FAIRCHEMOR
Fairchem Organics financials
- Market cap
- ₹1.0k Cr
- Sector
- Chemicals
- Calls analysed
- 7
Fairchem Organics Limited Q1 FY27
What went well
- Revenue from operations increased by 34.4% YoY to ₹176 crores, driven by higher price realization and lower imports.
- EBITDA margin improved to 10.14% (₹18 crores EBITDA) due to better realization in domestic markets and eased import pressure.
- Net profit for the quarter was ₹10 crores.
What to watch
- The inverted duty structure (16.5% on raw material vs. 7.5% on finished product) results in a 9% margin loss.
- Risk of China dumping impacting margins if supply chain constraints ease, as acknowledged by management.
What Fairchem Organics Limited does
Fairchem Organics manufactures oleo chemicals — Dimer Acid, Linoleic Acid/Soya Fatty Acid, Isostearic Acid, Palmitic Acid and Monomer Acid — by processing by-product streams generated during vegetable-oil refining, at a single integrated facility in Sanand, Gujarat set up in 1995. It also produces nutraceutical intermediates, Mixed Tocopherols and Sterol concentrate, which are largely exported. Its oleo-chemical products are sold to customers such as Asian Paints, Arkema and Quaker for use in paints, printing inks, adhesives, lubricants and cosmetics. The company runs an in-house R&D lab and is developing new products, including Isostearic Acid (where it is the only Indian manufacturer) and a new oleochemical raw material with planned capacity of 40,000 tonnes/year.
Segments
- Oleo Chemicals
- Nutraceuticals
- Manufacturing facility
- 1 integrated plant at Sanand, Gujarat (set up 1995, equipment sourced from Germany & Switzerland)
- Employees
- 227 (FY25)
- R&D team
- 13 employees (incl. 1 PhD)
- R&D lab
- 386 sq mt (established 2018)
- Prime products
- 3 (Dimer Acid, Linoleic Acid, Isostearic Acid)
- New capacity under development
- 40,000 tonnes/yr additional (new oleochemical raw material, atop existing ~80,000 tonnes/yr)
Guidance record · Q1 FY27
what the last two calls moved 16 tracked 0 delivered 3 missed 13 open- EBITDA Margin missed said Q3 FY25 Promised: 12% to 15% EBITDA margin next year (FY26) Q1 FY27: This promise for FY26 was concluded and missed. No new updates.
- Isostearic Acid Capacity Utilization delayed said Q4 FY25 Promised: Optimum utilization by next year (FY27) Q1 FY27: Management confirms ramp-up is slow due to stringent entry barriers and now guides for >80% utilization in 'next 1-2 years', confirming the delay of the original FY27 target.
- Alternative Raw Material Commercialization Decision on track said Q1 FY26 Promised: Decision to go commercial by November (Q3 FY26) Q1 FY27: Management states the new raw material product will be introduced 'next quarter' (Q2 FY27), showing continued progress.
All 16 tracked — every revision, and every one management stopped mentioning.
Open the guidance ledgerQuarterly results
Q1 FY27: revenue up 34.4%, net profit up 900.0% against the same quarter last year.
| Line item | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 139 | 114 | 121 | 131 | 112 −19% | 100 −12% | 117 −3% | 176 +34% |
| EBITDA | 9 | 8 | 4 | 5 | 4 −56% | 4 −50% | 8 +100% | 18 +260% |
| Net profit | 4 | 4 | 1 | 1 | 1 −75% | 0 −100% | 4 +300% | 10 +900% |
How to read this
₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.
Performance −21.3% 1Y
1Y: ₹792.7 on 10 Sept 2025 → ₹623.95. High ₹846.8 (28 Jul 2026), low ₹433 (30 Mar 2026).
How the price took the results
close before → close after
- Q1 FY27
- +5.0%
- 28 Jul
- Q4 FY26
- −1.4%
- 7 May
- Q3 FY26
- +1.0%
- 9 Feb
- Q2 FY26
- −1.3%
- 11 Nov
The move from the last close before each results date to the first close after it — the market's first read on the quarter, not the quarter itself.
Financials, as filed
Revenue fell 10.8% a year over 3 years, FY23 to FY26. Operating margin narrowed to 4.6%.
| Year ending | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|
| Revenue | ₹648 Cr | ₹622 Cr | ₹539 Cr | ₹460 Cr |
| Operating profit | ₹72 Cr | ₹68 Cr | ₹43 Cr | ₹21 Cr |
| Operating margin | 11.2% | 10.9% | 8.0% | 4.6% |
| Interest | ₹6 Cr | ₹4 Cr | ₹4 Cr | ₹4 Cr |
| Depreciation | ₹8 Cr | ₹9 Cr | ₹12 Cr | ₹12 Cr |
| Net profit | ₹44 Cr | ₹40 Cr | ₹23 Cr | ₹6 Cr |
| Net margin | 6.7% | 6.4% | 4.3% | 1.3% |
| ROCE | 22.0% | 19.0% | 10.0% | 3.0% |
How to read this
From the company's own filings. Margins are computed from the filed sums; a year with an incomplete quarter is left blank rather than estimated.
Balance sheet
| Year ending | FY21 | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|---|
| Equity capital | ₹13 Cr | ₹13 Cr | ₹13 Cr | ₹13 Cr | ₹13 Cr | ₹13 Cr |
| Reserves | ₹156 Cr | ₹219 Cr | ₹246 Cr | ₹277 Cr | ₹281 Cr | ₹250 Cr |
| Borrowings | ₹57 Cr | ₹62 Cr | ₹50 Cr | ₹7 Cr | ₹54 Cr | ₹84 Cr |
| Other liabilities | ₹33 Cr | ₹30 Cr | ₹33 Cr | ₹37 Cr | ₹40 Cr | ₹44 Cr |
| Total liabilities | ₹259 Cr | ₹324 Cr | ₹342 Cr | ₹334 Cr | ₹388 Cr | ₹391 Cr |
| Fixed assets | ₹126 Cr | ₹141 Cr | ₹156 Cr | ₹191 Cr | ₹199 Cr | ₹196 Cr |
| Capital work in progress | ₹29 Cr | ₹42 Cr | ₹35 Cr | ₹6 Cr | ₹14 Cr | ₹18 Cr |
| Investments | ₹0 Cr | ₹0 Cr | ₹0 Cr | ₹0 Cr | ₹0 Cr | ₹0 Cr |
| Other assets | ₹103 Cr | ₹141 Cr | ₹151 Cr | ₹137 Cr | ₹175 Cr | ₹176 Cr |
| Total assets | ₹259 Cr | ₹324 Cr | ₹342 Cr | ₹334 Cr | ₹388 Cr | ₹391 Cr |
How to read this
As filed each year. A line the company does not report — deposits for a non-lender, for instance — is left out rather than shown as a row of dashes.
All earnings calls (7)
Read the Q1 FY27 call →Learn to analyse Fairchem Organics Limited
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