Sudarshan Chemical Industries Limited (SUDARSCHEM)
₹1,138.30 -0.55% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Sudarshan Chemical's revenue was ₹2,642 Cr (+5.4% year on year, -5.3% on the previous quarter), and net profit ₹103 Cr (+88.0% year on year); the operating margin was 9.8%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹2,642 | +5.4% | -5.3% |
| Operating profit | ₹259 | +34.8% | +14.0% |
| Net profit | ₹103 | +88.0% | +26.1% |
| EPS (₹) | 12.30 | +104.7% | +22.9% |
| Operating margin | 9.8% | — | — |
SUDARSCHEM delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 56.77% of the SUDARSCHEM shares traded on NSE were taken to delivery, against the stock's own 20-session average of 49.09%. That is close to its usual level. Volume was 0.3 times its average, well below normal.
Delivery in the last 5 sessions: 51.8% · 41.3% · 57.2% · 50.2% · 56.8%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Sudarshan Chemical Industries reported the conclusion of an inspection/search proceeding conducted under Section 67 of the Maharashtra Goods and Services Tax Act, 2017. The search, initiated on October 1, 2026, across select offices and manufacturing units in Maharashtra, concluded on October 6, 2026, at 11:30 p.m. IST. The company stated it is submitting the required documentation and that there is currently no material impact on its operations or financials. Investors should monitor whether the inspection leads to any formal demand notice or penalty.
- Inspection conducted under Section 67 of Maharashtra Goods and Services Tax Act, 2017
- Proceeding commenced on October 1, 2026, and concluded on October 6, 2026, at 11:30 p.m. IST
- Actions carried out by Deputy Commissioner of State Tax, Maharashtra State, Mumbai
- No material financial or operational impact reported at present
Sudarshan Chemical Industries Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by Registrar and Share Transfer Agent MUFG Intime India Private Limited, covers the quarter from 1st July, 2026 to 30th September, 2026. It confirms that securities received for dematerialisation were verified, processed, cancelled, and listed within prescribed regulatory timelines. This is a standard quarterly administrative filing with zero impact on the company's financial or operational performance.
- Compliance certificate submitted under Regulation 74(5) of SEBI Regulations, 2018
- Pertains to the quarter ended 30th September, 2026 (1st July, 2026 to 30th September, 2026)
- Issued by RTA MUFG Intime India Private Limited (SEBI Reg No: INR000004058)
- Confirms mutilation, cancellation, and substitution of depositories within prescribed timelines
Sudarshan Chemical Industries reported that the Deputy Commissioner of State Tax, Maharashtra State, Mumbai initiated inspection and search proceedings on October 1, 2026. The search was conducted under Section 67 of the Maharashtra Goods and Services Tax Act, 2017, across select offices and manufacturing facilities in Maharashtra. The company stated that no specific violations or allegations have been communicated yet. As of the filing date, management reports no material impact on its operations or financial performance.
- Inspection/search initiated on October 1, 2026 under Section 67 of the Maharashtra GST Act, 2017
- Action carried out by the Deputy Commissioner of State Tax, Maharashtra State, Mumbai
- Proceedings cover select offices and manufacturing units located in Maharashtra
- No contraventions or monetary demands communicated by the authorities as of October 1, 2026
Sudarshan Chemical Industries Limited has acquired a 15.89% stake (36,68,036 equity shares) in step-down subsidiary Sudarshan Colorants India Limited from its wholly owned subsidiary Sudarshan Europe B.V. for ₹150.76 crore. This forms part of an overarching internal restructuring plan announced in August 2026 to directly consolidate 70.26% of Sudarshan Colorants (formerly Heubach Colorants India). The transaction consideration represents ~1.5% of Sudarshan Chemical's TTM revenue of ₹9,922 crore and ~5.9% of its net worth. Being an intra-group share transfer, it streamlines ownership without altering overall consolidated economic interest.
