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Fri, 26 Jun 2026
05:53:12 pm
Fri, 26 Jun 2026
05:53:12 pm
Rudransh Sangwan
Published at: May 12, 2026, 2:02 PM
Synopsis
Sudarshan Colorants India posted FY26 revenue of ₹780.63 crore with net profit of ₹44.53 crore. Q4 profitability improved sharply due to exceptional reversals, lower employee costs, and operational efficiency improvements.
Sudarshan Colorants India Limited announced its audited standalone financial results for FY2025-26, reporting stable profitability despite softer revenue performance and continued pressure across the specialty chemicals and pigments sector.
The company, formerly known as Heubach Colorants India Limited, reported net profit of ₹44.53 crore for FY26 while revenue from operations stood at ₹780.63 crore. The Board also announced key management appointments, internal auditor changes, and updates related to ownership restructuring following the acquisition of the global pigment business by Sudarshan Chemical Industries Limited.
For the financial year ended March 31, 2026, Sudarshan Colorants India reported revenue from operations of ₹780.63 crore compared to ₹825.06 crore in FY25.
Total income during the year stood at ₹807.47 crore.
| Metric | FY26 | FY25 |
|---|---|---|
| Revenue from Operations | ₹780.63 crore | ₹825.06 crore |
| Total Income | ₹807.47 crore | ₹843.83 crore |
| Net Profit | ₹44.53 crore | ₹51.45 crore |
| Profit Before Tax | ₹57.62 crore | ₹68.11 crore |
| EPS | ₹19.29 | ₹22.29 |
Although annual revenue and profit declined year-on-year, the company managed to maintain stable operational performance amid weaker industry demand and cost pressures.
The March quarter showed significant recovery compared to the previous quarter.
| Metric | Q4 FY26 | Q4 FY25 |
|---|---|---|
| Revenue from Operations | ₹211.10 crore | ₹220.28 crore |
| Total Income | ₹220.03 crore | ₹229.73 crore |
| Net Profit | ₹13.15 crore | ₹10.64 crore |
| Profit Before Tax | ₹16.19 crore | ₹12.73 crore |
| EPS | ₹5.69 | ₹4.61 |
The company returned to stronger profitability sequentially after posting a loss during Q3 FY26.
One of the major reasons behind the profit improvement during Q4 FY26 was the reversal of exceptional charges.
| Particulars | Amount |
|---|---|
| Exceptional Gain in Q4 FY26 | ₹8.31 crore |
| Exceptional Loss in Q3 FY26 | ₹12.80 crore |
| Net Exceptional Item FY26 | ₹(4.99) crore |
The reversal mainly came from revised actuarial valuations linked to India’s new Labour Codes.
The company had earlier recorded higher gratuity and employee-related provisions during Q3 FY26.
Despite lower revenue, Sudarshan Colorants managed expenses efficiently during FY26.
| Expense Item | FY26 | FY25 |
|---|---|---|
| Cost of Materials Consumed | ₹354.83 crore | ₹376.05 crore |
| Employee Benefit Expenses | ₹71.10 crore | ₹84.78 crore |
| Other Expenses | ₹177.44 crore | ₹181.23 crore |
| Total Expenses | ₹744.86 crore | ₹766.90 crore |
Lower employee expenses and controlled operating costs helped support profitability.
The company maintained a healthy balance sheet position during FY26.
| Parameter | FY26 | FY25 |
|---|---|---|
| Total Assets | ₹804.83 crore | ₹758.11 crore |
| Total Equity | ₹570.08 crore | ₹523.34 crore |
| Cash & Cash Equivalents | ₹133.36 crore | ₹177.08 crore |
Inventories and receivables increased during the year, reflecting working capital movement and operational activity.
Net cash generated from operating activities declined sharply during FY26.
| Metric | FY26 | FY25 |
|---|---|---|
| Operating Cash Flow | ₹34.24 crore | ₹110.59 crore |
| Investing Cash Outflow | ₹73.33 crore | — |
The decline was mainly driven by:
The company also increased investments in property, plant, and equipment during the year.
Sudarshan Colorants also provided an update regarding the warehouse fire incident at its Kolad plant.
The company stated:
The company confirmed that adequate insurance coverage exists for the incident.
A major corporate development during the year involved the acquisition of Heubach Group’s global pigment business operations.
Sudarshan Europe B.V. completed the acquisition on March 3, 2025.
Following the open offer process:
The transaction significantly strengthened promoter control over the company.
The Board appointed Mr. Nilkanth Natu as Interim Chief Financial Officer effective May 11, 2026.
Mr. Natu:
Is a Chartered Accountant
Has completed CFA Level III (USA)
Has over 26 years of finance experience
Previously worked with:
The appointment follows the resignation of former CFO Mr. Jugal Sahu.
The Board also approved the appointment of PricewaterhouseCoopers Services LLP as Internal Auditor for FY2026-27.
The appointment reflects strengthening governance and internal control processes.
India’s specialty chemicals and pigments industry remains affected by:
However, long-term structural demand remains supported by growth across:
Investors are closely monitoring the company for:
The pigments business remains highly linked to industrial and manufacturing activity globally.
Sudarshan Colorants India delivered stable FY26 profitability despite softer revenue and continued pressure across the specialty chemicals industry.
Improved Q4 profitability, controlled operating costs, exceptional reversals, and stronger promoter ownership remain some of the key positives from the results.
Going forward, recovery in global industrial demand, export markets, and operational efficiency improvements will remain important growth drivers for the company.
The company reported FY26 revenue from operations of ₹780.63 crore.
Net profit stood at ₹44.53 crore during FY26.
Profit improved due to exceptional gain reversals, lower employee expenses, and better operational efficiency.
The company operates in the pigments and specialty colorants business.
Operating cash flow declined due to higher investments, working capital movement, and increased capital expenditure.
A warehouse fire occurred at the Kolad facility in January 2025, and insurance claim discussions are ongoing.
Mr. Nilkanth Natu was appointed Interim Chief Financial Officer effective May 11, 2026.
Promoter and promoter group shareholding increased to 70.25%.
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