Fairchem Organics sees Q2, H1 FY26 revenue and profit slide

Fairchem Organics Limited experienced a challenging Q2 FY26, with revenue from operations decreasing by 14.9% quarter-on-quarter to INR 1,115 Mn, and a volume decline of 19.9%. EBITDA for the quarter stood at INR 42 Mn, resulting in a softened EBITDA margin of 3.77% from 3.97% in Q1 FY26, largely due to firm raw material prices. Profit After Tax (PAT) for Q2 FY26 was INR 8 Mn, with PAT margins at 0.72%. The company reported processing 11,492 MT and selling 10,469 MT, with domestic sales accounting for 91.22% of revenue.

For the first half of FY26, revenue from operations was INR 2,426 Mn, a 20.1% decrease year-on-year. H1 FY26 EBITDA was INR 94 Mn, down 69.2% from H1 FY25, with EBITDA margins at 3.87%. PAT for H1 FY26 was INR 19 Mn, representing a substantial 89.4% decline compared to H1 FY25, and PAT margins of 0.78%. The company cited weaker offtake from the paints segment, discontinuation of prime product exports to the USA, and initial uncertainty compounded by 50% U.S. tariffs on select Indian exports as contributing factors.

Strategic growth product Isostearic Acid exports are seeing a slower-than-expected scale-up due to new regulatory registration requirements in Europe. Raw material prices remained elevated, and Dimer Acid margins were pressured by aggressive Chinese pricing and unchanged 7.5% import duty.