Fairchem Organics Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Fairchem Organics Ltd filed with BSE on 09 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Fairchem Organics reported Q4 FY26 revenue of Rs 117 crores, down 3.2% year-on-year, with EBITDA margin improving to 6.9% aided by better domestic price realization as pressure from lower-priced Chinese imports eased. For the full year FY26, revenue was Rs 460 crores, down 14.5%, with volumes falling to 44,000 tonnes from 54,000 tonnes the previous year. Management discussed plans to raise capacity utilization, expand exports, and add a new oleochemical product line over the coming years.
Numbers mentioned
Revenue from operations: Rs. 117 crores (Q4 FY26)
p. 3
“For the quarter under review, the revenue from the operation stood at Rs. 117 crores, reflecting a 3.2% year-on-year decline from the corresponding quarter.”
Bhavesh Shah, page 3 of the filed PDF · View the filing
EBITDA: Rs. 8 crores (Q4 FY26)
p. 3
“EBITDA for the quarter was Rs. 8 crores with EBITDA margin of 6.9%.”
Bhavesh Shah, page 3 of the filed PDF · View the filing
Adjusted net profit after tax: Rs. 3.7 crores (Q4 FY26)
p. 3
“The adjusted net profit after tax for the quarter stood at Rs. 3.7 crores.”
Bhavesh Shah, page 3 of the filed PDF · View the filing
Revenue from operations: Rs. 460 crores (FY26)
p. 3
“For the year ended FY’26, the revenue from operations stood at Rs. 460 crores, a decline of 14.5% against the previous year.”
Bhavesh Shah, page 3 of the filed PDF · View the filing
Net profit after tax: Rs. 6.2 crores (FY26)
p. 3
“The net profit after tax stood at Rs. 6.2 crores.”
Bhavesh Shah, page 3 of the filed PDF · View the filing
Domestic sales share of revenue: 91% (FY26)
p. 3
“The domestic sales contributed 91% of the total revenue.”
Bhavesh Shah, page 3 of the filed PDF · View the filing
Total volume sold: 44,000 tonnes (FY26)
p. 3
“The total volume sold was 44,000 tonnes against 54,000 tonnes in the previous year.”
Bhavesh Shah, page 3 of the filed PDF · View the filing
Promoter holding after buy-back: 63.2% (Q4 FY26)
p. 3
“During Q4, we have successfully completed the buy-back of Rs. 4.25 lakh shares, which has increased the promoter holding from 61.2% to 63.2%.”
Bhavesh Shah, page 3 of the filed PDF · View the filing
Dimer acid revenue contribution: Rs. 140 crores (FY26)
p. 5
“So, dimer acid has contributed close to around Rs. 140 crores and isosteric acid has contributed Rs. 26 crores.”
Bhavesh Shah, page 5 of the filed PDF · View the filing
Q4 FY26 volume: 10,500 tonnes (Q4 FY26)
p. 6
“So, Q4, we did 10,500 tonnes. And for the whole year, we have done 44,000.”
Bhavesh Shah, page 6 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
EBITDA/EBIT margin — 8% margins · FY27
stated conditionally by Nahoosh Jariwala
p. 5
“Margins are going to be better this year. I mean, obviously, we are targeting to reach 8% margins.”
Nahoosh Jariwala, page 5 of the filed PDF · View the filing
Capacity utilization — more than 95% capacity utilization · next two years
stated as an aspiration by Nahoosh Jariwala
p. 5
“We are confident in next two years our plant would start working at more than 95% capacity utilization.”
Nahoosh Jariwala, page 5 of the filed PDF · View the filing
Capacity utilization for FY27 — around 80% capacity utilization · FY27
stated firmly by Nahoosh Jariwala
p. 6
“We expect to reach around 80% capacity utilization.”
Nahoosh Jariwala, page 6 of the filed PDF · View the filing
Export share of revenue — around 20%
stated as an aspiration by Nahoosh Jariwala
p. 7
“I mean, last year it was around 8% to 9%. We expect this to go by from 8% to 9% to around 20%.”
Nahoosh Jariwala, page 7 of the filed PDF · View the filing
New product capacity addition — 40,000 tonnes · five-year thing
stated as an aspiration by Nahoosh Jariwala
p. 8
“I mean, we will be adding 40,000 tonnes to our 80,000 tonnes capacity of a new product. So, I mean, it is going to take long. It is basically a five-year thing.”
Nahoosh Jariwala, page 8 of the filed PDF · View the filing
New product plant commissioning — Q2
stated firmly by Nahoosh Jariwala
p. 10
“And as regards the new product, by end of Q2, we should start the plant.”
Nahoosh Jariwala, page 10 of the filed PDF · View the filing
Bypass fat plant commissioning — next month
stated firmly by Nahoosh Jariwala
p. 10
“Bypass fat will be putting that plant in operation next month.”
