Fairchem Organics Ltd(FAIRCHEMOR)

NSE: FAIRCHEMORBSE: 543252

₹ 744.3-1.82%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 938 crWebsite: www.fairchem.inUpdated: 23 Oct 2026

About

Fairchem Organics makes oleochemicals and specialty fatty acids, including linoleic acid for the paint industry, dimer acid and isostearic acid, from a single plant at Sanand in Gujarat. The plant has 80,000 MT of capacity, and the company sold 44,000 MT in FY26 on revenue of Rs 459.65 Cr. The FY25 annual report calls it the leading Indian producer of dimer acid and the only Indian maker of the kind of linoleic acid used in superior-grade paints.^[1][2][3]

Business and products

The company reports a single segment, Speciality Oleo Chemicals & Intermediate Nutraceuticals, with revenue of Rs 536.29 Cr in FY25 vs Rs 618.31 Cr in FY24.^[3][4]
Its main products are dimer acid, linoleic acid / soya fatty acid, isostearic acid and other distilled fatty acids (FY25 annual report).^[3]
It is the leading Indian producer of dimer acid and competes mainly with Chinese suppliers in India. It is the only Indian maker of the kind of linoleic acid used in superior-grade paints (FY25).^[3]
Isostearic acid, developed in-house for lubricants and cosmetics, was launched in FY25. The annual report says only 3 to 4 companies make it worldwide.^[3]
It also exports natural tocopherols and sterols, which are intermediate nutraceuticals. It kept this business limited in FY25 because export prices did not pay well.^[3]
The company has no subsidiaries, associates or joint ventures, and had 227 employees as at March 31, 2025.^[3]

Product mix

Linoleic acid, sold to the paint industry, was about 42% of revenue in Q1 FY27. Management put it at 40% and does not intend to reduce this dependence.^[1]
Linoleic acid's share of revenue fell from ~40% in Q1 FY26 to ~33% in Q2 FY26. Dimer acid's share rose from 27% to 33%, so the two together held at ~65%.^[5]
Isostearic acid, used in cosmetics, was 4% of revenue in Q1 FY27.^[1]
All mixed tocopherols output was exported to the US. This business had zero revenue for two quarters as of Q3 FY26.^[6]

Plant, capacity and costs

The single plant is at Village Chekhala, Taluka Sanand, District Ahmedabad, Gujarat. The registered office is inside the plant premises.^[3]
Capacity utilisation on the 80,000 MT capacity was ~60% in Q1 FY27, up from ~55% in FY26.^[1]
Management targets 70-75% utilisation by the end of FY27, adding about 5% per quarter. In the Q4 FY26 call the FY27 target was 75-80%.^[1]
In Q2 FY27 the import duty on crude soya oil was cut from 16.5% to 11.0%. Management expects this to improve raw material availability and utilisation during the year.^[7]
Raw materials are by-products of vegetable oil refineries that process soft crude vegetable oils (FY25).^[3]
An energy conservation programme completed last year cut power consumption by more than 30% and solid fuel consumption by more than 35%.^[1]
The imported catalyst has been replaced with a domestically sourced one (Q2 FY27 call).^[7]

Volumes and realisations

Volume sold was 13,500 tonnes in Q1 FY27, against 13,000 tonnes in Q1 FY26.^[1]
Volume sold was 44,000 MT in FY26, against 54,000 MT in FY25. Management held back sales because pricing against Chinese competition was unviable.^[8]
Price realisation in Q1 FY27 rose about 30% from a year earlier and about 25% from Q4 FY26, as Chinese dumping and imports eased.^[1]
H1 FY27 growth came from higher price realisation, driven by higher raw material and imported finished product costs. Domestic realisation improved as imports fell.^[7]
The cash conversion cycle was 76 days in H1 FY27.^[7]

Customers and exports

It sells directly to makers of epoxy hardeners, paints, printing inks, lubricants, cosmetics, pet food, pharma products and soaps, without dealers or distributors (FY25).^[3]
The FY25 annual report cites customer and supplier relationships going back more than 28 years.^[3]
Exports were 7-8% of revenue in Q1 FY27. Domestic sales were 91% of revenue in 9M FY26.^[1]
Management aims to raise exports initially by 25% and eventually to 50% of sales. In Q2 FY27 it said US tariffs are now at a level playing field and pointed to the UK/EU FTAs.^[7]
A 50% US tariff stopped dimer and isostearic acid exports to the US in Q2 FY26. Commercial dimer acid exports to the US restarted on a small scale around March 2026.^[5][8]
Isostearic acid has cleared all five approval steps at a couple of cosmetic buyers and reached the fourth step at others (Q1 FY27). Approval is slow in Europe and Japan.^[1]
The paint sector, the main market for linoleic acid, began recovering in March 2026, and the recovery continued into Q1 FY27.^[8]

New products and expansion

The bypass fat plant, which uses PFAD, was commissioned in Q1 FY27. Revenue is expected from Q3 FY27 onwards, ramping slowly.^[1]
The Q2 FY27 pipeline includes distilled dimer, low titre linoleic acid for oil drilling, and one more raw material for a niche chemical.^[7]
A new oleochemical product made with an in-house process was due to enter trial runs in Q2 FY27. Initial capacity is ~8,000 MT, scaling to 40,000 MT over five years.^[1]
Management gives the new product revenue potential of INR 800-1,000 crores (Q4 FY26 call).^[8]
No major capex is planned in FY27 apart from energy-saving investments with a payback of under 4 years.^[8]
R&D spending was Rs. 28.62 lakhs in FY25.^[3]

Recent developments

A share buyback of INR 340 Mn was completed in January 2026. Promoter holding rose from about 61% to 63.25%.^[6]
Bhavesh Shah became CFO from November 15, 2025, succeeding Rajen Jhaveri. Jatin Jain was made Company Secretary.^[5]

Market Cap

₹938 Cr

High / Low

₹832 / 428

Stock P/E

67.0

Price / Book

3.7

Book Value

₹209

EPS

₹4.4

No. of Shares

1.26 Cr

ROCE

3.3%

ROE

2.0%

OPM

2.6%

Debt / Equity

0.32

Sales

₹460 Cr

Net Profit

₹6 Cr

Promoter holding

63.2%

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