Fairchem Organics Ltd (NSE: FAIRCHEMOR) Q3 2026 Earnings Call dated Feb. 09, 2026
Corporate Participants:
Bhavesh Bipinchandra Shah — Chief Financial Advisor
Nahoosh Jariwala — Chairman and Managing Director
Analysts:
Unidentified Participant
Purvangi Jain — Analyst
Yash Naik — Analyst
Madhur Rathi — Analyst
Ritesh Poladia — Analyst
Shivam Parekh — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Q3 and 9 months FY26 conference call of Fairchem Organics Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. I now hand the conference over to Ms. Purvangi Jain from Valorem Advisors. Thank you. And over to you, ma’. Am.
Purvangi Jain — Analyst
Good afternoon everyone and a warm welcome to you all. My name is Parvangi Jain from Valeriem Advisors. We represent the investor relations of Fairchem Organics Ltd. On behalf of the company, I would like to thank you all for participating in the company’s earnings call for the third quarter and nine months of the financial year 2026. Before we begin, a quick cautionary statement. Some of the statements made in today’s con call may be forward looking in nature. Such forward looking statements are subject to risks and uncertainties which could cause actual results to differ from those anticipated.
Such statements are based on management’s belief as well as assumptions made by and information currently available to the management. Audiences are cautioned not to place any undue reliance on these forward looking statements in making any investment decision. The purpose of today’s earnings conference call is purely to educate and bring awareness about the company’s fundamental business and financial quarter under review. I would now like to introduce you to the management participating with us in today’s call. We have with us Mr. Nahush Zariwala, Managing Director and Chairman and Mr. Bhavesh Shah, Chief Financial Officer. Without any delay, I would now like to ask Mr.
Bhavesh Shah to begin with his opening remarks. Thank you. And over to you sir.
Bhavesh Bipinchandra Shah — Chief Financial Advisor
Thanks Ms. Purvangi. And good afternoon everyone. Welcome to our earning call for Q3 and nine month ended financial year 2026. For the quarter under review, the revenue for the operation for the quarter stood at rupees 100 crores reflecting a 12% year on year decline. EBITDA for the quarter was rupees 4 crore with a better margin of 4.2%. The adjusted net profit after tax for the quarter without considering the exceptional items to debt around 60 lakhs translating PAT margin of 0.6%. We have recognized rupees 88 lakhs as exceptional item due to implementation of new labor code.
For the nine month ended FY26 the revenue from operations stood at 343 crores, a decline of 18%. EBITDA for the period was 14 crores reflecting a decline of 65% with a EBITDA margin of 3.97%. The net profit after tax before exceptional item stood at 2.5 crores with a bit of margin of with a pat margin of 0.73%. The domestic sale contributed 91% of the total revenue. With that I would like to hand over to Mr. Nahoj Jeruala, Managing Director for key operational highlight and strategic initiatives.
Nahoosh Jariwala — Chairman and Managing Director
Thank you Bhavish Good afternoon everyone. The third quarter was a challenging one for the company marked by multiple external headwinds across demand, pricing and global trade dynamics. During the quarter overall performance was affected primarily by lower offtake from the paint segment and this continuation of exports of our key products to US markets which weighed on volumes and realization. Profitability during the period was impacted by elevated raw material prices and availability of lower price imports especially from China which limited our ability to fully pass on the cost increase to customers. The paint sector witnessed lower material of take during the quarter which appears to be linked to market share disruptions following of entry of new players.
Raw material prices remained elevated due to higher custom duty levels currently at around 16.5% for our raw materials and margins on our Limer acid segment continue to remain under pressure impacted by aggressive pricing from Chinese suppliers and the unchanged 7.5% import duty which constrained our pricing flexibility. Demand conditions were further affected by uncertainty around US trade policies which impacted our export viability during the quarter and added pressure on overall product mix. Despite the near term challenges, we remain cautiously optimistic about the outlook. The recent announcement of labor playing field tariff structure in US along with progress toward proposed free trade agreement with UK EU provides improved visibility for our export recovery.