- Completed acquisition of 36,68,036 equity shares of face value ₹10.00 each
- Acquired stake represents 15.89% of the total share capital of Sudarshan Colorants India Limited
- Aggregate cash consideration paid is ₹150,75,62,796 (~₹150.76 crore)
- Part of a broader proposal to acquire up to 70.26% shareholding from overseas subsidiaries
Sudarshan Chemical Industries has executed a share purchase agreement dated September 28, 2026, to acquire a 15.89% stake (36,68,036 shares) in Sudarshan Colorants India Limited (formerly Heubach Colorants India Limited) from its wholly owned subsidiary, Sudarshan Europe B.V. The transaction consideration is ₹150.76 crore, with completion scheduled on or after September 29, 2026. This transaction is part of a broader proposal disclosed on August 12, 2026, to acquire a 70.26% total stake in the target company from European subsidiaries.
- Executed Share Purchase Agreement to acquire 36,68,036 equity shares (15.89% stake) of Sudarshan Colorants India Limited
- Total transaction consideration is ₹150,75,62,796 (approx. ₹150.76 crore)
- Acquisition being made from wholly owned subsidiary Sudarshan Europe B.V.
- Proposed to be consummated on or after 29th September 2026
- Part of an ongoing plan to consolidate a 70.26% stake from European step-down subsidiaries
Sudarshan Chemical Industries has appointed Mr. Amit Deshpande as General Counsel and Senior Management Personnel, effective September 21, 2026. He will report directly to the Chairman and Managing Director. Mr. Deshpande brings over 24 years of corporate legal, M&A, and regulatory experience, having previously spent nearly 15 years as General Counsel & CS at Sterlite Technologies Limited. This addition strengthens governance and legal oversight as the company integrates its global acquisition of Heubach Group.
- Appointment of Mr. Amit Deshpande as General Counsel effective September 21, 2026
- Over 24 years of experience in corporate law, M&A, FEMA, and SEBI regulations
- Previously served nearly 15 years at Sterlite Technologies as General Counsel & CS
- Reports directly to the Chairman and Managing Director
Sudarshan Chemical Industries Limited has announced that credit rating agency CRISIL has reaffirmed its rating of 'CRISIL A1+' on the company's ₹50 Crore Commercial Paper program. The rating reaffirmation reflects continued short-term liquidity strength and strong creditworthiness for short-term borrowings. Against the company's total debt of ₹388 Crore and TTM revenue of ₹9,922 Crore, the ₹50 Crore program represents a modest liquidity facility (under 13% of debt).
- CRISIL reaffirmed the short-term rating as 'CRISIL A1+'
- Applicable instrument is a ₹50 Crore Commercial Paper program
- Intimation submitted in compliance with Regulation 30 of SEBI LODR Regulations on September 11, 2026
Crisil ESG Ratings & Analytics has voluntarily assigned Sudarshan Chemical Industries Limited an ESG rating of 'Crisil ESG 53' and a Core ESG rating of 'Crisil Core ESG 55'. The ratings are based on publicly disclosed data for FY 2025-26. The company noted that it did not engage CRISIL for this assessment, which was determined independently from public disclosures.
- Crisil ESG rating voluntarily assigned at 'Crisil ESG 53'
- Crisil Core ESG rating assigned at 'Crisil Core ESG 55'
- Evaluation based on FY 2025-26 publicly available disclosures
- Company did not engage CRISIL; assessment was independently conducted on 10th September, 2026
Sudarshan Chemical Industries has entered into a definitive Share Purchase and Transfer Agreement to divest 100% stake in its step-down subsidiary, VP4 Frankfurt GmbH, for EUR 76.5 million (~Rs 700+ crore). The VP4 facility generated FY26 revenue of EUR 15.7 million and EBITDA of EUR 4.1 million (Q1 FY27 revenue EUR 4.1 million, EBITDA EUR 1.3 million). The buyer is Celanese US Holdings LLC, with operations transitioning to Nutrinova (a Celanese-Mitsui JV). Sudarshan consumes only ~5% of VP4 output captively and has secured a long-term supply contract with Nutrinova for Diketene.
