Fairchem Organics Limited has informed the Exchange about Transcript
FAIRCHEMOR · price
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Fairchem Organics reported Q4 FY'26 revenue of Rs. 117 crores (down 3.2% YoY) with EBITDA margin improving sharply to 6.9% from 3.64% in Q4 FY'25. Full year FY'26 revenue was Rs. 460 crores (down 14.5% YoY) with net profit of Rs. 6.2 crores. Volume declined to 44,000 tonnes from 54,000 tonnes due to weak paint industry demand and Chinese dumping. The management highlighted that Chinese dumping has moderated significantly since February, leading to 8-10% improvement in realizations. Management guided to reach 8% EBITDA margins in FY'27 and expects exports to grow from 8-9% to 20% of revenue. A new 40,000 tonne capacity product (novel process, first in India) will be commissioned in Q2 FY'27 with expected margins of 15-18% and potential revenue of Rs. 800-1000 crores over 5 years. Promoter holding increased to 63.2% after buyback.
The sharp margin recovery despite lower volumes signals improved pricing power and reduced competitive pressure. Management's clear guidance on 8% margins and the high-margin new product pipeline are positive for shareholders, though near-term revenue will remain under pressure due to low capacity utilization (currently 65-66%).