As you are aware that our isosteric business which is more export oriented business and so this trade agreements I am sure are going to help us a long way. I mean to recall and hold proverb when going gets tough, the toughs get going. We at fairchem have taken up this thought process very positively and we have started working on multiple areas right from energy saving by undertaking in depth detailed energy audit by undertaking trials utilizing catalyst which can help us in reducing our catalyst cost by replacing the imported catalyst with domestic ones at the same time developing newer products from the current set of products which can find application in different areas, some multiple things we have started working and I’m sure that in long term all this is going to help our company to come back to good old days.
Now with that I open the floor for question and answer session.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to withdraw yourself from the question queue, you may press star and two participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Yash Nayak with Kamakia Wealth Management. Please go ahead.
Yash Naik
Yeah, Am I audible?
Bhavesh Bipinchandra Shah
Yes.
Yash Naik
Yeah. Thank you for taking my question. So sir, first question is regarding the by which quarter do we expect the volume to return to the normal weight and the EBITDA margin to become normalized? So any timeline on the rate we can able to see the recovery from the let’s say the next quarter or maybe the next year. Any comment on this?
Nahoosh Jariwala
The way things are going with the changes in tariff structure in US and signing of trade agreements, we are fairly confident that the worst quarter is behind us. And now every quarter we will see volume and value growth happening the way I mean the outlook looks very promising.
Yash Naik
So can we expect a double margin EBITDA in FY27?
Nahoosh Jariwala
Obviously we’ll be,
Bhavesh Bipinchandra Shah
we will be seeing. Good numbers from surely from H2FY27 .
Nahoosh Jariwala
And see once the answer your type once the volume growth happens, volume and value growth happens automatically the EBITDA margins are going to go up.
Yash Naik
So sir, as you mentioned we can. Able to see a good number from S2FY27, right?
Bhavesh Bipinchandra Shah
Yes jump it will gradually improve and H2FY27 we should be seeing a better numbers.
Yash Naik
And sir, now since the there is a trade deal with the US as well so can we see the off day in the ISO silicon? How will you see that?
Nahoosh Jariwala
Exactly. Yes, exactly, exactly. Because see since last 6, 8 months nothing was happening on that front in in fact to the extent that no sampler sample approvals where work was also not been taken up by the US customers. So now with this happening already people have started, we have started receiving mails for the same and we have started working on it. So we are pretty confident that in next six months things should be back on track.
Yash Naik
Okay, yeah, that’s it for my if. I have anything I will join directly. Thank you so much.
Nahoosh Jariwala
Thank you.
operator
Thank you ladies and gentlemen, if you wish to ask a question to the management you may press star and 1. The next question comes from the line of Madhur Rati with countercyclical investments. Please go ahead.
Madhur Rathi
Sir. Thank you for the opportunity. Sir, I wanted to understand regarding the Chinese reduction and rebates of these chemically modified fats. And so can we expect that to help us improve our realizations going forward?
Nahoosh Jariwala
To be frank, like you, we have also heard that from 1st of April China on 700 chemical products, China is going to remove export incentives and but at the same time we don’t know whether they haven’t given out the names of the products on which they are. The reduction, I mean the subsidy is going to be removed. If DIMER falls under that, then automatically we’ll see a 12 or 13% price hike coming from the Chinese players. So that would help us. Yeah, that would help us a lot. Sales price would go up by that percentage.
Madhur Rathi
And sir, would it be fair to assume that whatever sales price that additional sales majority of that would flow to our ebitda?
Nahoosh Jariwala
Yes, obviously.
Madhur Rathi
Right. Sir, I wanted to understand regarding this US and EU FTA sir, what is the risk of these isoteric acid or the value added product that we are currently manufacturing getting imported to India due to this fta. So if you could just help us understand on that. And how does our cost of production compare?
Nahoosh Jariwala
No, the products, what we are manufacturing in that there is no possibility of any material coming from US to India because in US there are for as for example dimer. No one is manufacturing dimer fatty acid in US at the same time for isosteric acid. No one is manufacturing isosteric acid in us. So I mean it’s not going to be a problem for us.
Madhur Rathi
Not for us, but with EU as well. Is that the case?
