Below is a structured extraction and summary of the relevant and actionable financial information from the Sudarshan Chemical Industries Limited results filing for the quarter ended 30th June 2025 (Q1 FY26):

1. Auditor’s Note

• Standalone Financials:

  • Unqualified review report issued by SRBC & CO LLP.
  • No qualifications or concerns noted.

• Consolidated Financials:

  • Qualified review report with emphasis of matter regarding subsidiary Heubach Colorants India Limited (HCIL):
    • HCIL’s auditors highlighted an ongoing issue related to transfer of certain property, plant, and equipment without Board approval.
    • Pending management review and valuation, the auditors are unable to comment on the consequential financial impact.
    • This matter also affected the audit opinion for FY25.
  • SRBC & CO LLP states except for this matter, nothing has come to their attention indicating material misstatement.

Actionable: Monitor developments on HCIL asset transfer issue as it may impact consolidated results.

2. Financial Performance

Key Financial Figures (₹ Crore)

*EPS not explicitly stated in consolidated but can be approximated from profit and share capital.

3. Detailed Notes / Management Commentary

• Delay in Results Submission:

  • Delay in submission of Q1 FY26 results due to cascading delay from FY25 audited results.
  • Extension sought and granted by stock exchanges.

• Exceptional Items:

  • FY25 included exceptional expenses related to acquisition transaction and integration costs.
  • No exceptional items in Q1 FY26.

• Acquisition of Heubach Group Global Pigment Business:

  • Completed on 3rd March 2025 by Sudarshan Europe B.V. (SEBV), wholly owned subsidiary.
  • Purchase consideration approx. €151.9 million (~₹1,389.9 crore).
  • Funded by external funds and borrowings.
  • Transaction and incidental costs charged as exceptional items in FY25.
  • Provisional Purchase Price Allocation (PPA) done; bargain purchase gain of ₹1,243.9 crore recognized in Other Comprehensive Income (OCI).
  • Final PPA expected within one year from closing date.

• Subsidiary Issue:

  • Heubach Colorants India Limited (HCIL) under review for unauthorized asset transfers; management evaluating legal options. Impact on consolidated results uncertain.

• Foreign Exchange:

  • Standalone: Significant forex gain of ₹56.9 crore in Q1 FY26 (included in other expenses).
  • Consolidated: Forex gain of ₹11.5 crore in Q1 FY26.

• Debt and Capital Structure:

  • Non-convertible debentures (NCDs) of ₹99 crore fully repaid on 18th July 2025.
  • Debt-equity ratio (Standalone): 0.18 times (Q1 FY26).
  • Debt-equity ratio (Consolidated): 1.01 times (Q1 FY26).
  • Net worth (Standalone): ₹2,336 crore (Q1 FY26).
  • Net worth (Consolidated): ₹2,246 crore (Q1 FY26).

• Ratios (Standalone vs Consolidated):

• Stock Options:

  • 23,584 employee stock options allotted on 29th July 2025.

• Board Changes:

  • Appointment of three new directors effective 1st October 2025 (two Independent Non-Executive, one Non-Independent Non-Executive).

4. Segment Information (Consolidated)

• Pigments segment is the dominant revenue and profit contributor.
• "Others" segment includes project engineering and manufacturing businesses; currently marginally profitable or loss-making.

5. Capex, Projects, Corporate Activity

• Acquisition:

  • Completed acquisition of Heubach Group global pigment business (March 2025).
  • Funded by equity raise (₹800 crore QIP in Jan 2025) and borrowings.
  • Integration and restructuring costs of ₹32.8 crore in Q1 FY26 consolidated results.

• Warrants:

  • 980,000 warrants issued to promoter Mr. Rajesh Balkrishna Rathi at ₹1,019.75 each; not yet converted as of 30th June 2025.

• Debt:

  • ₹99 crore NCDs fully repaid on 18th July 2025.

• Legal/Compliance:

  • Ongoing review and potential legal action related to asset transfer issue at HCIL subsidiary.

• Shareholding Changes:

  • Reclassification of certain promoter group shares to public category in FY25.

6. Standalone vs Consolidated

• Both standalone and consolidated financial results are provided and reviewed.
• Consolidated results include 58 subsidiaries and 2 joint ventures.
• Consolidated results reflect acquisition impact from 3rd March 2025.
• Standalone results exclude segment disclosures (only consolidated has segment info).

Summary for Investment Analysis Team

Recommendation:

• Monitor resolution of HCIL asset transfer issue for potential impact on consolidated results.
• Watch integration progress and cost control post Heubach acquisition.
• Strong standalone profitability and cash flow metrics support financial stability.
• Debt levels manageable with recent NCD repayment and equity infusion.
• Segment focus remains on pigments with growth from acquisition.

Please let me know if you require further detailed ratio analysis or specific segment deep dives.