Fairchem Organics Q2 FY27: standalone PAT surges 13x YoY to ₹10.17 Cr, OPM tops 10%
PAT +1216.6% YoY · revenue +49.68% · margins expanding
₹166.92 Cr
+49.68% YoY
₹10.17 Cr
+1216.6% YoY
6.09%
+5.4pp YoY
₹8.07
Fairchem Organics' standalone PAT came in at ₹10.17 Cr for Q2 FY27, up roughly 13x from ₹0.77 Cr a year ago, on revenue of ₹166.92 Cr, up 49.7% YoY from ₹111.52 Cr. There were no exceptional items in either period, so the YoY jump is a clean, organic comparison rather than a base-effect artifact — unlike the year-ago quarter, which was depressed by weak utilization and a thin 0.69% net margin. Sequentially the picture is softer: revenue fell 5.2% QoQ from ₹176.15 Cr, even as PAT edged up 1.5% QoQ, meaning the entire sequential profit gain came from margins rather than volume. OPM (EBITDA/revenue) was ~10.51% this quarter versus 3.76% a year ago and 10.14% last quarter, while NPM rose to 6.09% from 0.69% YoY and 5.67% QoQ — margins expanded on both comparisons even as topline cooled sequentially.
Q2 FY-2027 vs prior quarters
On management's own prior guidance (from the Q1 FY27 call), the company had targeted 5-7% quarterly volume growth and no change to margin/revenue targets; this quarter's 5.2% QoQ revenue decline misses that sequential growth marker even though the margin target was upheld with OPM holding above 10% for a second straight quarter. The filing gives no utilization or volume data, so progress toward the stated 70-75% capacity utilization goal (from a 60% base) and the planned Q2 FY27 launch of the new 40K MT oleochemical product cannot be confirmed from these numbers alone. No management press release was available to cross-check the quarter's framing, and no broker previews or consensus estimates for this specific quarter turned up in a search, so street comparison is unknown. The only other board action this quarter was approval of a related-party land purchase (₹12.01 Cr, two parcels totalling 6,182 sq. m.) from the Chairman & Managing Director and relatives, done at arm's length and unrelated to the P&L print.
The stock went into the print at ₹763.35, up 18.1% over the past month of trading.
For context: this is the second-highest quarterly PAT of the last 6 quarters; PAT has now risen for 3 consecutive quarters.
What the summary numbers don't show
EPS ₹8.07 (not annualised) vs ₹0.59 YoY and ₹7.95 QoQ
FY27: Capacity utilization target 70-75% (vs 60% now), targeting 5-7% quarterly volume growth; Isostearic: 1-2 years to >80% utilization; No change to margin or revenue targets; New oleochemical product to launch Q2 FY27 with 40K MT capacity, margins better than current.
— This quarter: missed
W1
QoQ revenue fell 5.2% against management's stated 5-7% quarterly volume growth target — watch Q3 FY27 to see if this is a one-off dip or a trend reversal
W2
Capacity utilization progress toward the 70-75% target (from a 60% base) was not disclosed this quarter — look for utilization/volume commentary next quarter
W3
New oleochemical product (40K MT capacity) was slated for a Q2 FY27 launch per management's Q1 call — filing does not confirm commissioning status
Figures reported in ₹ Lakhs, converted to Crore. No exceptional items this quarter (last exceptional item of ₹88.27 Lakh was a FY26 full-year Labour Code provision, not in either compared quarter). Company has no subsidiary/associate/JV (Note 4), so no consolidated statement exists — standalone is the only basis. Board also approved a related-party land purchase (₹12.01 Cr) at the same meeting.