Nahoosh Jariwala
In fact we are selling our isosteric acid to eu so it doesn’t make any difference to us.
Bhavesh Bipinchandra Shah
India is not a huge market.
Nahoosh Jariwala
Yeah. And for isosteric acid India is, India doesn’t. It’s a very, very small market. Major market is Europe and us.
Madhur Rathi
So, so I mean how does. Sorry sir, please go ahead.
Nahoosh Jariwala
No, so it doesn’t make any difference to us. It’s not going to be negatively impacted in any way for us. Right, right.
Madhur Rathi
And sir, how does our cost of production compare for isosteric acid versus these European manufacturers here?
Nahoosh Jariwala
Obviously, obviously we are fairly competitive because our cost structure is compared to those companies is much lower third.
Madhur Rathi
Would it be lower by 20, 30% or even further?
Nahoosh Jariwala
No, that is a percentage wise. It would be very tough for us to spell out because I mean that that type of analysis is not going to be possible because all these companies manufacture multiple products. So how they divide the cost structure it won’t be possible for us to know.
Bhavesh Bipinchandra Shah
Right? Yeah. One thing is sure that we have done this capacity addition at a fraction of cost compared to what it would have happened in developed nations.
Madhur Rathi
Got it. And so just a final question sir, if you could just help us understand on the animal feed product that we were expected to launch in Q3 and sir, the new product that we were expecting to launch in Q4 or Q1.
Nahoosh Jariwala
Animal feed plant is ready if the plant is ready and for which we have already applied for the GMP certifications. Once the GMP certificate comes we’ll start the plant. So everything is ready as regards that plant and the new product equipment also. I mean we expect it to go in production by third quarter for sure.
Madhur Rathi
Sir, what kind of capacity are we adding on this product?
Nahoosh Jariwala
You know it’s initially we are doing a very small cap, small capacity. Once we are absolutely satisfied with the quality and once we receive the approvals from our buyers will go in for major capacity expansion. The thing I mean this is something what we have learned based on experience with our isosteric acid because in the new product also we are going to be third or fourth company in the world and so getting approvals from the buyers we have realized that it is taking more than two to three years and so it doesn’t make any sense initially to create a huge capacity.
It’s better to create a small capacity at a lower capex, get the approvals and then go for expansion.
Madhur Rathi
Got it. So so this animal feed capex, I understand that they will do it. So will this be. Will the raw material for the animal feed be supplied from our oil refine the waste oil refining capacity that we have?
Nahoosh Jariwala
Yes, yes, yes. It’s a forward integration. It’s a forward integration.
Madhur Rathi
Got it. Anjay. What, what kind of margin profile can we expect from this product?
Nahoosh Jariwala
Obviously it will be anything forward integration, the margins would be better but
Madhur Rathi
okay. So and the other product that we are planning to launch.
Nahoosh Jariwala
Then no, I won’t be able to share the name of the product right now. Launch of the product. We let you know.
Madhur Rathi
Right. And on this we also mentioned a few quarters ago that we were trying some different raw material to avoid this import duty differential versus our.
Nahoosh Jariwala
Yeah, yeah. Work is going on for that. Work is going on for that.
Madhur Rathi
When can we expect some material impact from the.
Nahoosh Jariwala
Maybe second or third quarter. Maybe second or third quarter.
Madhur Rathi
Okay. Sir, sir, thank you so much and all the best.
Bhavesh Bipinchandra Shah
Thank you.
operator
Thank you. The next question comes from the line of Ritesh Polaria with Girig capital. Please go ahead.
Ritesh Poladia
Yeah, thanks for the opportunity. Sir. You used to give the this volume throughput. Can you give it for this quarter piece?
Bhavesh Bipinchandra Shah
It was 9,850 tons.
Ritesh Poladia
Okay. Another on dimer acid. Are we making profits on the this product?
Nahoosh Jariwala
So at this stage it is. I mean we are just keeping our heads out of water.
Bhavesh Bipinchandra Shah
Yeah. It’s marginal.
Nahoosh Jariwala
It’s very much.
