Fairchem Organics Limited has informed the Exchange about Transcript
FAIRCHEMOR · price
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Fairchem Organics reported Q4 FY25 revenue of INR 121 crores, up 6.3% quarter-on-quarter but down 25% year-on-year, with EBITDA margins shrinking sharply to 3.64% and net profit of just INR 60 lakhs. Full-year FY25 revenue stood at INR 538 crores with net profit of INR 22 crores and EBITDA margins of 7.96%. The company blamed the margin pressure on a 22% additional customs duty imposed in September 2024 on a key raw material for its main product, dimer fatty acid, which it could not pass on to customers due to competition from China. Management highlighted growth in its higher-value Isostearic acid product, which has secured 16 customer approvals and is expected to reach optimum utilization by FY27. The company has also ordered equipment for a new specialty product, with trials expected by January-March next year, earmarking 40,000 metric tons of its 120,000 ton capacity for this new line.
Short-term outlook remains pressured by the customs duty issue, which the company acknowledges is unlikely to be reversed soon, keeping margins under strain. However, longer-term prospects improve as Isostearic acid scales up and the new product line begins trials, offering potential margin recovery and growth despite current headwinds.