Fairchem Organics Q1 Results: Net Profit Surges 751% YoY, EBITDA Nearly Triples
Fairchem Organics posted a strong Q1FY27 performance with net profit surging 751% YoY to ₹10.01 crore and revenue from operations rising 34% to ₹176.15 crore. EBITDA nearly tripled to ₹178M from ₹52M, with EBITDA margin expanding sharply to 10.14% from 3.98%, reflecting significant improvement in operating efficiency. EPS rose to ₹7.95 from ₹0.90, while segment assets grew to ₹397.52 crore as of June 30, 2026.

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Fairchem Organics reported a net profit of ₹10.01 crore for the quarter ended June 30, 2026, representing a 751% surge compared to ₹1.17 crore in the same quarter of the previous fiscal year. The specialty chemicals manufacturer also saw revenue from operations climb 34% year-on-year to ₹176.15 crore, while EBITDA nearly tripled to ₹178M from ₹52M in the prior year period, signaling strong operational momentum in its first quarter of FY27.
The Board of Directors approved the unaudited financial results on July 27, 2026, pursuant to Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were prepared in accordance with Ind AS and reviewed by the Audit Committee before board approval. Statutory Auditors B S R and Co expressed an unmodified review conclusion on the limited review of the financial statements.
Financial Performance Highlights
The company's total income reached ₹176.49 crore in Q1FY27, up from ₹131.20 crore in Q1FY26. This growth was primarily fueled by higher revenue from operations, which stood at ₹176.15 crore against ₹131.06 crore in the prior year period. Other income contributed marginally at ₹34.75 lakh. The following table summarises the key financial metrics for the quarter:
| Particulars: | Q1FY27 | Q1FY26 | YoY Change |
|---|---|---|---|
| Revenue from Operations: | ₹17,614.57 lakhs | ₹13,106.31 lakhs | +34.40% |
| Total Income: | ₹17,649.32 lakhs | ₹13,119.67 lakhs | +34.50% |
| EBITDA: | ₹178M | ₹52M | ~+242.31% |
| EBITDA Margin: | 10.14% | 3.98% | +616 bps |
| Profit Before Tax: | ₹1,363.67 lakhs | ₹161.56 lakhs | +744.10% |
| Net Profit After Tax: | ₹1,001.38 lakhs | ₹117.36 lakhs | +751.50% |
| EPS (Basic/Diluted): | ₹7.95 | ₹0.90 | +783.30% |
Cost of materials consumed rose to ₹120.27 crore from ₹90.73 crore in the previous year, reflecting increased production volumes. Employee benefits expense increased to ₹67.54 crore from ₹60.15 crore, while finance costs nearly doubled to ₹18.38 crore from ₹10.05 crore. Despite these cost increases, the company managed to expand its pre-tax profit significantly to ₹13.64 crore from ₹1.62 crore in the prior year period.
Segment and Balance Sheet Overview
Operating in a single reportable segment of specialty chemicals, including oleo chemicals and intermediate nutraceuticals, Fairchem Organics generated segment revenue of ₹176.15 crore. Segment assets grew to ₹397.52 crore as of June 30, 2026, from ₹361.90 crore a year earlier. Segment liabilities stood at ₹124.85 crore, down slightly from ₹127.94 crore at the end of FY26 but significantly higher than ₹58.76 crore in Q1FY26.
The company's paid-up equity share capital remained unchanged at ₹12.60 crore. Earnings per share jumped to ₹7.95 from ₹0.90 in the corresponding quarter last year. For the full year ended March 31, 2026, the company had reported a net profit of ₹55.41 crore on revenues of ₹459.65 crore.
What the Numbers Show
The dramatic turnaround in profitability is evident across multiple metrics. While revenue growth of 34% is substantial, the EBITDA margin expansion from 3.98% to 10.14% highlights a meaningful improvement in operating efficiency. The 744% surge in pre-tax profit further indicates significant operating leverage, as the company successfully converted top-line growth into bottom-line gains despite rising material and finance costs. The absence of exceptional items in the current quarter, unlike the ₹88.27 lakh regulatory-driven charge in FY26, also contributes to the cleaner profit picture. This performance underscores the resilience of the specialty chemicals business model during this period.
Historical Stock Returns for Fairchem Organics
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +5.00% | +14.53% | +26.14% | +24.66% | -14.57% | -52.32% |
Can the company sustain its expanded EBITDA margin of 10.14% in upcoming quarters given the rising cost of raw materials and finance costs?
What specific operational strategies or product mix shifts contributed to the significant operating leverage that drove the 751% surge in net profit?
How does the increase in segment liabilities to ₹124.85 crore impact the company's future capital allocation and debt servicing capabilities?


