Ritesh Poladia
Okay. It’s very marginal. Okay. And sir, this animal feed, I understand it will reduce the dependence on linolenic acid as it’s a forward integration. How much linolenic acid will convert into this animal filled product?
Nahoosh Jariwala
It’s a forward integration of our palmitic acid stream.
Ritesh Poladia
This is from palmitic acid. Okay. And this new product, what you are talking about, that will come from the that capacity which we have reserved for the new products, right?
Nahoosh Jariwala
Yes. Yes.
Ritesh Poladia
Okay. Yeah, that’s all from my side. Thank you very much.
Nahoosh Jariwala
Thank you.
operator
The next question comes from the line of Dhesian with eternal capital. Please go ahead.
Unidentified Participant
Yeah. Hi. Thank you so much for the opportunity. Sir, I just wanted to ask you looking ahead, so let’s say for FY27, how can we expect better revenue growth and profitability? Like what are the drivers that will take the company over there?
Nahoosh Jariwala
One is we’ll be able to open it. With the signing of the treaty with us, the US market would open up for the isosteric acid and dimer fatty acid. That is one thing. And second thing is we expect the export incentive to go 13%. Export incentive. What Chinese dimer players are getting would go away. So in turn they’ll have to increase the price. And so our price realization on dimer fatty acid would also go up. In which case we can ramp up our production also. So it’s going to be a combined effect of everything.
Unidentified Participant
Right sir, very well mentioned about the US So my second question was upon that only. So what is the level of like you know, revenue split that you’re expecting in the next 12 months from US and Europe? And if the trade deals do actually come into.
Nahoosh Jariwala
Obviously our target is to go much, much, much. I mean from 9% we want to go up as high as 50% on exports. So I mean that’s obviously we are working on that.
Unidentified Participant
Right sir. And I just wanted to understand what.
Yash Naik
Is the on ground demand for the paint segment Right. In these months like January and at least the first week of February, how is it going? And any signs?
operator
No, we are, we don’t see any major upswing but at the same time there is no downslide. So I mean, it’s above average. I would say above average.
Yash Naik
Understood.
operator
Okay, so that’s it.
Yash Naik
My side. Thank you so much. That gives me a lot of clarity.
operator
Thank you. Before we take the next question, we would like to remind participants that you may press star N1 to ask a question. The next question comes from the line of Madhurati with countercyclical investments. Please go ahead.
Madhur Rathi
Now with India US trade deal. If we have allowed zero duty import of soya bean oil which is our raw material, so can we import soya oil from us, give it to our refinery partners and take the byproduct from them and then export our end product duty free to the US I mean.
Yash Naik
Duty free means just a second. For every 100 kg of soya bean oil, 1% of our raw material is getting generated. So I don’t care. As a company, we cannot take risk of 1 to buy. To get 1% material, take a risk of 99% of vegetable oil which is a commodity where prices go up and down every moment. So that is something we won’t dabble ourselves. It’s not our core competency trading in commodities not our core competency. We will prefer to buy the waste what the refinery from the refineries. We will be importing vegetable oils from US or Brazil or Argentina, wherever.
Madhur Rathi
But our vendors from whom we are buying the byproducts, if they import directly from US soybean oil and then do the edible oil refining and sell the product in domestic market and we buy the byproduct from them and sell the end product to us. Can’t we claim set off of 18% import duty in US?
Bhavesh Bipinchandra Shah
No, I don’t think so. I think the price, the overall price would become favorable with this. If this, this trade actually comes up. See more of soya bean oil starts coming, the raw material prices would come down. So that extent we’ll be benefited.
Madhur Rathi
But have not already. The edible oil prices over the past two years have already come down. If you look at the numbers of listed edible oil companies, their revenues and all have fallen because of the price deflation.
Nahoosh Jariwala
So I mean, but despite that again now they have gone up also in last two months. In last two months as high as 25%, sir.
Madhur Rathi
But during whole of FY20 to FY24 and FY25 and till now FY26 for at least the first half when the. Even when the prices were going down of the edible oil prices, it did not show in our numbers. I mean, we were still getting hit for the same Reason when the edible oil prices.
