Sudarshan Chemical Industries (506655) Q2 24/25 earnings summary

Executive summary

• Record pigment sales in Q2 and H1 FY2025, with higher gross and EBITDA margins; consolidated income from operations reached ₹696 crore in Q2 and ₹1,330 crore in H1.

• Growth reflected international expansion and new products supported by completed capacity investments; management said the CapEx program is beginning to deliver.

Financial highlights

• Q2 consolidated income from operations was ₹696 crore vs ₹601 crore; EBITDA was ₹94 crore vs ₹66 crore, with margin at 13.6% vs 10.9%.

• H1 consolidated income from operations was ₹1,330 crore vs ₹1,209 crore; EBITDA was ₹175 crore vs ₹135 crore, with margin at 13.2% vs 11.2%.

• Pigment Q2 revenue was ₹660 crore, up 26% YoY; EBITDA was ₹105 crore vs ₹67 crore.

• Q2 consolidated net profit was ₹2,990.4 lakhs vs ₹1,785.9 lakhs; standalone net profit was ₹6,124.7 lakhs vs ₹1,413.7 lakhs.

Outlook and guidance

• Management expects to sustain H1’s average growth through the rest of FY2025 and sees no major near-term challenges.

• New capacity for coatings and plastics is expected to support mid-teens growth; initial trials are complete and some business has been commercialized.

• ₹750 crore CapEx is expected to support potential revenue of ₹1,500 crore over 3–4 years; roughly 18 months of the utilization ramp had elapsed.

• No new incremental CapEx is planned for existing operations; completed investments and new products are expected to drive improvement.

• Heubach acquisition integration was expected after closing, with closing targeted for Q1 CY2025.