Sudarshan Chemical Industries (506655) Q1 26/27 earnings summary

Executive summary

• Completed integration of Clariant and Heubach, creating a global pigment leader with 19 manufacturing sites across 11 countries and over 4,000 customers, and maintained global leadership in pigments with a robust product portfolio.

• Achieved strong profitability momentum in Q1 FY27, with significant improvements in EBITDA and net debt reduction compared to previous periods.

• Established a unified culture, filled leadership gaps, and set up a second global headquarters in Frankfurt, with SAP implementation underway.

• Unaudited standalone and consolidated financial results for the quarter ended 30th June 2026 were approved, showing strong revenue and profit growth year-over-year.

• In-principle approval was granted for internal restructuring via acquisition of a 70.26% stake in a step-down subsidiary, Sudarshan Colorants India Limited, to be held directly.

Financial highlights

• Q1 FY27 consolidated revenue from operations was ₹2,642.1 crore, up 5.4% year-over-year; business EBITDA reached ₹247 crore, reported EBITDA was ₹266 crore, and consolidated net profit was ₹103.4 crore.

• Pigment segment Q1 FY27 revenue was ₹2,604.4 crore, with EBITDA at ₹268.8 crore; acquired group reported EBITDA of ₹146 crore.

• Earnings per share for Q1 FY27 was ₹12.3, up from ₹6.0 in Q1 FY26; return on capital employed improved to 22.7%.

• Net debt reduced to ₹531 crore, with a net debt/EBITDA ratio of 0.2 and net debt to equity ratio at 0.2.

• Standalone revenue from operations for Q1 FY27 was ₹732.7 crore, up from ₹531.2 crore in Q1 FY26.

Outlook and guidance

• Maintains FY27 guidance of €700 million revenue and €35 million EBITDA for the acquired group, despite strong Q1 performance.

• No revision to guidance due to geopolitical uncertainties; will reassess after Q3.

• Focus remains on value capture, cost reduction, and working capital release, with continued integration and synergy capture.

• Expects margin improvement for the acquired group to high single digits or low double digits by FY27.

• Internal restructuring and integration costs indicate ongoing transformation and focus on operational efficiency.