Nahoosh Jariwala
Time and again we are saying one thing. The raw material that is vegetable oils in India we are getting imported at 16.5% import duty by paying 16.5% import duty. And based on that our raw material is also priced accordingly. And against that if you import dimer fatty acid it is carrying import duty of 7.5%. So effectively we are sufferers because the raw material is having higher import duty but the finished product is having lower import duty. So that is getting affected. That is really the crux. And second thing is on your China is giving exports incentive to diamond manufacturers there.
And so they are in turn are doing dumping. So our problem is that raw material is coming at a higher price. Finished product is coming at a lower price. In addition there is a dumping coming from happening from China. So that’s the reason is not making that much money what it should.
Madhur Rathi
Right sir. And sir, if we compare our FY22 numbers when we did roughly 650 crore revenue versus now we are doing roughly 450 crore revenue in the past 12 months. So basically this roughly 200 crore reduction that has happened in the top line. It has. Basically the realizations have gone down or the volumes also have gone down.
Bhavesh Bipinchandra Shah
Both. Combined effect. Yeah. Because the margins were very less. We were also cautious in accepting the orders.
Madhur Rathi
So now that you are. So firstly if what is the maximum volume? I mean like what is the what? Like you said that 9,800 ton was a volume in the third quarter. So what is the maximum volume? Provided spreads are good. What is the maximum volume that we can do in one quarter? If we operate at full double then. What we did double. Okay, so. Okay. Okay. Okay. Okay. So basically we can do roughly 900 crore revenue just on these current realizations.
Nahoosh Jariwala
Yes, obviously. Obviously.
Madhur Rathi
Okay answer. How much have the prices gone down broadly Percentage wise from FR22 levels from peak level till today?
Nahoosh Jariwala
10 to 15%. You could. 10%. 15%.
Madhur Rathi
So basically sir, now. Now that with every passing quarter you are expecting growth in volume and margins both. Sir, it is only due to the trade deal with the US and Europe. Or is there any additional factor?
Yash Naik
Also. It’S going to be a combined effect because we’ll be with the trade deal happening with we will be able to export our dimer fatty acid there. That is one big thing which is going to happen and which is going to help us increase our volumes. Second thing is we will be able to export more of isosteric acid which will again help us generate better realization. So it is Going to be a combined effect. That’s. That’s the reason we have saying that if things everything settles down well I mean we’ll be back to good old days.
Madhur Rathi
Yes, sure, I’ll join the queue.
Nahoosh Jariwala
Yeah.
Madhur Rathi
Thank you.
operator
Ladies and gentlemen, if you wish to ask a question please press star and 1. The next question comes from the line of Aman Singh, an individual investor. Please go ahead.
Unidentified Participant
Hi sir, just wanted to ask like how the nutraceutical products like tocopherols and steroids performing compared to the Olio candles for doing this slowdown.
Yash Naik
I mean tocopherol business basically all 100 of our materials getting exported to us. So it is since 2/4 the business has been zero.
Unidentified Participant
Okay sir, so with the like the reciprocal trial, with the reduction in the reciprocal can we see any increase from that segment going forward?
Yash Naik
We’ll have to again revive the whole thing. Okay so because already the US would have switched on to other suppliers.
Unidentified Participant
Okay sir and my one more question is key. What was the STAR like rational behind the pipe back Given the current pressure and the margins and the cash flows?
Bhavesh Bipinchandra Shah
No, there is no pressure in cash flow. In fact the complete volume increase which is going to happen in next two years is going to come from the current capacity only. Since our capacity utilization is close to around 55% we don’t expect any further capex to happen. So this was one way to increase the promoters in the company.
Unidentified Participant
Okay sir. Okay sir. Thanks for the opportunity.
Bhavesh Bipinchandra Shah
Thank you.
operator
Thank you. Participants who wish to ask a question to the management may press star and one. The next question comes from the line of Madhurati with countercyclical investments. Please go ahead.