- Deal value of EUR 76.5 Mn for 100% stake in VP4 Frankfurt GmbH, with closing expected in ~2-3 months
- Proceeds to be utilized primarily for prepayment of acquisition loans, positioning the company to be zero net debt/cash positive
- VP4 Frankfurt reported FY26 revenue of EUR 15.7 Mn and EBITDA of EUR 4.1 Mn (Q1 FY27 EBITDA of EUR 1.3 Mn)
- Only 5% of facility output was used internally; Sudarshan secured a long-term supply agreement with Nutrinova post-sale
Sudarshan Chemical Industries Limited has announced the resignation of Mr. Mandar Velankar from his roles as General Counsel, Company Secretary, Compliance Officer, and Key Managerial Personnel (KMP) effective September 1, 2026. The resignation letter was submitted on June 3, 2026, and Mr. Velankar served his notice period per company policy. The company confirmed it is in the process of appointing a successor. As of his exit date, Mr. Velankar holds 6,581 equity shares of the company, which includes 3,579 ESOP shares allotted on August 28, 2026.
- Cessation effective close of business hours on September 1, 2026, after serving notice period.
- Resignation originally submitted on June 3, 2026.
- Outgoing officer holds 6,581 fully paid-up equity shares (including 3,579 ESOP shares allotted August 28, 2026).
- Company is currently in the process of identifying and appointing a successor.
Sudarshan Chemical Industries Limited announced that Mr. Mandar Velankar has resigned from the role of General Counsel, Company Secretary, Compliance Officer, and Nodal Officer effective close of business hours on September 1, 2026, following the completion of his notice period after tendering his resignation on June 3, 2026. Consequently, he ceases to be a Key Managerial Personnel (KMP) and Senior Management Personnel. The company stated that it is in the process of appointing a successor. As disclosed, Mr. Velankar holds 6,581 equity shares of the company, which includes 3,579 ESOP shares allotted on August 28, 2026.
- Resignation of Mr. Mandar Velankar as General Counsel, CS, and Compliance Officer effective September 1, 2026
- Resignation letter was originally tendered on June 3, 2026, and served out as per notice period policy
- Outgoing CS holds 6,581 equity shares, including 3,579 shares recently allotted under ESOP on August 28, 2026
- The company is currently in the process of appointing a new Company Secretary and Compliance Officer
Sudarshan Chemical Industries has announced the resignation of Mr. Mandar Velankar from the roles of General Counsel, Company Secretary, Compliance Officer, and Key Managerial Personnel (KMP), effective close of business hours on September 1, 2026. The resignation comes after serving his notice period following his resignation letter dated June 3, 2026. Mr. Velankar holds 6,581 equity shares of the company, including 3,579 shares recently allotted under an ESOP plan on August 28, 2026. The company stated it is in the process of appointing a successor.
- Resignation of Mandar Velankar as General Counsel, Company Secretary, and Compliance Officer effective September 1, 2026
- Resignation tender date was June 3, 2026, followed by completion of regular notice period
- Outgoing official holds 6,581 fully paid-up equity shares in the company
- Shareholding includes 3,579 equity shares allotted under ESOP on August 28, 2026 (under process of listing)
Sudarshan Chemical Industries has entered into a definitive agreement to sell 100% stake in step-down subsidiary VP4 Frankfurt GmbH to Celanese US Holdings LLC for a deal value of EUR 76.5 million. VP4 Frankfurt, which produces Diketene and CKP, generated EUR 15.7 million in revenue and EUR 4.1 million in EBITDA in FY26. Only 5% of the plant's output was used captively by Sudarshan, with 90-95% sold to Nutrinova. Management plans to use the proceeds primarily to prepay acquisition debt to become net debt free, while securing a long-term Diketene supply agreement with Nutrinova.
- Divestment of 100% stake in VP4 Frankfurt GmbH for EUR 76.5 million
- VP4 delivered EUR 15.7 million revenue and EUR 4.1 million EBITDA in FY26 (EUR 4.1M revenue, EUR 1.3M EBITDA in Q1FY27)
- Non-core asset: Only 5% was used for captive consumption, while 90-95% was sold to Nutrinova
- Proceeds earmarked for acquisition loan prepayment to achieve zero net debt status
- Transaction expected to close in approximately 2-3 months with long-term raw material supply secured
Sudarshan Chemical Industries has announced the divestment of its step-down subsidiary, VP4 Frankfurt GmbH, to US-based Celanese Corporation. VP4 Frankfurt, which came into Sudarshan's fold via the Heubach Group acquisition, manufactures intermediates like Diketene primarily as a tolling operator for Nutrinova (a Celanese affiliate). Financial consideration and deal valuation were not disclosed in the press release. Following the transaction, Nutrinova will continue to supply Sudarshan with the intermediate materials required for its captive consumption.
