Sudarshan Chemical Industries (506655) Q1 26/27 earnings summary

Executive summary

• Achieved strong profitability momentum in Q1 FY27, with significant improvements in EBITDA and net debt reduction compared to previous periods.

• Unaudited standalone and consolidated financial results for the quarter ended 30th June 2026 were approved, showing strong revenue and profit growth year-over-year.

• Integration of acquired group progressing, with unified culture, leadership hires, and SAP implementation underway.

• In-principle approval was granted for internal restructuring via acquisition of a 70.26% stake in a step-down subsidiary, Sudarshan Colorants India Limited, to be held directly.

• Maintained global leadership in pigments, serving over 4,000 customers in 100+ countries with a robust product portfolio.

Financial highlights

• Q1 FY27 consolidated revenue from operations was ₹2,642.1 crore, up from ₹2,506.9 crore in Q1 FY26, a 5.4% year-over-year increase.

• Business EBITDA for Q1 FY27 reached ₹247 crore, a 63% increase year-over-year; reported EBITDA was ₹266 crore, up 61.4%.

• Consolidated net profit for Q1 FY27 was ₹103.4 crore, up from ₹55.0 crore in Q1 FY26.

• Net debt reduced to ₹531 crore from a peak of ₹922 crore as of September 2025.

• Earnings per share for Q1 FY27 was ₹12.3, up from ₹6.0 in Q1 FY26.

Outlook and guidance

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

• Continued focus on integration, value capture, and working capital efficiency.

• Cautious approach to market volatility due to geopolitical and macroeconomic uncertainties.

• No explicit forward-looking guidance provided, but internal restructuring and integration costs indicate ongoing transformation and focus on operational efficiency.