Sudarshan Chemical Industries Limited has released the transcript of their conference call with Analysts and Institutional Investors, which took place on May 27, 2026. This call followed the announcement of the Audited Financial Results for the quarter and financial year ended March 31, 2026. The transcript is available on the company's website, www.sudarshan.com. During the call, management discussed the integration of the Heubach business, acquired in March 2025, which involved combining entities from Clariant and Heubach. Challenges faced included integrating three companies, profitability pressures, high working capital, and broken supply chain processes. The company focused on rebuilding customer trust, achieving value capture initiatives, and aligning the organization with a 'One Sudarshan' culture. A significant undertaking is the 'One SAP Drive project Integra' to integrate multiple systems by year-end. For Q4 FY26, the acquired group delivered a Business EBITDA of €11 million against a projection of €9-10 million and reduced inventory by €29 million. The net debt reduced from ₹934 crore in December 2025 to ₹755 crore in March 2026. The company is navigating challenges from the Middle East crisis, including increased raw material and energy costs, and is focused on passing these costs to customers while maintaining volumes. The company expects to achieve €90 million to €100 million in EBITDA over the next 3 to 4 years, with a projected EBITDA of €35 million for the next financial year. Discussions also covered the RIECO business performance, which saw revenue growth of 17.5% to ₹268 crore in FY26, with EBITDA turning positive to ₹10 crore. The company is working on further transformation for RIECO. Management also addressed inventory levels, noting a reduction of €29 million in Q4 and targeting a further €15-20 million reduction. Customer trust has been rebuilt, and customers have started purchasing again. The company anticipates that reported and business EBITDA will merge going forward as inventory levels normalize.
