Sudarshan Chemical Industries Q2 FY27 results: net profit up 58.0% to ₹30.50 crore, revenue up 14.9%

How did Sudarshan Chemical Industries perform in Q2 FY27?

Sudarshan Chemical Industries reported consolidated revenue of ₹2,743 crore in Q2 FY27, up ₹355.20 crore or 14.9% from ₹2,387 crore in Q2 FY26. Revenue also rose ₹100.50 crore or 3.8% from ₹2,642 crore in Q1 FY27. Total income was ₹2,757.5 crore, compared with ₹2,416.2 crore a year earlier and ₹2,661.1 crore in the previous quarter.

Consolidated EBITDA was ₹267.10 crore in Q2 FY27, up ₹134.90 crore or 102.0% from ₹132.20 crore in Q2 FY26 and ₹8.30 crore or 3.2% from ₹258.80 crore in Q1 FY27. The EBITDA margin was 9.7%, up 4.2 percentage points from 5.5% but 0.1 percentage points lower than Q1 FY27.

Profit before tax was ₹63.60 crore, against ₹20.20 crore a year earlier and ₹144.20 crore in the previous quarter. Profit after tax was ₹30.50 crore versus ₹19.30 crore in Q2 FY26 and ₹103.40 crore in Q1 FY27; profit attributable to owners was ₹27.64 crore and basic EPS was ₹13.94. On the standalone basis, revenue was ₹777.2 crore and profit after tax was ₹61.0 crore.

What changed in Sudarshan Chemical Industries' costs and profit?

Total expenses increased ₹215 crore or 9.0% from Q2 FY26 to ₹2,611 crore. Cost of materials rose ₹230 crore or 18.9% to ₹1,449 crore, employee cost increased ₹20.60 crore or 5.0% to ₹436.30 crore, and other expenses rose ₹77.30 crore or 11.9% to ₹726 crore. Finance costs declined ₹1.90 crore or 4.4% to ₹41.70 crore, while depreciation fell ₹3.40 crore or 3.5% to ₹93.80 crore.

Other income declined ₹13.90 crore or 48.3% from Q2 FY26 to ₹14.90 crore, while tax expense rose ₹30.70 crore or 301.0% to ₹40.90 crore. Q2 FY27 included an exceptional charge of ₹82.90 crore, while the year-ago quarter had no exceptional item. Against Q1 FY27, total expenses rose ₹94.10 crore or 3.7% and other income fell ₹4.10 crore or 21.6%.

Management said RIECO faced supply-chain bottlenecks and two late-stage projects incurred cost overruns that were fully recognised in the quarter. Management also said reported EBITDA included a ₹22 Cr inventorised-overhead credit from stock build, while its business EBITDA was ₹112 Cr after removing the inventory-change impact.

How did the first half of FY27 go?

In H1 FY27, consolidated revenue was ₹5,384.7 crore, up ₹490.4 crore or 10.0% from ₹4,894.3 crore in H1 FY26. Total income rose ₹469.7 crore or 9.5% to ₹5,418.6 crore, while profit before tax increased ₹112.5 crore or 118.0% to ₹207.8 crore.

Profit after tax for H1 FY27 was ₹133.9 crore, up ₹59.6 crore or 80.2% from ₹74.3 crore in H1 FY26. EPS increased by ₹18.73 or 249.7% to ₹26.23. On the standalone basis, H1 FY27 revenue was ₹1,454.6 crore and profit after tax was ₹118.8 crore.

What do the balance sheet and cash flow show?

At 30 September 2026, consolidated total assets were ₹10,419.8 crore, up from ₹9,723.3 crore at 31 March 2026. Total equity rose to ₹4,065.8 crore from ₹3,854.0 crore, while borrowings fell to ₹1,976.4 crore from ₹2,119.0 crore. Cash and cash equivalents increased to ₹977.8 crore from ₹932.9 crore.

Inventories stood at ₹3,055.7 crore against ₹2,443.6 crore at the previous balance-sheet date. Trade receivables were ₹1,690.9 crore, compared with ₹1,679.0 crore, and trade payables were ₹2,025.9 crore against ₹1,534.0 crore. In H1 FY27, operating cash flow was ₹286.4 crore versus negative ₹141.9 crore in H1 FY26, while investing cash flow was negative ₹2.6 crore against positive ₹220.5 crore.

