Sudarshan Chemical Industries (506655) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 consolidated revenue was ₹2,742.6 crore, up 14.9% YoY; Business EBITDA was ₹239 crore, up 149.5%, with an 8.7% margin.

• H1 revenue reached ₹5,384.7 crore, up 10.0% YoY; Business EBITDA rose 96.2% to ₹487 crore, with a 9.0% margin.

Financial highlights

• Q2 consolidated PAT was ₹30.5 crore versus ₹19.3 crore YoY; H1 PAT was ₹133.9 crore versus ₹74.3 crore.

• Q2 reported EBITDA was ₹261 crore; PBT before exceptional items and tax was ₹154.3 crore.

• Consolidated PBT was ₹71.4 crore in Q2 and ₹228.8 crore in H1, after ₹82.9 crore of exceptional expenses in each period.

• Q2 normalized consolidated EBITDA was ₹236 crore, excluding ₹3 crore of inventorized overheads.

• Standalone Q2 revenue was ₹777.2 crore and PAT ₹61.0 crore; H1 revenue was ₹1,454.6 crore and PAT ₹118.8 crore.

Outlook and guidance

• FY27 guidance for acquired operations reaffirmed at €700 million revenue and ~€35 million EBITDA; VP4 divestment is reflected in retained guidance.

• Demand uptake is expected toward Q4; stronger revenue recovery depends on external conditions improving.

• SAP integration and application consolidation are progressing; the first India wave is live, with further go-lives underway.

• EBITDA improvement levers include procurement and manufacturing savings, backward integration, AI, shifted-production commercialization and regained sales; management attributes roughly two-thirds of its aspiration to cost reduction.