Sudarshan Chemical Industries (506655) Q1 25/26 earnings summary

Executive summary

• Completed integration with Heubach, creating a top-2 global pigment player with a combined annual turnover exceeding €1 billion and a global manufacturing footprint of 19 sites across 11 countries.

• Unaudited standalone and consolidated financial results for the quarter ended 30th June 2025 were approved, reflecting the first full quarter post-acquisition of Heubach Group's global pigment business.

• Q1 FY26 consolidated sales reached ₹2,507 Cr, with adjusted EBITDA at ₹165 Cr and EBITDA margin at 6.6%.

• Integration efforts focused on harmonizing processes, launching unified GTM strategies, and stabilizing operations.

• Recognized for sustainability and ESG excellence, including EcoVadis Gold rating and Mahatma Award 2024.

Financial highlights

• Consolidated revenue from operations for Q1 FY26 was ₹2,507 Cr, up from ₹633.6 Cr in Q1 FY25 and ₹1,349.4 Cr in Q4 FY25, reflecting the impact of the Heubach acquisition.

• EBITDA for Q1 FY26 stood at ₹192.4 Cr, compared to ₹80.5 Cr in Q1 FY25 and ₹127.0 Cr in Q4 FY25.

• Profit before tax (excluding exceptional items) was ₹82.2 Cr for Q1 FY26.

• Exceptional items included integration/restructuring costs of ₹32.8 Cr and a bargain purchase gain of ₹1,243.9 Cr recognized in other comprehensive income.

• Net profit ratio for Q1 FY26 was 2.19%, down from 4.65% in Q1 FY25.

Outlook and guidance

• Expecting improved demand and sales ramp-up in coming quarters, despite current market softness.

• Acquired Group targets EBITDA of €35 million in FY26 and €90–100 million by FY28/29.

• Financial results and ratios for Q1 FY26 and Q4 FY25 are not comparable with previous periods due to the Heubach acquisition.

• Purchase Price Allocation for the acquisition is provisional and will be finalized within one year from the closing date.

• Focus on value capture, customer relationship rebuilding, and functional transformation.