Fairchem Organics Limited will conduct its 7th Annual General Meeting (AGM) on Monday, July 27, 2026, at 3.30 p.m. via Video Conference (VC) and Other Audio Visual Means (OAVM). The meeting follows regulations issued by the Ministry of Corporate Affairs and the Securities and Exchange Board of India (SEBI), permitting companies to hold AGMs without physical member presence. The electronic copies of the AGM notice and the Annual Report for F.Y. 2025-26 will be distributed via email to members whose contact details are registered with the company or its Registrar & Share Transfer Agent, MUFG Intime India Private Limited.

Shareholder Compliance and KYC Updates

The company has mandated that members holding shares in physical form must update their KYC details, including PAN, nomination choice, and bank account information, using Form ISR-1. This compliance is required to facilitate electronic dividend payments and remote e-voting. Members holding shares in dematerialised form must update their details directly with their Depository Participants. The requirement to send physical copies of the Annual Report has been dispensed with, though members can request them specifically.

Tax Deducted at Source on Dividend

Fairchem Organics stated that dividends distributed for F.Y. 2025-26 will be taxable in the hands of members under the Income Tax Act, 2025. The company will deduct Tax at Source (TDS) at the time of payment. No tax will be deducted if the total dividend paid to a resident individual shareholder during the financial year does not exceed ₹10,000. The applicable tax rate depends on the member's PAN status, residential category, and documentation submitted.

Key Dates and Requirements

Shareholders must link their PAN with Aadhaar and update any changes in residential status or category with their Depository Participants or the Registrar & Share Transfer Agent before the record date. The record date for determining dividend eligibility has been fixed as Monday, July 20, 2026. Members wishing to claim a lower or nil TDS rate must submit the necessary forms, such as Form 121 for residents or Form 41 for non-residents, via the specified portal or email by July 20, 2026.

The company emphasized that no communication regarding tax determination or deduction will be considered after the record date of July 20, 2026.

Fairchem Organics Limited has released its audited financial results for the quarter and year ended March 31, 2026. The Board of Directors, which met on May 6, 2026, approved the financial statements prepared in accordance with Indian Accounting Standards (Ind-AS). M/s. B S R and Co, Chartered Accountants, issued an Independent Auditors' Report with an unmodified opinion on the results. Pursuant to Regulations 30 and 47 of the SEBI (LODR) Regulations, 2015, the company published an extract of these audited results in the Financial Express (English and Gujarati editions) on May 7, 2026, and also submitted its Q4 FY26 earnings presentation to the stock exchanges on the same date. An audio recording of the earnings call held on May 7, 2026, from 3:30 p.m. onwards, was also submitted under Regulation 30.

Financial Performance Overview

For the financial year ended March 31, 2026, Fairchem Organics reported revenue from operations of INR 4,596 Mn, a decline of 14.5% year-on-year from INR 5,379 Mn in FY25. EBITDA for the full year stood at INR 216 Mn, down 49.5% from INR 428 Mn, with EBITDA margins contracting by 326 basis points to 4.70% from 7.96%. PAT excluding the exceptional item was INR 62 Mn, compared to INR 220 Mn in FY25, reflecting a 71.8% decline. Total income for the year was Rs. 46,095.38 lakh, down from Rs. 53,923.71 lakh in the prior year. An exceptional item of Rs. 88.27 lakh (net of tax: INR 7 Mn) was recognised during the year, arising from additional employee benefit obligations triggered by the Government of India's implementation of four new Labour Codes, including the Code on Wages, 2019, effective November 21, 2025. Management has classified this as a regulatory-driven, non-recurring charge. Basic and diluted EPS for the year stood at Rs. 4.28, compared to Rs. 16.88 in the previous year.

The annual financial performance is summarised below:

Quarterly Results

In Q4 FY26, Fairchem Organics reported revenue from operations of INR 1,169 Mn, a decline of 3.2% year-on-year, reflecting weaker offtake from the paints industry. However, EBITDA improved sharply by 81.7% to INR 80 Mn from INR 44 Mn in Q4 FY25, with EBITDA margins expanding by 321 basis points to 6.87% from 3.66%, reflecting improved price realization in the domestic market due to lower imports. PAT excluding the exceptional item for the quarter stood at INR 37 Mn, a 521.8% increase from INR 6 Mn in the year-ago period. Total income for the quarter was Rs. 11,746.87 lakh, compared to Rs. 12,102.46 lakh in the corresponding quarter of the previous year.

The quarterly financial performance is detailed below:

Historical Financial Trends

Over a three-year period, Fairchem Organics has seen a consistent decline in revenue and profitability, with revenue falling from INR 6,215 Mn in FY24 to INR 4,596 Mn in FY26. EBITDA declined from INR 670 Mn in FY24 to INR 216 Mn in FY26, while PAT (excluding exceptional items) fell from INR 405 Mn to INR 62 Mn over the same period. Return ratios have also compressed significantly, with ROCE declining from 19.08% in FY24 to 3.88% in FY26 and ROE from 13.97% to 2.09%. The cash conversion cycle extended from 76 days in FY24 to 128 days in FY26, and net debt to equity rose from 0.02 to 0.32 over the same period.

