Synopsis:
Fairchem Organics’ board will meet on 20th November 2025 to consider a share buyback, a move typically signalling excess cash, potential undervaluation, and efforts to enhance shareholder value and promoter consolidation.
During Tuesday’s trading session, shares of a company involved in the business of manufacturing speciality chemicals, viz. oleo chemicals and intermediate nutraceuticals, hit a 20 percent upper circuit on the BSE, after the company plans to consider share buy-back.
At 11:28 a.m., shares of Fairchem Organics Limited were trading in green at Rs. 727.75 on BSE, up by around 15 percent, compared to its previous closing price of Rs. 634.25, with a market cap of Rs. 947.6 crores. The stock has delivered negative returns of around 11 percent in one year, and has fallen by more than 5 percent in the last one month.
What’s the News
According to the latest regulatory filings with the stock exchanges, a meeting of the Board of Directors of Fairchem Organics Limited is scheduled to be held on Thursday, 20th November 2025, via audio-visual conferencing to consider a proposal for the buyback of fully paid-up equity shares. The evaluation will be conducted in accordance with the Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, as amended.
A share/stock buyback is a corporate action in which a company repurchases its own shares from existing shareholders, either through a tender offer or via open-market purchases. Typically, buybacks are executed at a premium to the prevailing market price.
Companies undertake buybacks for several reasons: to deploy excess cash when there are limited investment opportunities, to signal confidence that the stock is undervalued, to enhance valuations by reducing the equity base, or to provide a tax-efficient way of rewarding shareholders. Additionally, buybacks may help promoters consolidate their stake in the company.
Financials & More
Fairchem Organics reported a decline in revenue from operations, experiencing a year-on-year decrease of around 20 percent, from Rs. 138.6 crores in Q2 FY25 to Rs. 111.5 crores in Q2 FY26.
Revenue contracted by nearly 15 percent QoQ in value terms and 20 percent YoY in volume terms, driven by weaker demand from the paints segment and the discontinuation of exports of its prime product to the United States. Likewise, the company’s net profit decreased during the same period from Rs. 4 crores to Rs. 0.77 crores, representing a decline of around 81 percent YoY.
EBITDA margin softened marginally to 3.77 percent in Q2 FY26 compared with 3.97 percent in Q1 FY26, largely impacted by firm raw material prices and subdued operating leverage.
Fairchem Organics Limited is engaged in the business of manufacturing speciality chemicals, viz. oleo chemicals and intermediate nutraceuticals. Its key oleo chemical offerings include Dimer Acid, Linoleic Acid, Palmitic Acid, Monomer Acid, Isostearic Acid, while its nutraceutical products include Mixed Tocopherols and Sterol concentrate.
The company serves a strong customer base that includes marquee industry players such as Asian Paints, Huber, Arkema, Quaker and more. It is one of the leading domestic producers of Linoleic Acid and Dimer Acid – two high-demand products that contribute significantly to the company’s revenue and benefit from a large addressable market in India. Its nutraceutical products, including Mixed Tocopherol Concentrate and Sterol Concentrate, cater to FMCG and food additives.
The company is also the only manufacturer of Isostearic Acid in India, exporting this product to multiple international markets across the United States, Europe, South America, and Southeast Asia. Fairchem plans to expand its export footprint further by entering additional countries in the near future.
Written by Shivani Singh
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