SUDARSCHEMNSESudarshan Chemical Industries Limited· Dyes And PigmentsHighNeutral
Announced Thu, 12 Feb · 19:58 IST

Sudarshan Chemical Industries Limited has submitted to the Exchange, the financial results for the period ended December 31, 2025.

Revenue DeclineRevenue Growth 20pctPat Growth 25pctPat NegativeEbitda Margin CompressionExceptional ItemResults View source PDF

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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

Sudarshan Chemical Industries reported its Q3 FY26 results for the quarter and nine months ended December 31, 2025. On a standalone basis, revenue from operations dipped to ₹550.3 crore in Q3 (vs ₹574.8 crore in Q3 FY25) and ₹1,664.0 crore for 9M FY26 (vs ₹1,830.4 crore, a ~9% decline). Standalone profit after tax, however, rose sharply to ₹169.9 crore for 9M FY26 (vs ₹118.6 crore, ~43% growth), aided by exceptional items treatment of ₹26.5 crore related to new Labour Codes. On a consolidated basis, revenue surged to ₹6,997.3 crore for 9M FY26 (vs ₹1,996.1 crore), driven entirely by the Heubach Group acquisition completed in March 2025. However, consolidated bottom line swung to a loss of ₹41.7 crore for 9M FY26 and a Q3 loss of ₹116.0 crore, hurt by integration/restructuring costs of ₹69.9 crore (9M), exceptional charges of ₹45.4 crore, and sharply higher finance and depreciation costs. Consolidated Q3 EBITDA collapsed to ₹37.9 crore from ₹132.2 crore in the previous quarter. The Board also approved renewal of a corporate guarantee of up to €6 million for wholly owned subsidiary Sudarshan Europe B.V. The auditor (S R B C & CO LLP) issued an unmodified review report.

Likely market impact

Mixed signals for shareholders: standalone profitability looks healthy with strong PAT growth, but the consolidated picture reveals significant integration pain from the Heubach acquisition, with the company posting losses and steep EBITDA compression. The guarantee renewal continues to expose the parent to subsidiary-level debt, though the wholly-owned nature limits contagion risk. Near-term stock reaction may be cautious given the consolidated loss and margin pressure.