Financing cash flow was negative ₹188.0 crore in H1 FY27, compared with negative ₹410.8 crore in H1 FY26. Capital expenditure was ₹124.4 crore in H1 FY27 and ₹97.5 crore in H1 FY26. Management said proceeds from the completed VP4 sale would primarily prepay acquisition debt and move the group closer to net debt zero.

How has Sudarshan Chemical Industries done over the last 8 quarters?

Revenue has risen year on year in each of the last eight quarters. It reached its highest reported level in the latest eight-quarter series in Q4 FY26 at ₹2,789.9 crore, eased to ₹2,642.1 crore in Q1 FY27, and rose to ₹2,742.6 crore in Q2 FY27. The lowest revenue was ₹666.43 crore in Q3 FY25.

Profit after tax bottomed at a loss of ₹116.0 crore in Q3 FY26, recovered to ₹82.5 crore in Q4 FY26 and ₹103.4 crore in Q1 FY27, before falling to ₹30.5 crore in Q2 FY27. EBITDA margin followed a similar pattern, reaching its low of 1.8% in Q3 FY26, rising to 9.8% in Q1 FY27 and easing to 9.7% in the latest quarter. The highest margin in the series was 11.9% in Q3 FY25.

Which businesses drove the quarter?

Pigments generated revenue of ₹2,695.1 crore and EBIT of ₹270.1 crore in Q2 FY27, with an EBIT margin of 10.0%. The filing excerpt did not provide the year-ago revenue, EBIT or growth figures for the segment.

Others reported revenue of ₹47.6 crore and EBIT of negative ₹3.0 crore in Q2 FY27, with an EBIT margin of negative 6.3%. The filing excerpt did not provide the corresponding year-ago figures or growth rates for this segment.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half-year ended 30 September 2026, along with the limited review report. The Audit Committee reviewed and recommended the results before the board approved them.

The board appointed Amit Deshpande as Company Secretary and Compliance Officer, Nodal Officer and Key Managerial Personnel effective 6 November 2026, in addition to his existing role as General Counsel and senior management personnel. The same-day filing did not announce a dividend or fund raise, and the trading window was scheduled to open on 9 November 2026.

What did Sudarshan Chemical Industries' management say?

Management reaffirmed FY27 guidance for the Acquired Group at sales of ~ € 700 Mn and EBITDA of ~ € 35 Mn. It said major savings were expected in FY27 from operations excellence, including yield improvements, and procurement. The Alu dyes acquisition, with a deal value of CHF 7 mn, was expected to close in January 2027.

Management said end-market demand stayed muted in Q2 FY27, with US housing and European construction remaining weak and masterbatch demand volatile. It expected signs of demand uptake only towards Q4, while near-term raw-material costs remained high against moderate demand. Management also said the completed VP4 sale, at EUR 75.8 Mn, would primarily prepay acquisition debt.

Management said the first One SAP wave covering Legacy Sudarshan and Heubach India went live with minimal disruption, while subsequent go-lives and the remaining SAP and GCC integration work were progressing. It also said RIECO remained loss-making because of supply-chain bottlenecks and project overruns, with two late-stage projects incurring cost overruns fully recognised in the quarter.

Management identified geopolitical uncertainty, weak core-market GDP performance and the timing gap around the Alu dyes transition as risks. It noted that the contract manufacturing agreement ends by Dec'26, while the CHF 7 mn acquisition was expected to close in January 2027 and carve-out work remained ongoing.

How did Sudarshan Chemical Industries shares react?

The filing appeared during market hours. From the price when it appeared, the stock was down 0.6% after five minutes, up 0.7% after 15 minutes and down 1.0% after 30 minutes. The Dyes And Pigments industry median moved down 0.9% over the same period.

The earlier results-day reaction was mixed: the stock rose 0.6% on 12 August 2026, fell 3.7% on 25 May 2026 and fell 1.1% on 12 February 2026. Other reactions included a fall of 2.5% on 12 November 2025, a rise of 7.9% on 25 July 2025 and a fall of 3.7% on 14 February 2025.

How did other Dyes And Pigments companies do?

Seven other Dyes And Pigments companies had filed for the quarter, with a median revenue growth of 47.3%. One peer grew more slowly than Sudarshan Chemical Industries, while six grew faster. Profit increased for five of the seven peers on a comparable basis.