Fairchem Organics Limited — PPTs, 10-11-2025: Investor Presentation

Fairchem Organics experienced a challenging H1-FY26. Revenue from operations decreased by 20.1% year-on-year to ₹242.6 crore, with Q2 revenue down 19.6% YoY to ₹111.5 crore. Profit after tax significantly dropped by 89.4% to ₹1.9 crore for H1 and 80% to ₹0.8 crore for Q2. This decline was primarily due to weaker demand from the paints sector and the discontinuation of prime product exports to the USA. Elevated raw material costs and intense competition, particularly from China for Dimer Acid, further impacted margins.

Strategically, Fairchem is focused on forward integration to produce high-value products like Isostearic Acid. The company is actively expanding exports of Isostearic Acid to various countries, though new European regulatory requirements are temporarily slowing this growth; compliance processes are currently in progress. Fairchem previously expanded its raw material throughput capacity to 120,000 MTPA.

Management highlighted that the reduced demand in the paints sector likely stems from new market entrants. They anticipate Isostearic Acid exports will progressively ramp up once European regulatory compliance is completed.