Madhur Rathi
So earlier we had given a guidance of thousand crore top line with 23% EBITDA margin which we had subsequently withdrawn. So. So now with the trade deal is that guidance can we expect for FY27 or 28? In your best judgment as things stand when can shareholders. I mean. I mean it’s not advisable to give any forward looking statements. We never do exactly in figure terms what we say is we’ll be back to good old days. That’s the most I can say, right sir. And sir that on the trade side sir, we got a good deal now sir, what has to happen? What should shareholders track for which can be the next trigger for us?
Nahoosh Jariwala
I mean one is the reduction in the import duty on edible oil is one thing that will keep an eye. What else are the main variables that can basically change our fortunes for the better? I mean now no it’s Everything is more importantly if the raw material prices come down that is based on the duties what are going to be on the crude oils which you said you will be tracking. So that is the one main thing. Second thing is automatically for, I mean we get raw materials a reasonable price and China removes the export incentive automatically the realization for us would go up in timer and we will start manufacturing more and more. It’s not that we don’t have customers. India doesn’t have a market and we don’t have manufacturing capability.
No, everything is there in place. It’s because the margins are not there though it didn’t make any sense for us to just go for volume and make make no profit or losses.
Madhur Rathi
Regarding the paint sector. Sir, any update over there? Are we seeing some relief on the realizations or are the customers asking for a lower price or is a price.
Nahoosh Jariwala
Hike over there because of the competition? They are obviously asking for lower and lower prices. So that’s the reason we have started looking at other applications which we can use our for. I mean where our Linux can find any other application though which might be based on some modification in the process or improvement in quality in some way. So that’s the work what we have already started doing and it’s showing the trend looks positive.
Madhur Rathi
And sir, like you mentioned earlier that we are sourcing our raw material from around 80 to 100 refineries. Whereas sir, I understand there must be thousands of refineries in India. So. So are we making any efforts to basically for new vendor development so that we can get at a more competitive price. See this 80 to 100 refineries constitute more than 80 to 90% of India’s vegetable oil processing. So I mean the other guys would be marginal players. And this 80 to 100 refineries can give us 100% of our raw material requirement. So it’s not that we are going short on raw material or anything. No, it’s not that availability is there sir. So 80 to 100 that means let’s say for example this Marico and Sundrop etc all, all of them. Adani, Velmar etc we are all. Are our vendors already.
Nahoosh Jariwala
Yes.
Madhur Rathi
Okay. And sir, are we the only buyer of these by products from them or we are competing for these by products and third players also?
Nahoosh Jariwala
No, there are other applications also.
Madhur Rathi
For example what are the other applications?
Nahoosh Jariwala
Soap, Biodiesel.
Madhur Rathi
Okay.
operator
I would request you to please come back in the queue for further questions. Thank you. The next question comes from the line of Shivam Parekh with value wise wealth management Please go ahead.
Shivam Parekh
Hi, sir. Good afternoon. Thanks for the opportunity. So my question was. Last quarter we had mentioned that we had lost market share in dimer asset. So did it continue in this quarter as well? And also like we.
Nahoosh Jariwala
We had mentioned in our conference, in our investor presentation.
Shivam Parekh
Hello. We have not lost any market share. Okay. What we are saying is that as margins were very low, we were not taking 100 orders. Okay. If someone wanted 100 tons, we would supply them 50 tons, 40 ton. Okay. Also sir, we were facing competition from a new entrant as well. So they can continue.
Nahoosh Jariwala
They are very marginal.
Shivam Parekh
Clear. Okay. They are. So our volumes would not be hampered going further.
Nahoosh Jariwala
Not at all. Not enough.
Shivam Parekh
Okay, sir, got it. Thank you so much.
operator
Thank you. The next question comes from the line of Kripa Kandar, an individual investor. Please go ahead.
Unidentified Participant
Hello. Hello.
Yash Naik
Yes ma’, am. You’re audible.
Unidentified Participant
Yeah, actually I just wanted to ask something on the dimer asset front. So apart from the dimer asset right now which faces competition from Chinese companies, why are we not able to, you know, pass on this increasing cost of import duty to the customer side?
