Fairchem Organics reports Rs 10.01 cr Q1 profit as realisation shifts
Management linked domestic-market realisation to lower imports, while higher raw-material costs and supply-chain constraints shaped the quarter.
Filed 27 Jul 2026, 12:53 IST · FAIRCHEMOR (FAIRCHEMOR)
Key takeaways
- Fairchem Organics reported standalone net profit of Rs 10.01 cr in Q1FY27, with operating profit of Rs 31.11 cr on revenue of Rs 176.15 cr.
- Management said lower imports caused by supply-chain constraints improved domestic-market realisation, while higher raw-material costs affected price realisation.
- Other income was Rs 0.35 cr against profit before tax of Rs 13.64 cr, limiting the contribution of non-operating income to reported profit.
Standalone profit reflects operating earnings, not other income
Fairchem Organics generated Rs 31.11 cr of operating profit from Rs 176.15 cr of standalone revenue in Q1FY27. Interest of Rs 1.84 cr and depreciation of Rs 2.74 cr were material deductions before profit before tax reached Rs 13.64 cr. Other income contributed Rs 0.35 cr, so reported profit was not materially supported by that line.
Raw-material costs and imports shaped realisation
Management said higher raw-material costs affected revenue price realisation during the quarter. It also said lower imports, caused by supply-chain constraints, improved realisation in the domestic market. The company therefore saw opposing effects from input costs and import availability rather than a single demand-led explanation for performance.
Four-part plan focuses on cost and product changes
Management said it is working on cost optimisation, product upgradation, new products and geographical diversification. The company also said it plans to adopt another raw material to produce a niche chemical. Management described the macroeconomic environment as uncertain because of the Middle East crisis.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹176 cr |
| Other income | ₹0 cr |
| Expenses | ₹145 cr |
| Operating profit | ₹31 cr |
| Operating margin (%) | 17.66% |
| Interest | ₹2 cr |
| Depreciation | ₹3 cr |
| Profit before tax | ₹14 cr |
| Tax | ₹4 cr |
| Net profit | ₹10 cr |
| EPS (₹) | ₹7.95 |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Domestic-market realisation improved in Q1 FY27 because of lower imports.
New initiatives
- The company is working on four strategies: cost optimisation, product upgradation, new products and geographical diversification.
- The company plans to adopt one more raw material to produce a niche chemical.
Competition
- The company describes itself as a leading manufacturer in India for a substantial part of its overall revenue.
Problems & risks
- The company says macroeconomic conditions are uncertain because of the Middle East crisis.
- Higher raw-material costs affected revenue price realisation in Q1 FY27.
- Supply-chain constraints led to lower imports in Q1 FY27.
What to watch
- Whether standalone revenue builds from Rs 176.15 cr without a similar rise in expenses of Rs 145.04 cr.
- Whether operating margin holds at 17.66% as the company pursues cost optimisation.
- Whether other income remains limited relative to profit before tax of Rs 13.64 cr.