Fairchem Organics keeps profit steady as quarterly revenue falls 5.24%
Lower interest costs and a reduced tax rate offset the sequential decline in revenue and operating profit.
Filed 22 Oct 2026, 16:34 IST · after market close · FAIRCHEMOR (FAIRCHEMOR)
Key takeaways
- Standalone net profit rose 1.60% QoQ to Rs 10.17 cr even as revenue fell 5.24%.
- Operating margin improved 0.37 percentage points as expenses declined 5.62%, faster than revenue.
- Interest expense fell 35.87% and the tax rate dropped 1.06 percentage points, while other income was only 1.1% of pre-tax profit.
Revenue declined, but pre-tax profit held up
Fairchem Organics reported standalone revenue of Rs 166.92 cr in Q2FY27, down 5.24% QoQ, while operating profit fell 1.85%. Expenses declined faster than revenue, at 5.62%, lifting operating margin by 0.37 percentage points. Pre-tax profit was almost flat, rising 0.07%, and net profit increased 1.60%.
Lower interest and tax costs supported earnings
Interest expense fell 35.87% QoQ to Rs 1.18 cr, helping keep pre-tax profit stable despite weaker revenue. The tax rate declined by 1.06 percentage points to 25.51%, which also supported the increase in net profit. Other income contributed just 1.1% of pre-tax profit, so earnings were not materially dependent on that line.
Management flags niche chemicals and geographic diversification
Management said the company plans to adopt another raw material for producing a niche chemical. The company also said it is pursuing geographic diversification alongside product, cost and raw-material strategies. Management said macroeconomic conditions remain uncertain because of the Middle East crisis.
Results were filed after market close
The standalone results were filed after market close on 22 October 2026. The stock's immediate response is therefore not part of this note.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹167 cr | ₹176 cr | -5.24% |
| Other income | ₹0 cr | ₹0 cr | -57.14% |
| Expenses | ₹149 cr | ₹158 cr | -5.62% |
| Operating profit | ₹18 cr | ₹18 cr | -1.85% |
| Operating margin (%) | 10.51% | 10.14% | — |
| Interest | ₹1 cr | ₹2 cr | -35.87% |
| Depreciation | ₹3 cr | ₹3 cr | +4.01% |
| Profit before tax | ₹14 cr | ₹14 cr | +0.07% |
| Tax | ₹3 cr | ₹4 cr | -3.87% |
| Net profit | ₹10 cr | ₹10 cr | +1.60% |
| EPS (₹) | ₹8.07 | ₹7.95 | +1.51% |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- The company plans to adopt one more raw material to produce a niche chemical.
New initiatives
- The company is pursuing geographical diversification alongside product, cost and raw-material strategies.
Problems & risks
- The company said macroeconomic conditions are uncertain because of the Middle East crisis.
What to watch
- Whether revenue recovers from Rs 166.92 cr after the 5.24% QoQ decline.
- Whether operating margin holds above 10.51% after its 0.37-point sequential improvement.
- Whether interest expense remains below Rs 1.18 cr and the tax rate below 25.51%.