Nahoosh Jariwala, page 10 of the filed PDF · View the filing
Bypass fat revenue contribution — Q3 onwards
stated conditionally by Nahoosh Jariwala
p. 10
“For bypass fat, it can start from Q3 onwards slowly.”
Nahoosh Jariwala, page 10 of the filed PDF · View the filing
New product revenue contribution timeline — two, two and a half years
stated conditionally by Nahoosh Jariwala
p. 10
“But for the new product, it will take minimum two, two and a half years because of validation and everything, which is a long process.”
Nahoosh Jariwala, page 10 of the filed PDF · View the filing
Margin — 12% to 15% range
stated as an aspiration by Nahoosh Jariwala
p. 11
“Yes, that is our dream. Obviously, we will work hard to achieve that. We will try our best.”
Nahoosh Jariwala, page 11 of the filed PDF · View the filing
Margin — double digit
stated conditionally by Nahoosh Jariwala
p. 15
“I mean, if things continue like this, volume growth happening and devaluation happening on rupees side and our energy saving initiative working, we can enter double digit.”
Nahoosh Jariwala, page 15 of the filed PDF · View the filing
New product ramp-up to full 40,000 tonnes — 40,000 tonne utilization · within five years
stated as an aspiration by Nahoosh Jariwala
p. 17
“So, we expect that within five years we will be able to reach 40,000 utilization.”
Nahoosh Jariwala, page 17 of the filed PDF · View the filing
New product revenue potential — Rs. 800 to 1000 crores
stated as an aspiration by Nahoosh Jariwala
p. 14
“It is a high value, it is a fairly high value product. So, I mean theoretically speaking, yes, Rs. 800 to 1000 crores.”
Nahoosh Jariwala, page 14 of the filed PDF · View the filing
CAPEX for FY27 — no CAPEX except energy savings · this year
stated firmly by Nahoosh Jariwala
p. 18
“This year there will not be any CAPEX except for anything related to energy savings.”
Nahoosh Jariwala, page 18 of the filed PDF · View the filing
Working capital days — 100 to 120 days
stated firmly by Bhavesh Shah
p. 17
“No, working capital is expected to remain at around between 100 to 120 days.”
Bhavesh Shah, page 17 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said recovery has been visible since March and continues into this quarter.
Answered by Nahoosh Jariwala
Asked by Rakesh Jain: Is there a recovery in the paint segment after recent headwinds?
p. 4
“Yes, we have start seen recovery during the month of March and even during this quarter, we see a robust recovery happening.”
Nahoosh Jariwala, page 4 of the filed PDF · View the filing
Both isosteric and dimer acid benefit from the 10% duty relief, putting India on par with other countries.
Answered by Nahoosh Jariwala
Asked by Danish Shah: What products benefit most from the FTA with EU and UK, and what is the duty differential?
p. 4
“Both isosteric and dimer, the 10% duty will help both isosteric and dimer.”
Nahoosh Jariwala, page 4 of the filed PDF · View the filing
Yes, investments made following the energy audit have reduced costs, and further reductions are expected.
Answered by Nahoosh Jariwala
Asked by Danish Shah: Was the decline in power and fuel cost due to the energy audit?
p. 4
“Yes, we did for one year. I mean, during the preceding one year, we did the energy audit of the plant and based on that, looking at the payback, we invested in electrical equipment, pumps, motors.”
Nahoosh Jariwala, page 4 of the filed PDF · View the filing
Management is targeting 8% margins this year and expects operating leverage to help as utilization rises.
Answered by Nahoosh Jariwala
Asked by Dhvaneet: Will margins return to FY25 levels of around 8% EBIT margin or expand further?
p. 5
“Margins are going to be better this year. I mean, obviously, we are targeting to reach 8% margins. And we are fairly confident we will be able to reach that.”
Nahoosh Jariwala, page 5 of the filed PDF · View the filing
Dimer acid contributed about Rs 140 crores and isosteric acid about Rs 26 crores, with linoleic acid also around 30% of revenue.
Answered by Bhavesh Shah
Asked by Chirag Vekaria: What was the volume contribution from dimer, linoleic and isosteric acid in FY26?
p. 5
“So, dimer acid has contributed close to around Rs. 140 crores and isosteric acid has contributed Rs. 26 crores.”
Bhavesh Shah, page 5 of the filed PDF · View the filing
Management said Adani Wilmar uses palm-based products while Fairchem uses soft oil-based products, so the markets and processes differ.
Answered by Nahoosh Jariwala
Asked by Keshav: Will Adani Wilmar's forward integration into oleochemicals impact Fairchem's business?
p. 6
“The products what we are using are all soft oil-based products and which are produced in a very small quantity to the tune of 1% of the crude oil.”
Nahoosh Jariwala, page 6 of the filed PDF · View the filing
Management confirmed this relief has been visible since February end.
Answered by Nahoosh Jariwala
Asked by Keshav: Has Chinese anti-involution reduced aggressive dumping?
p. 6
“Yes, we have seen. We have already seen that since February end.”