Balance Sheet and Cash Flow Highlights

As at March 31, 2026, total assets stood at INR 3,910 Mn (Rs. 39,097.93 lakh), compared to INR 4,018 Mn in the prior year. Total equity was INR 2,631 Mn, comprising equity share capital of INR 126 Mn and other equity of INR 2,505 Mn. Current borrowings increased to INR 837 Mn from INR 630 Mn in FY25. Trade receivables declined to INR 681 Mn from INR 861 Mn, while inventories rose to INR 922 Mn from INR 883 Mn. For the year, net cash from operating activities was INR 416 Mn, a significant recovery from a net cash outflow of INR 168 Mn in FY25. Cash used in investing activities was INR 137 Mn, while cash used in financing activities was INR 279 Mn, which included a share buyback outflow and dividend payments. Cash and cash equivalents at the end of the period stood at INR 0.1 Mn.

Segment Performance

Fairchem Organics operates in a single reportable business segment — Speciality Chemicals, encompassing Oleo Chemicals and Intermediate Nutraceuticals. Almost all revenue is derived from domestic sales. Segment revenue for the year stood at Rs. 45,964.82 lakh, compared to Rs. 53,789.84 lakh in the prior year. Segment results (before finance costs and interest income) were Rs. 1,153.96 lakh for the year, against Rs. 3,352.99 lakh previously. Total segment assets were Rs. 39,097.93 lakh and segment liabilities were Rs. 12,793.90 lakh as at March 31, 2026.

Share Buyback

The Board of Directors, at its meeting held on November 20, 2025, approved a buyback of up to 4,25,000 equity shares of Rs. 10/- each at a price of Rs. 800/- per share, for an aggregate amount not exceeding Rs. 34 crores, through the Tender Offer route. Members approved the special resolution via Postal Ballot on December 26, 2025. The buyback offer opened on January 8, 2026 and closed on January 14, 2026. Settlement of all valid bids was completed on January 21, 2026, and 4,25,000 equity shares were extinguished on January 27, 2026.

Dividend and Capital Market Data

The Board of Directors has recommended a dividend of 10% (Rs. 1.00 per equity share on a par value of Rs. 10/-), subject to shareholder approval at the upcoming Annual General Meeting. The record date for dividend eligibility has been fixed as Monday, July 20, 2026. This compares to a dividend of 75.00% in each of FY24 and FY25, reflecting the significant compression in profitability during FY26. As of March 31, 2026, the company's market price on BSE stood at INR 433.5, with a 52-week high/low of INR 1,100.0/427.9. Market capitalisation was INR 5,460.9 Mn with 12.6 Mn equity shares outstanding. The shareholding pattern as on March 31, 2026 showed promoters holding 63.26%, public at 28.33%, FPI at 6.35%, and AIF at 2.06%.

Business Strategy and Way Forward

Management has outlined four key strategic pillars to drive recovery and growth: cost optimisation, product upgradation, new product development, and geographical diversification. On cost optimisation, the company has undertaken detailed energy audits and is substituting imported catalysts with domestically sourced alternatives. Product upgradation initiatives include low titre Linoleic Acid for the oil field drilling industry, distilled dimer, and fatty oil upgradation for heating applications. New product development includes bypass fat from PFAD, Isostearic Acid adoption in the cosmetics industry, and the addition of one more raw material to produce a niche chemical. On geographical diversification, the company aims to increase exports to initially 25% and eventually 50% of sales, supported by the current level-playing tariff with the US and the proposed FTA with the EU and UK. Management noted that while macroeconomic conditions remain uncertain due to the Middle East crisis, the company is "consciously optimistic" given lower US tariffs, likely FTAs with the UK and EU, and recent rupee depreciation, which are expected to improve export competitiveness.

Corporate Governance Updates

The Board has considered the re-appointment of Shri Sudhin Choksey as an Independent Director for his second term. Shri Choksey brings 44 years of professional experience, including over 20 years as Managing Director of GRUH Finance Ltd. and a subsequent role as Executive Director (Designated) at Bandhan Bank. If approved by members, his tenure will extend from February 11, 2027, to February 10, 2032. The 7th Annual General Meeting is scheduled for Monday, July 27, 2026, via Video Conferencing and other Audio Visual Means. The Register of Members and Share Transfer Book will remain closed from Tuesday, July 21, 2026, to Monday, July 27, 2026 (both days inclusive), for the purpose of the AGM and dividend determination. The company's statutory auditors are KPMG, and it has been audited by one of the Big 4 for the last 9 years.