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

Executive summary

• Achieved strong revenue and EBITDA growth in Q4 FY26, with consolidated revenue up 6.6% year-over-year and EBITDA up 21.6% year-over-year.

• Audited standalone and consolidated financial results for the quarter and year ended 31st March 2026 were approved, with unmodified audit opinions from statutory auditors.

• Final dividend of ₹5 per share (250%) recommended for FY 2025-26, subject to shareholder approval.

• Major acquisition of Heubach Group's global pigment business completed, significantly impacting consolidated results.

• Integration of acquired group progressing well, with harmonized systems and culture initiatives underway.

Financial highlights

• Q4 FY26 consolidated revenue: ₹2,790 Cr, up 6.6% YoY and ~36% sequentially.

• Q4 FY26 consolidated EBITDA: ₹247 Cr, up 21.6% YoY; EBITDA margin at 14.4%.

• FY26 consolidated revenue: ₹9,787.2 crore, up 1.7% YoY; EBITDA: ₹579 Cr, up 5.9% YoY.

• Consolidated net profit for FY 2025-26 was ₹115.8 crore, up from ₹39.0 crore year-over-year.

• Net debt reduced from ₹934 Cr in Dec'25 to ₹755 Cr in Mar'26.

Outlook and guidance

• Expecting continued momentum with profit and working capital improvements driven by value capture initiatives.

• FY27 projection for acquired group: sales of €700 Mn and EBITDA of ~€35 Mn.

• Targeting EBITDA of €90-100 Mn over 3-4 years for the acquired group, leveraging synergies and sales growth.

• Integration and restructuring costs related to the Heubach acquisition are ongoing.

• Cautious approach due to geopolitical uncertainty, logistics challenges, and rising raw material costs.