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:

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:

1. Retirement: Mr. Rajen Jhaveri will retire as Chief Financial Officer and Company Secretary on November 14, 2025.

2. 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.

3. 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:

1. Unaudited Financial Results for Q2 and half-year ended September 30, 2025.
2. Statement of Assets and Liabilities as of September 30, 2025.
3. 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 ).

Fairchem Organics Limited , a leading manufacturer of oleo chemicals and nutraceuticals, has released its unaudited financial results for the first quarter. The company reported mixed performance with increased revenue but decreased profitability compared to the same period last year.

Revenue Growth Amidst Challenges

Fairchem Organics reported total income from operations of Rs. 1,311.97 crore for Q1, representing an 8.5% increase from the previous quarter. However, this figure is down by 20.5% compared to Rs. 1,651.65 crore recorded in the same quarter of the previous year. The company processed 11,699 metric tons and sold 13,062 metric tons of material during the quarter.

Profitability Under Pressure

Despite the quarter-on-quarter revenue growth, the company's profitability took a hit. Net profit after tax stood at Rs. 11.74 crore, a significant decrease from Rs. 138.52 crore in the corresponding quarter of the previous year. This resulted in a substantial decline in earnings per share (EPS) to Rs. 0.90 from Rs. 10.64 year-over-year.

Operational Performance

The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin showed a slight improvement, increasing from 3.64% in the previous quarter to 3.97% in the current quarter. This marginal uptick was supported by lower power and fuel costs but partially offset by higher raw material costs.

Market Dynamics and Challenges

Fairchem Organics faced several challenges during the quarter:

1. Raw material prices remained firm due to elevated global vegetable oil prices, despite a partial rollback of additional customs duties.
2. The Dimer Acid business continued to face margin pressure from aggressive Chinese competition, with the basic customs duty on imported Dimer remaining at 7.50%.
3. Domestic sales accounted for 92.55% of total revenue, while export sales contributed 7.45%.

Future Outlook

Despite the current challenges, Fairchem Organics remains optimistic about its high-value product, Isostearic Acid. The company expects export volumes for this product to rise in a staggered manner over the coming quarters, potentially boosting its performance.

Management Commentary

Nahoosh Jariwala, Chairman and Managing Director of Fairchem Organics Limited, stated, "While we faced headwinds in the form of raw material price pressures and intense competition in certain segments, we are encouraged by the quarter-on-quarter revenue growth. Our focus remains on operational efficiency and expanding our high-value product portfolio, particularly Isostearic Acid, which we believe will drive growth in the coming quarters."

Fairchem Organics Limited continues to navigate a challenging market environment, balancing revenue growth with profitability pressures. The company's ability to leverage its strengths in high-value products and operational efficiencies will be crucial in the coming quarters.