Sudarshan Chemical Industries (506655) Q4 24/25 earnings summary

Executive summary

• Completed integration and acquisition of Heubach, creating a global pigment leader with 19 manufacturing sites, over 1,600 products, and significantly expanding the group’s global footprint.

• Audited standalone and consolidated financial results for FY25 were approved, with an unmodified audit opinion on standalone results and a qualified opinion on consolidated results due to an unresolved asset transfer at a subsidiary.

• Consolidated annual turnover exceeds €1 billion, with a robust global customer base in over 100 countries.

• Integration focused on synergy realization, customer centricity, and operational efficiency.

• A final dividend of ₹4.50 per share (225% of face value) was recommended for FY25, subject to shareholder approval.

Financial highlights

• FY25 consolidated sales reached ₹3,34,557.5 lakhs, up 31.8% year-over-year; Q4 FY25 sales at ₹1,349 Cr, up 76.6% year-over-year.

• Adjusted EBITDA for FY25 was ₹402 Cr, up 27.2% year-over-year; Q4 FY25 adjusted EBITDA at ₹148 Cr, up 24.4% year-over-year.

• Standalone net profit for FY25 was ₹14,097.4 lakhs, down from ₹33,512.4 lakhs in FY24 (FY24 included a one-time gain from land sale); consolidated net profit was ₹9,456.2 lakhs, down from ₹35,744.7 lakhs.

• Gross margin improved to 47.0% for FY25, up 2.8pp year-over-year.

• Exceptional items for acquisition-related expenses totaled ₹103.6 Cr for FY25; FY24 included a significant gain from land sale.

Outlook and guidance

• Positive momentum expected from winning back business, especially in Europe and Americas.

• Cost synergies and IT integration (ONE SAP) to drive further margin expansion.

• Acquired group EBITDA projected to rise from €35 mn in 2026 to €90–100 mn by 2028/29.

• Proceeds from recent equity issuances are earmarked for funding the acquisition, subsidiary investments, and general corporate purposes.

• Key priorities: business recovery, cost/cash initiatives, and IT integration.