Ushanti Colour Chem Limited (UCL)
Latest quarterly results (H2 FY26)
In its latest reported quarter, H2 FY26, Ushanti Colour's revenue was ₹84.0 Cr (+265.2% year on year, +52.7% on the previous half-year), and net profit ₹-1.0 Cr (a smaller loss than a year earlier); the operating margin was 1.2%.
| H2 FY26 (₹ Cr) | Value | YoY vs H2 FY25 | vs prev. half |
|---|---|---|---|
| Revenue | ₹84.0 | +265.2% | +52.7% |
| Operating profit | ₹1.0 | -50.0% | — |
| Net profit | ₹-1.0 | loss narrowed | loss narrowed |
| EPS (₹) | 1.38 | from loss | from loss |
| Operating margin | 1.2% | — | — |
📢 Recent Corporate Announcements
Ushanti Colour Chem Limited has submitted the scrutinizer's report and voting results for its 33rd Annual General Meeting held on September 26, 2026. All 4 resolutions were passed with 100% of votes cast in favor. Passed items included adoption of FY26 financial statements, re-appointment of Joint Managing Director Minku Shantilal Gandhi, and approval of remuneration for office of profit under Section 188 for Arjun Maunal Gandhi and Aadit Minku Gandhi. A total of 67,79,265 votes were polled across 1,38,86,700 total outstanding shares for the general resolutions.
- All 4 resolutions approved with 100% votes cast in favor
- Overall voter turnout was 48.82% (67,79,265 votes polled out of 1,38,86,700 total shares) for resolutions 1 and 2
- Resolutions 3 and 4 (related-party office of profit remuneration) received 19,32,700 public non-institution votes with promoter abstention
- Meeting was attended by 9 promoter and 11 public shareholders in person/proxy on the record date of September 19, 2026
Ushanti Colour Chem Limited has issued the notice for its 33rd Annual General Meeting scheduled for September 26, 2026. The remote e-voting window is set from September 23 to September 25, 2026, with a cut-off date of September 19, 2026. Key agenda items include the adoption of FY26 financial statements and special resolutions under Section 188(1)(f) to approve the appointment and remuneration of promoter relatives (including Mr. Arjun Maunal Gandhi at an annual CTC of ₹60,00,000 for 3 years) to offices of profit.
- 33rd Annual General Meeting scheduled on Saturday, September 26, 2026 at 11:30 AM IST
- Cut-off date for e-voting eligibility fixed as September 19, 2026
- Remote e-voting window runs from September 23, 2026 (9:00 AM) to September 25, 2026 (5:00 PM)
- Proposed remuneration of ₹60,00,000 per annum (₹5,00,000/month) for Mr. Arjun Maunal Gandhi for a 3-year term (Aug 20, 2026 to Aug 19, 2029)
Ushanti Colour Chem Limited announced the outcome of its Board Meeting held on August 20, 2026. The Board approved convening the 33rd Annual General Meeting (AGM) of equity shareholders on Saturday, September 26, 2026, at 11:30 AM IST in physical mode at Ahmedabad. The Board also approved the Directors' Report and appointed CS Kunal Sharma as Scrutinizer for the voting process. Details regarding the record date, book closure, and e-voting timelines will be disclosed separately.
- 33rd Annual General Meeting scheduled for Saturday, September 26, 2026, at 11:30 AM IST.
- Meeting to be held physically at the Registered Office in Vatva, Ahmedabad.
- CS Kunal Sharma appointed as Scrutinizer for remote e-voting and ballot voting.
- Board meeting concluded within 30 minutes (12:00 PM IST to 12:30 PM IST).
Financial Performance
Revenue Growth by Segment
The company operates in a single business segment (Dyes and Intermediates). Revenue from operations grew by 86.02% YoY, reaching INR 4,490.03 Lakhs in H1 FY26 compared to INR 2,413.75 Lakhs in H1 FY25. For the full year FY25, revenue was INR 4,861.07 Lakhs.
Profitability Margins
Net profit margins have seen significant compression. In FY25, the net margin was 3.73% (INR 181.48 Lakhs profit on INR 4,861.07 Lakhs revenue). In H1 FY26, this dropped to 0.55% (INR 24.72 Lakhs profit on INR 4,490.03 Lakhs revenue) due to a surge in lower-margin trading activities.
EBITDA Margin
Operating profitability is under pressure; Profit Before Tax (PBT) margin was 3.90% in FY25 and declined to 1.32% in H1 FY26. Notably, interest income of INR 290.11 Lakhs in FY25 exceeded the total PBT of INR 189.68 Lakhs, indicating that core operations were loss-making without other income.
