Sudarshan Chemical Industries (506655) Q4 25/26 earnings summary

Executive summary

• Q4 FY26 consolidated revenue rose 6.6% YoY to ₹2,790 crore and EBITDA rose 21.6% to ₹247 crore, with a 14.4% margin.

• Acquired-group Q4 business EBITDA reached €11 million, above the €9–10 million target, as customer buying returned after destocking.

• Integration priorities include restoring customer trust, capturing value, aligning culture and consolidating systems; benefits are expected over the next two financial years.

• Audited FY26 results received unmodified audit opinions; a ₹5-per-share final dividend was recommended, subject to shareholder approval.

Financial highlights

• FY26 consolidated revenue was ₹9,787.2 crore and net profit was ₹115.8 crore; consolidated EBITDA was ₹579 crore.

• Standalone FY26 revenue was ₹2,396.7 crore and net profit was ₹290.3 crore.

• Q4 reported EBITDA was ₹73 crore, including a one-time non-cash ₹37 crore PPA credit and ₹82 crore of inventorized overhead released as inventory fell; business EBITDA was ₹118 crore.

• Acquired-group Q4 business EBITDA was €11 million versus a €9–10 million target; inventory declined €29 million, exceeding the €20 million plan.

• Net debt fell from ₹934 crore in December 2025 to ₹755 crore in March 2026; net debt-to-equity was 0.3x.

Outlook and guidance

• Acquired-group FY27 EBITDA guidance is €35 million, on sales guidance of €700 million; the three-to-four-year EBITDA target is €90–100 million, driven by synergies, value capture and sales growth.

• Legacy business FY27 growth guidance is 8–10%; management aims to maintain healthy margins through cost pass-through.

• A further €15–20 million of inventory optimization is targeted in FY27; reported and business EBITDA are expected to converge as inventory normalizes.

• Integration and restructuring costs continue; management is monitoring Labour Code rules and related adjustments.