Fairchem Organics Q2 FY27: Revenue Up 49.7% to ₹167 Cr, Net Profit ₹10.2 Cr
Fairchem Organics reported Q2 FY27 revenue of ₹167 crore, up 49.7% YoY, with net profit at ₹10.2 crore. H1 FY27 revenue increased 41.4% to ₹343 crore, with net profit at ₹21.2 crore. The company expects improved margins due to reduced import duty on soybean oil and favorable market conditions. Capacity utilization is currently 60-65% and expected to improve. A new product launch is anticipated in Q3 FY27.
The significant year-on-year revenue growth, improved profitability, and positive outlook on raw material costs and market conditions are material factors that are likely to have a high impact on investor sentiment and the company's stock performance.
The company reported strong year-on-year growth in revenue and profits for both the quarter and half-year. Positive commentary on market conditions, raw material availability, and future prospects supports a positive sentiment.
Fairchem Organics Limited has announced its unaudited financial results for the quarter and half-year ended September 30, 2026. The company reported a revenue from operations of ₹167 crore for Q2 FY27, marking a significant 49.7% year-on-year increase. The EBITDA margin for the quarter stood at 10.5%, and the net profit was ₹10.2 crore. During the quarter, the company processed 12,200 tons of raw material and sold 12,300 tons.
For the half-year ended September 30, 2026, revenue from operations was ₹343 crore, an increase of 41.4% compared to the corresponding period. The EBITDA for H1 FY27 was ₹35.4 crore with an EBITDA margin of 10.3%, and the net profit was ₹21.2 crore. The company processed 24,600 tons of raw material and sold 25,800 tons during this period.
The company's performance has benefited from improved price realization, driven by lower raw material costs and higher finished product prices. The domestic market environment remains supportive, with reduced imports of dimer acid positively impacting realization and operating margins. Management expressed cautious optimism for the remainder of the year, noting potential benefits from reduced US tariffs and free trade agreements with the UK and Europe, which could improve export prospects. The recent reduction in import duty on Crude Soybean Oil from 16.5% to 11% is expected to enhance raw material availability and potentially lower prices, aiding capacity utilization.
During the earnings call, the company shared that its current capacity utilization is around 60% to 65%, with expectations of improvement. The management also discussed the potential for EBITDA margins to reach 15%-18% in the future, driven by increased capacity utilization and improved raw material costs. The company is also working on a new product using novel technology, expected to launch in Q3 FY27, which is an import substitution product with export potential. The company bought land worth ₹12 crore, which was already in use for current operations and worker's colony.
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Fairchem Organics Limited filed this with the NSE as a statutory disclosure, categorised under quarterly results. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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