Sudarshan Chemical Industries (506655) Q2 25/26 earnings summary

Executive summary

• Consolidated revenue grew 2.2% year-over-year and 13% sequentially in Q2 FY26, despite ongoing low demand and high customer inventories.

• Unaudited standalone and consolidated financial results for the quarter and half year ended 30th September 2025 were approved, with auditor review confirming compliance and no material misstatements.

• Integration of acquired group progressing, with cost synergies and operational stabilization underway.

• Appointment of Mr. Sanjay K. Asher as Additional Director (Non-Executive, Non-Independent), effective 12th November 2025, subject to shareholder approval.

• Approved investment up to €14 million in Sudarshan Europe B.V., a wholly owned subsidiary, to support business operations.

Financial highlights

• Q2 FY26 consolidated sales: ₹2,387 Cr; adjusted EBITDA: ₹116 Cr; EBITDA margin: 4.9%.

• H1 FY26 consolidated sales: ₹4,894 Cr; adjusted EBITDA: ₹281 Cr; EBITDA margin: 5.8%.

• Standalone revenue from operations for H1 FY26 was ₹1,255.6 crore, up from ₹1,113.7 crore year-over-year; consolidated revenue for H1 FY26 was ₹2,506.9 crore, up from ₹1,329.7 crore year-over-year.

• Standalone net profit for H1 FY26 was ₹102.3 crore, up from ₹61.2 crore year-over-year; consolidated net profit for H1 FY26 was ₹59.4 crore, compared to ₹60.3 crore year-over-year.

• Exceptional items in consolidated results include transaction costs related to the Heubach Group acquisition.

Outlook and guidance

• Q3 expected to remain slow due to destocking, but Q4 anticipated to rebound as economic conditions improve.

• Integration and restructuring costs related to the Heubach acquisition impacted H1 FY26 results; management expects continued focus on global pigment business expansion.

• Mid-term performance expected to be healthy, driven by customer trust, cost reductions, and working capital improvements.