- Divestment of step-down subsidiary VP4 Frankfurt GmbH to Celanese Corporation
- Asset was originally acquired as part of the Heubach Group acquisition
- Primary output is Diketene used for functional food ingredients by Nutrinova
- Transaction consideration and financial deal size were not disclosed
- Nutrinova agreed to continue supplying necessary intermediate materials to Sudarshan
Sudarshan Chemical's step-down subsidiary, Sudarshan Germany Horizons GmbH, has executed a definitive Share Purchase and Transfer Agreement to sell 100% of VP4 Frankfurt GmbH to Celanese US Holdings LLC for EUR 76.5 million. VP4 Frankfurt is a tolling operator manufacturing intermediates, contributing EUR 15.72 million (1.64% of FY26 consolidated revenue) and EUR 5.67 million to net worth. The divestment of this non-core asset yields substantial cash proceeds compared to its book value, sharpening group focus on core pigments and strengthening liquidity.
- 100% stake in step-down subsidiary VP4 Frankfurt GmbH sold for a total consideration of EUR 76,500,000
- Divested entity contributed EUR 15,722,521 in revenue (1.64% of consolidated revenue) as of March 31, 2026
- Net worth contribution of VP4 Frankfurt was EUR 5,670,674 as of March 31, 2026
- Acquiring party is Celanese US Holdings LLC, part of global chemical giant Celanese Corporation (non-related party)
- Agreement signed on August 31, 2026; closing subject to customary conditions precedent
Financial Performance
Revenue Growth by Segment
Pigment segment revenue grew 7% YoY to INR 2,223 Cr in FY24 and accelerated to 17% YoY growth in 9M FY25. The Engineering division (RIECO) grew 42% YoY to INR 316 Cr in FY24 but faced a sharp 25.5% decline to INR 146 Cr in 9M FY25 due to macroeconomic headwinds impacting capital expenditure cycles.
Geographic Revenue Split
Domestic operations grew 10% YoY in FY24, while overseas operations recorded a modest 4% increase due to European challenges. However, the overseas revenue mix improved to 53% of total revenue in H1 FY25 compared to 49% in H1 FY24, driven by strong performance in North America, Northern Latin America, and the Middle East.
Profitability Margins
Operating margins improved by 290 bps to 12.9% in FY24. Gross margins reached 52.8% in 9M FY25, up from 48.5% in 9M FY24, driven by a favorable product mix favoring specialty pigments and stable raw material costs. Net operating profitability increased 42% YoY to INR 329 Cr in FY24.
EBITDA Margin
EBITDA margin stood at 14% for H1 FY26 with an absolute EBITDA of INR 172 Cr. Core profitability is expected to temporarily contract to mid-single digits post-consolidation of the Heubach Group due to its current weak profitability and initial turnaround expenses.
Capital Expenditure
The company committed INR 1,180 Cr (EUR 127.5 million) for the debt-free acquisition of Heubach Group's global pigment operations, plus an additional infusion of INR 925 Cr (EUR 100 million) for working capital and restructuring, totaling a planned spend of over INR 2,105 Cr.
Credit Rating & Borrowing
CRISIL A1+/Watch Developing. Interest coverage ratio improved to 11.53 times as of September 30, 2024, from 8.60 times in FY24. However, interest cover is expected to moderate to approximately 3 times over the medium term due to increased debt for the Heubach acquisition.
Operational Drivers
Raw Materials
Pigment intermediates and commodity chemicals (specific names not listed, but identified as 'commodity prices') represent a significant portion of the 47.2% raw material cost base. Stable pricing in these materials was a primary driver for the 290 bps margin expansion in FY24.
Import Sources
Not specifically disclosed, though the company operates in 11 countries including Germany, USA, China, Mexico, and Japan, suggesting a global sourcing network.
Capacity Expansion
Current capacity includes Sudarshan's legacy plants plus Heubach's 17 manufacturing facilities across 11 countries. Planned expansion focuses on volume ramp-up from recently concluded growth capex to capture industry consolidation tailwinds.