Capital Expenditure
The company significantly increased its investment in infrastructure, with purchase of fixed assets totaling INR 695.45 Lakhs in H1 FY26, a 707.8% increase over the INR 86.09 Lakhs spent in H1 FY25.
Credit Rating & Borrowing
Short-term borrowings were reduced by 42.42%, falling from INR 1,280.70 Lakhs in March 2025 to INR 737.44 Lakhs by September 2025. Finance costs for H1 FY26 were INR 59.36 Lakhs.
Operational Drivers
Raw Materials
Chemical intermediates and raw materials for dye manufacturing (e.g., pigments and synthetic organic dyes) represent 54.53% of total operational revenue.
Capacity Expansion
Tangible assets increased from INR 6,156.94 Lakhs in March 2025 to INR 6,675.93 Lakhs in September 2025, reflecting an expansion of INR 518.99 Lakhs in installed capacity.
Raw Material Costs
Cost of materials consumed was INR 2,448.66 Lakhs in H1 FY26 (54.53% of revenue). Purchase of stock-in-trade surged by 1,524% YoY to INR 1,515.47 Lakhs in H1 FY26, indicating a strategic shift toward trading.
Manufacturing Efficiency
Manufacturing expenses decreased by 4.3% YoY in H1 FY26 despite the revenue jump, suggesting a shift in the business mix from manufacturing to trading.
Logistics & Distribution
Other expenses, including distribution, were INR 77.06 Lakhs in H1 FY26, down from INR 91.29 Lakhs in H1 FY25.
Strategic Growth
Expected Growth Rate
86%
Growth Strategy
Growth is being driven by a massive expansion in the trading business (stock-in-trade purchases up 1,524% YoY) and a 707% increase in capital expenditure for fixed assets to enhance manufacturing capabilities. The company is also leveraging its subsidiary, UC Colours and Intermediates Private Limited, for broader market reach.
Products & Services
Synthetic organic dyes, pigments, and chemical intermediates used in the textile, ink, and plastic industries.
Brand Portfolio
Ushanti, UC Colours.
Market Expansion
The company is expanding its trading operations significantly, as evidenced by the INR 1,515.47 Lakhs purchase of stock-in-trade in H1 FY26 compared to just INR 93.31 Lakhs in the previous year.
Strategic Alliances
The company operates through its subsidiary, UC Colours and Intermediates Private Limited.
External Factors
Industry Trends
The industry is seeing a trend toward consolidation and a shift in business models from pure manufacturing to a mix of manufacturing and trading to manage volatile raw material costs.
Competitive Landscape
The company operates in a fragmented dyes and chemicals market, facing competition from both domestic manufacturers and large-scale traders.
Competitive Moat
The company's moat is based on its established manufacturing infrastructure (INR 6,675.93 Lakhs in tangible assets) and its status as an SME with specific regulatory exemptions, though low operating margins suggest a weak competitive moat.
Macro Economic Sensitivity
Highly sensitive to industrial production cycles in the textile and pigment sectors, which drive demand for dyes.
Consumer Behavior
Increased demand for colorants in consumer goods and textiles is driving the 86% YoY revenue growth.
Regulatory & Governance
Industry Regulations
The company is subject to chemical manufacturing standards and pollution control norms; however, it is exempt from certain Corporate Governance provisions under Regulation 15(2) of SEBI (LODR) Regulations.
Taxation Policy Impact
The effective tax rate for FY25 was approximately 4.3% (INR 8.21 Lakhs tax on INR 189.68 Lakhs PBT), aided by deferred tax assets of INR 23.97 Lakhs.
Legal Contingencies
The company reported that it does not have any pending litigations that would impact its financial position as of March 31, 2025.
Risk Analysis
Key Uncertainties
The primary risk is the reliance on non-operating income (interest income) to maintain profitability. A 50% reduction in interest income would have turned the FY25 profit into a significant loss.
Third Party Dependencies
High dependency on external suppliers for stock-in-trade, which now constitutes 33.7% of total revenue from operations.
Technology Obsolescence Risk
The company is investing in tangible assets (INR 695.45 Lakhs capex) to modernize its manufacturing base and mitigate obsolescence.
Credit & Counterparty Risk
Trade payables surged to INR 2,360.72 Lakhs in September 2025 from INR 684.19 Lakhs in March 2025, a 245% increase, indicating high reliance on supplier credit.
