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Earnings · Chemicals · Micro cap

Fairchem Organics posts 8x Q1 profit jump on revenue recovery

Net profit surges to ₹10.01 crore from ₹1.17 crore a year ago. Revenue up 34% to ₹176.15 crore. Specialty chemical demand bounces back.

1 earlier story on Fairchem Organics Ltd.
Mkt cap₹799 cr
P/E144.22×
ROE2.11%
Debt / eq.0.32
Div yld0.16%
₹10.01 cr Q1 FY27 net profit vs ₹1.17 cr YoY

What's new

  • Net profit jumps to ₹10.01 cr from ₹1.17 cr YoY (8x).
  • Revenue rises 34% to ₹176.15 cr.
  • Auditors give unmodified review.

Why this matters

The sharp rebound confirms the cyclical recovery in specialty chemicals. But at a trailing P/E of 144x and ROE of 2.1%, the stock already prices in this turn. The market needs to see whether the momentum sustains through the year.

What we're watching

  • Follow-through in Q2 and Q3.
  • Debt reduction given D/E of 0.32.
  • Management commentary on FY27 demand.

The full read

Fairchem Organics has started FY27 with a bang. Q1 net profit surged to ₹10.01 crore from ₹1.17 crore a year ago, an eight-fold jump, as revenue climbed 34% to ₹176.15 crore. The rebound in specialty chemical demand is unmistakable, and the auditors gave a clean chit. But the market already priced in a turnaround. The stock trades at a trailing P/E of 144x and a market cap of ₹799 crore, leaving little room for error. One quarter does not a cycle make. The next two quarters will tell whether this is a recovery or a spike.

Questions answered

What drove the profit surge?
Revenue jumped 34% to ₹176.15 cr. Net profit grew 756% to ₹10.01 cr, indicating operating leverage and cost control boosted margins.
How does Q1 compare to the previous quarter?
No sequential comparison is available; the filing only provides YoY figures. Previous quarter data was not disclosed.
Is the stock expensive?
Yes, trailing P/E stands at 144x despite the profit jump. The market has run ahead of the earnings recovery, leaving limited room for error.
What is the company's debt level?
Debt-to-equity is 0.32, which is manageable. The balance sheet is not stretched.
Did the auditors raise any concerns?
No. The statutory auditors issued an unmodified limited review conclusion for the June 2026 quarter.
What is Fairchem Organics' market cap?
The company has a market capitalisation of approximately ₹799 crore.
Primary source BSE · NSE · Tijori

An independent reading of the company's own disclosure — the primary filing above is the final word.

Company snapshot

Fairchem Organics Ltd.

Chemicals
₹992 cr
P/E 68.98×

Latest quarter · Jun 2026

Sales₹176 cr
Net profit₹10 cr
Op. margin+10.1%
EPS₹7.95

Strength & growth

Debt / equity0.32×
Current ratio1.63×
  1. 27 Jul 2026 · 12:49 PM IST Fairchem Organics posts 8x Q1 profit jump on revenue recovery
  2. today Fairchem lowers utilisation target, flags margin risk from Chinese dumping