Fairchem Organics Limited has filed its Business Responsibility and Sustainability Report for the financial year ended March 31, 2026, with the National Stock Exchange of India and BSE Limited. The filing, submitted by Jatin Jain, Company Secretary & Compliance Officer, discloses the company's performance on environmental, social, and governance parameters as mandated under Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Environmental Performance

The company reported a significant reduction in its environmental footprint for FY 2025-26. Total Scope 1 and Scope 2 greenhouse gas emissions decreased by 45.7% to 25,380 metric tonnes of CO2 equivalent, down from 46,703 metric tonnes in the previous year. Energy consumption from non-renewable sources also fell to 365.27 Tera Joules from 576 Tera Joules in FY 2024-25. Fairchem Organics maintained a Zero Liquid Discharge (ZLD) mechanism, ensuring no wastewater is discharged into the environment, and reported total water withdrawal of 23,953 kilolitres.

Operational and Financial Metrics

The company's total turnover for the year stood at ₹46,095.38 lakhs, while net worth was reported at ₹26,304.03 lakhs. Exports contributed 7.80% to the total turnover. The manufacturing facility, located in Sanand, Gujarat, sources 100% of its raw materials sustainably, utilizing by-products from vegetable oil refining processes. The company generated 2,751 metric tonnes of waste, the majority of which was sent to Gujarat Pollution Control Board-approved co-processing units for use in the cement industry.

Social and Governance Disclosures

Fairchem Organics employed 126 permanent employees and 210 workers as of March 31, 2026. The report confirmed that 100% of employees and workers received training on human rights issues during the year. The company stated that no fines, penalties, or settlement amounts were paid in proceedings with regulators or law enforcement agencies. Additionally, there were no reported complaints regarding sexual harassment, discrimination, child labour, or forced labour.

Key Financial and Operational Data

Fairchem Organics Limited reported a significant decline in its financial performance for the financial year ended March 31, 2026, with net profit falling 74.8% to ₹554.05 lakh. The drop in profitability was primarily driven by higher raw material costs and a moderation in sales volume, which fell by 19.3% during the year.

Revenue from operations for the year stood at ₹45,964.82 lakh, a decrease of 14.5% from the ₹53,923.71 lakh recorded in the previous fiscal year. The company’s profit before exceptional items and tax also saw a sharp reduction of 72.6%, settling at ₹820.27 lakh. This contraction in margins was attributed to increased input costs that the company was unable to fully pass on to customers.

Despite the challenging operating environment, the Board of Directors has recommended a final dividend of Re. 1 (10%) per equity share for the financial year ended March 31, 2026. This dividend is subject to the approval of shareholders at the upcoming Annual General Meeting. The record date for determining shareholder entitlement to this dividend has been fixed as July 20, 2026.

The company’s earnings per share (EPS) for the year decreased to ₹4.28 from ₹16.88 in the previous year. The financial results reflect the broader industry pressures faced by specialty chemical manufacturers, including volatility in raw material prices and demand fluctuations in key markets.

Financial Performance Summary

The company’s management noted that while the macros remain uncertain due to geopolitical factors, they remain cautiously optimistic about the coming year, citing potential improvements in export competitiveness from recent rupee devaluation and lower tariffs in the US.