Fairchem Organics Reports 19.6% Revenue Decline in Q2 FY26 Amid Challenges in Paint Sector and US Exports

Fairchem Organics Limited , a leading manufacturer of oleo chemicals and nutraceuticals, has reported a challenging second quarter for the fiscal year 2025-26 (Q2-FY26). The company faced headwinds from weak demand in the paints segment and disruptions in US exports, resulting in a significant decline in revenue and profitability.

Financial Performance

Fairchem Organics reported the following key financial metrics for Q2-FY26:

Metric	Q2-FY26	Q2-FY25	Y-o-Y Change
Revenue from Operations	₹1,115.00	₹1,386.00	-19.6%
EBITDA	₹42.00	₹87.00	-51.7%
EBITDA Margin	3.77%	6.28%	-251 bps
Profit After Tax (PAT)	₹8.00	₹40.00	-80.0%
PAT Margin	0.72%	2.89%	-217 bps

Operational Highlights

The company processed 11,492 MT and sold 10,469 MT during Q2-FY26.
Domestic sales accounted for 91.22% of revenue, while exports contributed 8.78%.
Revenue declined by 14.9% in value terms and 19.9% in volume terms on a quarter-on-quarter basis.

Challenges and Market Dynamics

Paint Sector Weakness

The company experienced lower offtake from the paints segment, which may be due to market share challenges arising from the entry of a new player in the sector.

US Export Disruption

Fairchem Organics discontinued the export of prime products to the USA, impacted by the imposition of a 50% U.S. tariff on select Indian exports.

Raw Material Pressures

Despite a partial rollback of additional customs duty, raw material prices remained elevated due to firm global vegetable oil markets.

Dimer Acid Margins

Margins for Dimer Acid remained under pressure, intensified by aggressive Chinese pricing and unchanged 7.5% import duty.

Strategic Focus on Isostearic Acid

Isostearic Acid remains a key strategic growth product for Fairchem Organics. However, exports beyond the U.S. are seeing slower-than-expected scale-up due to new regulatory registration requirements in Europe. The company is currently in the process of completing compliance, after which exports are expected to ramp up in a staggered manner.

Outlook

While Fairchem Organics faces short-term challenges, the company's focus on value-added products and its efforts to comply with new regulatory requirements in Europe suggest potential for future growth. The company's ability to navigate the current market dynamics and capitalize on its strengths in oleo chemicals and nutraceuticals will be crucial for its performance in the coming quarters.

Investors and market watchers will be keenly observing how Fairchem Organics adapts to the changing market conditions, particularly in the paints sector and export markets, as well as its ability to manage raw material costs and improve margins in the face of global competition.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.27%	+2.64%	-9.92%	-15.56%	-15.86%	+6.78%

Fairchem Organics Limited , a leading manufacturer of specialty chemicals, has released its unaudited financial results for the quarter ended September 30, 2025, alongside significant management changes.

Financial Performance

The company reported a decline in both revenue and profit for the quarter:

Metric (in Rs. lakhs)	Q2 2025	Q2 2024	YoY Change
Revenue from Operations	11,152.27	13,861.86	-19.55%
Net Profit After Tax	77.22	401.06	-80.75%

The revenue from operations decreased by 19.55% year-over-year, while net profit after tax saw a significant drop of 80.75% compared to the same quarter last year.

Management Changes

The Board of Directors has approved several key management changes, effective November 15, 2025:

Retirement: Mr. Rajen Jhaveri will retire as Chief Financial Officer and Company Secretary on November 14, 2025.
New CFO Appointment: Mr. Bhavesh Bipinchandra Shah, a 44-year-old Chartered Accountant and Cost and Management Accountant, will be appointed as the new Chief Financial Officer. Mr. Shah brings 23 years of diverse experience in Finance and Accounts across various industries, including senior positions at Arvind Group companies.
New Company Secretary: Mr. Jatin Jain, approximately 40 years old, will be appointed as Company Secretary and Compliance Officer. Mr. Jain is an Associate Member of the Institute of Company Secretaries of India with over 17 years of experience in Corporate & Secretarial law and Insolvency and Bankruptcy Code.

Board Meeting Highlights

The company's Board of Directors met on November 7, 2025, and approved the following:

Unaudited Financial Results for Q2 and half-year ended September 30, 2025.
Statement of Assets and Liabilities as of September 30, 2025.
Statement of Cash Flows for the six months ended September 30, 2025.

The statutory auditors, M/s B S R and Co., have expressed an unmodified review conclusion on the limited review of financial results.

Business Segment

Fairchem Organics is engaged in manufacturing specialty chemicals, specifically Oleo Chemicals and Intermediate Nutraceuticals. The company operates in a single reportable business segment as per IND AS 108 – "Operating Segments".

Investors can access the detailed unaudited financial results on the company's website ( www.fairchem.in ) and the websites of BSE ( www.bseindia.com ) and NSE ( www.nseindia.com ).