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Earnings Call Transcript

Fairchem Organics Earnings Call Transcript: Key Takeaways

Fairchem Organics shows a recovery in Q1 FY27, driven by higher price realizations and reduced Chinese dumping, though margins remain vulnerable to external geopolitical factors and raw material volatility.

Guidance and delivery
Management target Revenue 20.0% FY27
Highlights
Revenue growth34.4% YoY growth driven by higher pricing and pricing power.
MarginsMargins improved to 10.1% due to reduced Chinese competition.
Demand visibilityPositive trends in paint and cosmetic sectors; domestic demand stabilizing.
Management confidenceCautiously optimistic, focusing on capacity utilization and domestic market strength.

Growth

Revenue grew 34.4% YoY primarily due to higher pricing; EBITDA margins improved to 10.1% as import pressure eased.

Outlook

Targeting 100% capacity utilization; aiming for 5-7% quarterly volume growth to reach 20% by year-end.

Risks

Heavy dependence on Chinese dumping levels, geopolitical supply chain constraints, and raw material cost pass-through risks.

Last quarter's promises, checked

Delivered

  • Guided Q4 EBITDA recovery → delivered 6.9% vs 3.6% YoY (= BEAT)
  • Targeted Q4 volume 10,500 tonnes → delivered 10,500 tonnes (= BEAT)
  • Guided commissioning of new plant in Q2 → on track for launch (= BEAT)

Partly delivered

  • Targeted 8% EBITDA margin → delivered 6.9% in Q4 and 10.1% in Q1 FY27 (= PARTIAL)

Missed

  • Guided FY26 revenue recovery → delivered 14.5% decline (= MISS)
  • Guided FY26 volume 54k tonnes → delivered 44k tonnes (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: FAIRCHEMOR. Summary written with AI assistance from the document.

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Fairchem Organics Ltd: key numbers

Share price
₹671.55
Market cap
₹874.4 Cr
Revenue (annual)
₹459.6 Cr
Net profit (annual)
₹5.54 Cr
P/E (TTM)
60.8×Sector 37.5×
Promoter holding
63.26%+0.00% QoQ
FII holding
6.34%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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Fairchem Organics Q1 FY27 Results: Net Profit ₹10 Cr, Up 733.3% YoY

Fairchem Organics Ltd reported revenue from operations of ₹176.1 Cr (+34.3% YoY) and net profit of ₹10 Cr (+733.3% YoY) for Q1 FY27.

Key figure
Net profit ₹10 Cr · +733.3% YoY
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Fairchem Organics Q4 FY26 Results: Net Profit ₹3.7 Cr, Up 516.7% YoY

Fairchem Organics Ltd reported revenue from operations of ₹116.9 Cr (-3.2% YoY) and net profit of ₹3.7 Cr (+516.7% YoY) for Q4 FY26.

Key figure
Net profit ₹3.7 Cr · +516.7% YoY