Nahoosh Jariwala, page 6 of the filed PDF · View the filing
Management indicated realization improved by about 8-10%.
Answered by Nahoosh Jariwala
Asked by Keshav: What improvement in realization has been seen recently?
p. 7
“Yes, around 8% to 10% improvement has happened.”
Nahoosh Jariwala, page 7 of the filed PDF · View the filing
Exports are currently around 9% and expected to rise to about 20%.
Answered by Nahoosh Jariwala
Asked by Maitri Shah: What is the current export contribution and growth outlook?
p. 7
“I mean, last year it was around 8% to 9%. We expect this to go by from 8% to 9% to around 20%.”
Nahoosh Jariwala, page 7 of the filed PDF · View the filing
Management attributed it to better price realization from reduced Chinese dumping, expected to continue this year.
Answered by Nahoosh Jariwala
Asked by Sanjay Shah: What drove the sharp EBITDA margin improvement in Q4 FY26?
p. 9
“It is based on better price realization because of less dumping happening from China. That is one thing. And secondly, we see the same thing continuing even during this year.”
Nahoosh Jariwala, page 9 of the filed PDF · View the filing
Management said the cut reflects a temporary earnings drop, not a policy shift.
Answered by Nahoosh Jariwala
Asked by Sanjay Shah: Why was the dividend cut sharply this year?
p. 10
“No. It is basically because of temporary earnings loss.”
Nahoosh Jariwala, page 10 of the filed PDF · View the filing
Management called this an aspiration they will work hard to achieve.
Answered by Nahoosh Jariwala
Asked by Keval Shah: Could margins return to the 12-15% range with less Chinese dumping and better utilization?
p. 11
“Yes, that is our dream. Obviously, we will work hard to achieve that. We will try our best.”
Nahoosh Jariwala, page 11 of the filed PDF · View the filing
US marketing paused due to a 50% duty has restarted, though approval cycles are long; interest is returning.
Answered by Nahoosh Jariwala
Asked by Keval Shah: What is the progress on isosteric acid in the US market?
p. 11
“Yes, obviously. People have started asking for samples. Now they are interested.”
Nahoosh Jariwala, page 11 of the filed PDF · View the filing
Commercial exports restarted on a small scale about two months ago.
Answered by Nahoosh Jariwala
Asked by Sanjana Kamath: Have US export enquiries resumed on dimer acid amid tariff changes?
p. 12
“We have started exports in fact. Commercial exports have started since two months. Though on a small scale, but they have started.”
Nahoosh Jariwala, page 12 of the filed PDF · View the filing
First phase CAPEX is around Rs 20-25 crores, with initial capacity of about 8,000 tonnes.
Answered by Nahoosh Jariwala
Asked by Dhiral Shah: What is the CAPEX for the new 40,000 tonne capacity product line?
p. 16
“I mean, in the first phase CAPEX around Rs. 20 crores or Rs. 25 crores what we have done.”
Nahoosh Jariwala, page 16 of the filed PDF · View the filing
Management said even if dumping resumed, current prices are acceptable to them.
Answered by Nahoosh Jariwala
Asked by Keshav Garg: Could Chinese exporters restart dumping now that prices have recovered?
p. 20
“That is not a problem. That is not a problem for us because at this price we are happy.”
Nahoosh Jariwala, page 20 of the filed PDF · View the filing
Risks flagged
Softer demand from the paint industry pressured revenue
p. 3
“Our revenue from operations saw a decline of 3% on a year-to-year basis, driven largely by softer outtakes from the paint industry, which, as you are aware, has been navigating its own structural adjustments over past several quarters.”
Nahoosh Jariwala, page 3 of the filed PDF · View the filing
Macroeconomic uncertainty from the Middle East crisis affecting supply chains and commodity prices
p. 3
“On the external environment, while we remain watchful of evolving macroeconomic situations, including the uncertainty arising from the ongoing Middle East crisis and its potential impact on global supply chains and commodity prices.”
Nahoosh Jariwala, page 3 of the filed PDF · View the filing
Rupee depreciation raises raw material and energy import costs
p. 21
“I mean devaluation is, I mean in both ways, no? India imports vegetable oil. So, the price of vegetable oil to that extent is going to increase.”
Nahoosh Jariwala, page 21 of the filed PDF · View the filing
Possible reintroduction of Chinese export incentives enabling renewed dumping
p. 19
“I mean, Chinese government can reintroduce that 15% incentive. I mean, that is not in our hand.”
Nahoosh Jariwala, page 19 of the filed PDF · View the filing
Duties on raw materials rose sharply, pressuring the business in prior years
p. 14
“the duties went up from 5.5% to as high as 27.5% on our raw materials and dumping happening on our finished products from China.”
Nahoosh Jariwala, page 14 of the filed PDF · View the filing
Vitamin E/tocopherols business remains idle due to weak market demand
p. 13
“That plant is, I mean not being utilized right now because the Vitamin E market is very, I mean it is not doing that great.”
Nahoosh Jariwala, page 13 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.