Nahoosh Jariwala
Because then if I try to increase my prices, they’ll import from China. It’s very simple. The end of the day I have to be competitive. If the landed price of Chinese dimer is 100 rupees, I. No one is going to give me hundred and one. I’ll have to match that pricing. At the most I’ll be getting, being the domestic player, I’ll be getting the preference of. I mean they’ll be buying first option, they’ll buy from me. That’s all who is. I mean no one would do that.
Unidentified Participant
Okay, but then that is the risk that the business would have in.
Nahoosh Jariwala
Yes, yes, obviously. Obviously. Okay.
Unidentified Participant
All right. So got it. Thank you.
operator
Thank you. The next question comes from the line of Sunil with high tech. Please go ahead. Hello, sir, am I audible? Yes, please go ahead.
Unidentified Participant
Yeah. First I would like to congratulate the company and the management for the pivots the company is doing. Because there are two things. One is controllable, other is uncontrollable. Even though lot of headwinds are there in raw material, we are trying to find an alternative. When there is competition from China on one of our product dimer, we are finding to export it to us. When there is an issue with one product which we wanted to do to cover or something, then the market fell, we are devoting to something else. So we are continuously focusing on things which are in our hands which is very Very commendable from the company’s point of view and despite the company’s good efforts, the performance is affected due to the external factors and the share price drop.
And as a very good management we have done a buyback. So I think from the shareholders point of view I should commend you people for all the great work which you are doing on the operational stuff and also the capital allocation stuff. And coming to my question, since now we are looking to target 50% of water neuron exports. As you already said. That next two years there will not be any new capital spent because already we are having a good amount of spare capacity. Can, can we expect to achieve that 50% export turnover in the next three years or five years or whatever it is? Because external factors also are there without any capex or we may require some capex also.
Bhavesh Bipinchandra Shah
I mean we won’t require any capex. Yes, we are capable of doing this. I mean our capacity is absolutely in place and no capex will be required. Nothing, nothing is required.
Unidentified Participant
That’s, that’s very hardening to hear, sir. Second thing is this is like a little bit more longish term question. Let’s say we streamline everything, all these exports and everything in the next five years, let’s say because one or two years is very short amount of time to force your. We are doing your best which we can see in the last three years, in the five years time we streamline all these things and to take the next step. Since a lot of jobs are being affected in western countries because of this artificial intelligence and all these things and everybody is trying to protect their jobs, every country and this is a good man, that inspector which we are in.
So assuming that, let’s say the tariffs come back again in the western countries after the five years or whatever it is when the impact is huge because of our very good global parentage like Fairfax and we are able to prove great extent in our R and D by cracking lot of new stuff which are very difficult to do for anybody in the world. That proves our research capabilities. How comfortable will we be in setting up a plant in a western country? Maybe after five years or seven years? Because we are already having the technical capability here and we have a good parentage in terms of fairy bags obviously.
Bhavesh Bipinchandra Shah
If the opportunity comes, why would we shy away? But at this stage, yeah, at this stage we haven’t thought about it. But I mean that’s no big deal. If opportunity comes, yes, you’ll be ready for it.
Unidentified Participant
Because all these issues which came up in the last two, three years are I believe that they are transient in nature and even though this Some let’s say 50% of the issues persist you taking the pivoting all these things you are trying to remove the effect of all those stuff which you can do in your control so once these things stabilize as a very less people can track this research as you as you. Are able to do it in the. Last five years or 10 years for a long period of time so using the same research, the fruits of research we should be able to do capex in a western country and crack it. That’s what I felt and it’s very heartening to hear it from you also in the very long term, not in the next five years, seven years or 10 years because Fairfax I know that they think very long term in details so that’s the reason I’m asking this question. Sir.
Yash Naik
Yeah.
Unidentified Participant
Thanks a lot.
Nahoosh Jariwala
Yes, thank you. Thank you.
operator
Thank you ladies and gentlemen. We’ll take this as a last question. I now hand the conference over to the management for closing comments.
Yash Naik
Yeah. Thank you everyone for attending the Concord. Hope to see you all back in Q4 Concord. Thank you.
Bhavesh Bipinchandra Shah
Thanks a lot.
operator
Thank you. On behalf of Fairchem Organics Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.