the last 3 years, the sales from '21 to '24. So basically, these are the new drivers. We are very optimistic. It's very difficult to say whether it will become INR 100 crores or INR 500 crores or INR 200 crores, wherever it goes to. But I think there is a lot of interest coming in from the customers. We are very much excited about the kind of requirements which are coming in. And we are adding more and more manpower to cater to the demand on that for the marketing and for the product development. So that's the way it is. There are a lot of approvals. By the way, this industry is not about -- even if the product is approved, it doesn't mean anything, by the way, because until unless the contracts are over, which are lying for 2 years, 3 years, 4 years, it's a very long process. Even if you are in the -- if the product is approved, has no meaning at all until unless the renewals come in. And so the gestation period in this line is 2 to 3 years. So that's the way it works.

Our next question comes from the line of [Rahul Kothari], an investor.

I just wanted to know the revenue breakup into textile, FMCG and oil and gas. And also, if we are seeing any opportunity in defense sector, maybe a couple of years down the line?

Sorry, Rahul, could you repeat your first question? First is the breakup you asked for, right? So 80% is more or less -- no, sorry, now it's 74% is textiles broadly. And so yes, 75%, let's say -- and let's say, 7% is oil and gas, 7%. And the rest is on the other industries.

Okay. And next question is like, are you looking for any opportunity in defense sector?

Defense, okay. So basically, what happens if you -- so defense definitely helps our product lines and product segment. Most of the defense fabric, they require a lot of technical finishes, which is water repellent, oil repellant, blood repellant, anti-inflammability. And our biotech arm producing which the German technology made in Malaysia, where we own 72% stake is specialized on technical textiles. Now many of the -- in fact, from tomorrow, the exhibition is starting in NESCO for 3 days for technical textile where Fineotex is also exhibiting. We all will be there meeting the new -- I mean, the new demands and the new trends in the defense sectors for the fabrics, for canvas stands, for the parachute fabrics and other things. And all of these are generally to be treated by chemicals, not mechanically. I mean, mechanically is there, but these finishes are impacted. The technicalities and performance comes into the fabric by the use of chemicals. We are already strong in that segment and more and more such kind of businesses develop and the consumption of these chemicals are always going higher for that. So indirectly, yes, we are catering to those demands also. There is a lot of demand in Brazil for these kinds of defense fabric, in Turkey and also in India, there are many technical -- textile companies like as you must be knowing Kusumgar and others. So they have been growing quite well in the defense sector for the government supplies, and we are one of the suppliers to these -- such kind of industries.

Our next follow-up question comes from the line of Manav Singh from MS Capital.

Sir, my question is, sir, for the rest of the quarter, like you said for the Q3, how are you seeing the textile and what will be the revenue you're saying that it will grow. How do you see the traction of revenue -- the environment for the business? My question will be that. So textile, oil and gas, you have said it's a foreign type of -- for textile, how -- are you seeing the environment in domestic market?

I can clearly see that the H2 is going to become better than H1. That is a trend which we are very -- we are already looking at things, and we are already confident on that. Yes. So whether it will happen directly now or next month or next to next month is something which is not -- we are not able to guess right now because there are not -- I mean, this is the way it is. At the same time, we will not be able to diverge a lot of information about this quarter going on. But yes, things are getting nicer for the overall industry, and H2 is definitely going to become better than H1 for the textile companies in general in India.

Sir, you said sir, Aquastrike will we be able to get orders this quarter or next quarter, like in summer, your product will be more useful, like you said, for the Indian government, where there is -- obviously for mosquito, it is -- can you please shed some light on it?

Yes. Like I also mentioned in this meeting today to all the participants that, yes, we are very hopeful and confident that in H2, we'll definitely track good -- the maiden orders from the Government of India into -- for the Aquastrike and other things. So that's the way we would like to take it ahead.

[Operator Instructions] As there are no further questions from the participants, I now hand the conference over to Mr. Sanjay Tibrewala for closing comments.

Thank you, everyone, and we hope you will be able to get some more [indiscernible], you can always contact our Investor Relations company Adfactors or write to us on [email protected]. Have a good evening. We will be continuing to do our best, and we'll keep updating all the investors time to time on the stock exchange and whenever we have any announcement coming up. Thank you so much.

Thank you. On behalf of Fineotex Chemical Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.