Sudarshan Chemical Industries Limited has released its Investor Presentation for the unaudited financial results (standalone and consolidated) for the quarter and half year ended September 30, 2025. An earnings call with analysts and investors was scheduled for Thursday, November 13, 2025, at 11:00 a.m. (IST). Key highlights from the presentation include: * Market Reflections: The company observed low demand across most pigment end-use industries, particularly for coatings and plastics, attributed to high interest rates and overall low economic growth. Global customers are experiencing degrowth, and high stock levels from the insolvency phase are depleting slower than expected. * Q2 FY26 Consolidated Performance: Sales stood at ₹712 crore, a 2.2% increase year-on-year (YoY) and 13% quarter-on-quarter (QoQ). Adjusted EBITDA was ₹91 crore, down 3.5% YoY, with an adjusted EBITDA margin of 12.8%. Profit Before Tax (PBT) increased by 46.7% YoY to ₹63 crore. * H1 FY26 Consolidated Performance: Sales reached ₹1,340 crore, up 0.8% YoY. Adjusted EBITDA grew by 1.8% YoY to ₹178 crore, with an adjusted EBITDA margin of 13.3%. PBT saw a significant increase of 66.0% YoY to ₹139 crore. * Pigment Segment Performance (Q2 FY26): Pigment sales were ₹651 crore, a 1.3% decline YoY. Adjusted EBITDA for the pigment segment was ₹85 crore, down 19.4% YoY, with a margin of 13.0%. Legacy Sudarshan showed marginal YoY sales decline but 13% QoQ growth. The acquired group experienced a drop in sales due to soft demand, destocking, and high inventories. * Acquired Group Projections: The acquired group reported an EBITDA of €10.3 million (approx. ₹92.7 crore) in H1 FY26. The revised FY26 EBITDA guidance for the acquired group is €25-30 million (approx. ₹225-270 crore), down from the earlier guidance of €35 million (approx. ₹315 crore). The company anticipates a positive outlook for growth in coming quarters, with Q4 expected to be stronger as the economy improves. * Integration Update: The integration process is progressing steadily, focusing on business continuity, unified go-to-market strategies, value capture across functions, and IT/data integration. The company aims to fully turnaround business performance through value capture plan execution and progress integrated systems and processes. * Outlook: Sudarshan Chemical expects healthy mid-term performance driven by strong customer trust, an accelerated value capture funnel for cost reductions, significant potential to free up working capital, and further solidification of One Sudarshan through system and data integration.
