Please find attached herewith transcript of audio recording of Earnings Concall on Audited Financial Results for the Quarter and Year Ended March 31, 2026
FAIRCHEMOR · price
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Fairchem Organics reported Q4 FY'26 revenue of Rs.117 crore (down 3.2% YoY) with EBITDA margin improving to 6.8% from 3.64% in Q4 FY'25, driven by better price realization as Chinese dumping reduced significantly since February. Full year FY'26 revenue was Rs.460 crore (down 14.5%), with EBITDA of Rs.22 crore (4.7% margin) and net profit of Rs.6.2 crore. Volume declined to 44,000 tonnes from 54,000 tonnes. Management completed a buyback of 4.25 lakh shares, increasing promoter holding to 63.2%. Management expects FY'27 margins to reach 8% by targeting 75-80% capacity utilization, with export contribution rising from 8-9% to 20%. A new 40,000 tonne high-margin product (15-18% margins) using a novel process will be commissioned in Q2 FY'27, with Rs.800-1000 crore revenue potential over 5 years. The long-term Rs.2,000 crore revenue vision by FY'30 is based on this expansion.
Margin recovery is underway as Chinese dumping has moderated and paint sector demand is rebounding. The new high-margin product pipeline and export growth targets provide multi-year growth visibility, though near-term earnings remain pressured with dividend cut to Rs.1 from Rs.7.5.