Sudarshan Chemical Industries Limited – Q1 FY26 Results Summary
Announcement Date: 23 September 2025
Key Financial Metrics:
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Standalone:
- Revenue: ₹531.2 crore (↓8.4% YoY, ↓24.5% QoQ)
- Profit After Tax (PAT): ₹73.3 crore (↑78.4% YoY, ↑227.7% QoQ)
- Operating Margin: 22.38% (vs. 15.85% YoY)
- Net Profit Margin: 13.78% (vs. 7.09% YoY)
- EPS (Basic, after exceptional): ₹9.3 (vs. ₹5.9 YoY)
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Consolidated:
- Revenue: ₹2,506.9 crore (↑295% YoY, ↑85.8% QoQ) reflecting acquisition impact
- PAT: ₹55.0 crore (↑87% YoY, significant QoQ improvement from ₹0.4 crore)
- Operating Margin: 7.67% (vs. 12.72% YoY)
- Net Profit Margin: 2.19% (vs. 4.65% YoY)
- EPS (Basic, attributable): Approx. ₹6.0
Balance Sheet Highlights:
- Debt-equity ratio: Standalone 0.18x; Consolidated 1.01x (post-acquisition increase)
- Net worth: Standalone ₹2,336 crore; Consolidated ₹2,246 crore
- ₹99 crore NCDs fully repaid in July 2025
- Equity infusion of ₹800 crore via QIP in Jan 2025
- 23,584 employee stock options allotted in July 2025
Management Commentary & Key Developments:
- Acquisition of Heubach Group global pigment business completed March 2025 for approx. €151.9 million (~₹1,390 crore), funded by equity and borrowings.
- Provisional Purchase Price Allocation recognized a bargain purchase gain of ₹1,243.9 crore in OCI; final PPA pending.
- Integration and restructuring costs of ₹32.8 crore charged in Q1 FY26 consolidated results.
- Ongoing issue at subsidiary Heubach Colorants India Limited (HCIL) regarding unauthorized asset transfers; auditors issued qualified opinion on consolidated results due to this matter. Management evaluating legal options; impact uncertain.
- Significant forex gains recorded: ₹56.9 crore standalone, ₹11.5 crore consolidated in Q1 FY26.
- Board changes effective 1 October 2025: appointment of three new directors.
Segment Performance (Consolidated):
- Pigments segment: ₹2,456.6 crore revenue in Q1 FY26, up from ₹589.5 crore YoY; EBITDA ₹192.2 crore.
- Others segment (project engineering and manufacturing): marginally profitable with ₹50.4 crore revenue.
Outlook:
- No explicit forward guidance provided. Management highlights ongoing integration efforts post-acquisition and monitoring of subsidiary legal issues.
Risks / Caveats:
- Qualified audit opinion on consolidated results due to unresolved HCIL asset transfer issue; potential impact on future consolidated financials.
- Integration costs and acquisition-related expenses may continue to affect margins in near term.
This summary captures the key financial and operational highlights for Sudarshan Chemical Industries Limited’s Q1 FY26 results, emphasizing acquisition impact, profitability, and ongoing risks.