Sudarshan Chemical Industries Limited Earnings Summary — Q1 FY2027
Sudarshan Chemicals Reports Q1 Profit Growth Amid Integration Costs and Group Restructuring
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 5.3% sequentially in Q1 FY2027.
- Revenue of ₹2,642 Cr is 5.4% higher year-on-year.
- Revenue has compounded at 73.6% annualised over the last 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹97 Cr is 106.1% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 34.4% annualised across the period.
- Operating margin stands at 9.8% in Q1 FY2027.
- Operating margin expanded by 213 bps year-on-year.
- Over the last two years operating margin has contracted by 292 bps.
- PBT margin is 6.0%.
- Expense growth of 3.0% remained below revenue growth of 5.4%.
- Operating profit of ₹259 Cr is 34.5% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 66/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 2,642 | 2,790 | 2,103 | 2,387 | 2,507 | 1,349 | 666 | 696 | 634 | 764 |
| Expenses | Improving | 2,383 | 2,563 | 2,065 | 2,255 | 2,315 | 1,222 | 587 | 602 | 553 | 645 |
| Operating Profit | Volatile | 259 | 227 | 38 | 132 | 192 | 127 | 79 | 94 | 81 | 119 |
| Operating Margin | Volatile | 9.8% | 8.2% | 1.8% | 5.5% | 7.7% | 9.4% | 11.8% | 13.6% | 12.7% | 15.6% |
| Other Income | Volatile | 32 | 32 | -24 | 38 | 33 | -38 | -26 | -6 | 4 | 3 |
| Interest | Improving | 41 | 41 | 36 | 44 | 44 | 21 | 11 | 9 | 7 | 8 |
| Depreciation | Improving | 93 | 50 | 101 | 97 | 99 | 57 | 37 | 37 | 36 | 36 |
| Profit Before Tax | Volatile | 157 | 168 | -123 | 30 | 82 | 11 | 5 | 43 | 41 | 78 |
| Tax | Volatile | 54 | 85 | -7 | 10 | 27 | 10 | 4 | 13 | 12 | 20 |
| Net Profit | Volatile | 97 | 79 | -115 | 12 | 47 | -4 | 1 | 30 | 29 | 58 |
| Net Margin | Volatile | 3.7% | 2.8% | -5.5% | 0.5% | 1.9% | -0.3% | 0.1% | 4.3% | 4.6% | 7.6% |
Key Takeaways
- Consolidated Net Profit for Q1 FY27 surged 88% YoY to ₹103.4 crore, significantly outperforming revenue growth due to improved segment EBITDA.
- The Pigments segment remains the primary driver, contributing ₹2,604.4 crore to revenue with an EBITDA margin of 10.3%.
- Company incurred ₹36.1 crore in one-time integration and restructuring costs during the quarter related to the acquisition of Heubach Group's pigment business.
- The Board approved an internal restructuring to acquire a 70.26% direct stake in Sudarshan Colorants India Limited (formerly Heubach Colorants) from its own subsidiaries.
- Promoter Rajesh Rathi increased his personal stake by exercising 980,000 warrants, providing a ₹75 crore cash infusion to the company.
- Operating EBITDA improved sequentially to ₹258.8 crore despite a slight dip in quarterly revenue compared to Q4 FY26.
Management Guidance
Management is focused on the post-acquisition integration of the Heubach Group assets, emphasizing operational synergy and internal shareholding restructuring to streamline control.
Sentiment Shift
Improving
Profitability is recovering following the massive scale-up from acquisitions, with margins expanding despite one-time integration headwinds.
Outlook
The company is transitioning through a massive scale-up phase. While leverage remains higher than historical levels, the improvement in net profit and ongoing integration of global assets suggest a focus on returning to historical profitability benchmarks.
From the Annual Report (Key Quotes)
“Employee benefits expense and other expenses includes integration costs / restructuring costs of ₹4.1 crores and ₹32.0 crores respectively.”
“Accorded in-principle approval for acquisition of 70.26% of total shareholding of the Target Company... as a measure towards having internal restructuring.”
“The Group will assess the consequential impact of the employee restructuring programme in the consolidated financial results of the subsequent period.”
Official Quarterly Documents
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This summary is AI-generated from Sudarshan Chemical Industries Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.