Raw Material Costs
Raw material costs were approximately 47.2% of revenue in 9M FY25 (inverse of 52.8% gross margin). Procurement strategies focus on 'Cleansheet based negotiations' and 'Recipe harmonization' to reduce input costs across the unified entity.
Manufacturing Efficiency
Capacity utilization was impacted in Q2 FY26 by 'underutilised capacities' as the company intentionally lowered production to reduce inventory levels by INR 100 Cr in the standalone business.
Strategic Growth
Expected Growth Rate
12-15%
Growth Strategy
Growth will be achieved through the acquisition of Heubach Group (making Sudarshan the 2nd largest global player), realizing cost synergies through 'One Sudarshan' integration, and a 'Value Capture Funnel' targeting EUR 90-100 million EBITDA from the acquired group by FY28/29. The strategy includes recipe harmonization and renegotiating volume rebates.
Products & Services
Organic and inorganic pigments sold to the coatings, plastics, inks, and automotive industries; engineering equipment and solutions through RIECO Industries.
Brand Portfolio
Sudarshan, Heubach, RIECO.
New Products/Services
Focus on 'Specialty Pigments' which are expected to improve margins to 13-14% for the legacy business over the medium term.
Market Expansion
Targeting global market leadership by integrating Heubach's 17 facilities; specifically seeing strong growth in North America and Middle Eastern regions.
Market Share & Ranking
Post-acquisition, the group is the 2nd largest player in the global pigment sector.
Strategic Alliances
Acquisition of Heubach Group (share deal and asset deal) via Sudarshan Europe B.V.
External Factors
Industry Trends
The industry is undergoing global consolidation. Sudarshan is positioning itself as a cost-efficient global leader by acquiring distressed but high-scale assets (Heubach) to gain immediate market share and a global manufacturing footprint.
Competitive Landscape
The landscape is consolidating; major competitors include global pigment manufacturers. Sudarshan noted that during Heubach's insolvency, customers shifted to competitors, creating a challenge to win back market share.
Competitive Moat
The moat is built on extensive promoter experience, a global distribution network, and a diversified product range. Post-acquisition, the scale (2nd largest globally) creates a cost leadership moat through 'One Sudarshan' synergies.
Macro Economic Sensitivity
Highly sensitive to global interest rates and inflation; high rates have led to lower demand in the automotive and paint industries, which are primary end-markets for pigments.
Consumer Behavior
Shift toward specialty and high-performance pigments in coatings and plastics is driving the company's product mix strategy.
Geopolitical Risks
The Ukraine-Russia conflict significantly impacted the Heubach Group by raising energy prices in Europe, leading to its eventual bankruptcy filing before the Sudarshan acquisition.
Regulatory & Governance
Industry Regulations
The Heubach transaction is subject to various regulatory approvals and mandatory open offer requirements under SEBI SAST Regulations, 2011 for a 26% stake in certain entities.
Environmental Compliance
Specific water intensity was reduced by 40% to 32.54 KL per crore of revenue. The company views ESG commitment as vital for maintaining access to overseas borrowings.
Taxation Policy Impact
Not specifically disclosed, but land monetization proceeds of INR 287 Cr were reported 'net of tax'.
Legal Contingencies
Heubach Group filed for bankruptcy/insolvency prior to the acquisition; Sudarshan is acquiring assets and shares to restructure these operations.
Risk Analysis
Key Uncertainties
The primary risk is the 'turnaround phase' of the Heubach Group, which is three times larger than Sudarshan's current operations. Failure to realize cost synergies could keep net debt-to-EBITDA above 3.0x beyond FY27.
Geographic Concentration Risk
53% of revenue is from overseas markets, making the company vulnerable to macroeconomic instability in Europe and trade barriers.
Third Party Dependencies
Exposure to volatility in commodity prices for raw materials is a noted weakness.
Technology Obsolescence Risk
The company is mitigating tech risks through 'Systems and data integration' to solidify the 'One Sudarshan' platform.
Credit & Counterparty Risk
Receivables quality is supported by a 'marquee clientele,' though the company is monitoring liquidity closely as debt obligations rise.
