Company Disclosure Overview

Sudarshan Chemical Industries Limited (Scrip Code: 506655) disclosed comprehensive financial and governance information for FY 2025-26 through multiple regulatory filings submitted to BSE and NSE pursuant to SEBI Listing Regulations.

Annual General Meeting & Dividend

Convened its 75th AGM on August 18, 2026, recommending a final dividend of ₹5.00 per equity share (250%) for FY26, subject to shareholder approval. Record date set for August 11, 2026, with payment scheduled on or before September 8, 2026. Total dividend payout amounted to ₹39.3 crore for the fiscal year.

Financial Performance

Consolidated Results (including Heubach acquisition)

  • Revenue from Operations: ₹9,787 crore
  • EBITDA: ₹579 crore with 5.9% margin
  • Return on Capital Employed: 10.8% (adjusted)
  • Profit After Tax: ₹41 crore

Standalone Performance (Sudarshan legacy business)

  • Revenue from Operations: ₹2,396.7 crore
  • Profit After Tax: ₹290.3 crore
  • EBITDA: ₹527.1 crore
  • Basic EPS: ₹36.9

Heubach Group Acquisition Integration

Completed the ₹1,277 crore acquisition on March 3, 2025, creating a global color solutions leader with:

  • 19 manufacturing facilities across 11 countries
  • 4,000+ global customers across 120+ countries
  • 1,600+ products under 63 brands
  • 3,825 employees globally

Integration progress includes SAP consolidation project and inauguration of a Global Capability Center in Pune. The acquisition resulted in a bargain purchase gain of ₹1,196.3 crore recognized in OCI.

Corporate Governance & Board Changes

Multiple director changes occurred during FY26:

  • Mr. Pradeep Rathi resigned as Chairman effective May 29, 2025
  • Mr. Rajesh Rathi appointed as Chairman in addition to MD role
  • Mrs. Shubhalakshmi Panse ceased as Independent Director after completing second term
  • New appointments: Mr. Apurva Chandra and Mr. Rajendra Mariwala as Independent Directors; Mr. Amitabha Mukhopadhyay and Mr. Sanjay Asher as Non-Independent Directors

Director remuneration included ₹16.2 crore for MD Mr. Rajesh Rathi. The company maintained comprehensive board committees and obtained clean governance certifications.

Employee Benefit Obligations

Detailed actuarial disclosures for defined benefit plans:

  • Gratuity: ₹32.2 crore net liability (₹52.1 crore obligation less ₹19.9 crore assets)
  • Pension: Discontinued effective February 1, 2026, with ₹4.4 crore curtailment gain
  • Leave Encashment: ₹11.9 crore total provision

Risk Management & Provisions

Comprehensive risk management framework covering:

  • Foreign exchange risk sensitivity: ₹20.3 crore impact for 2% rate change
  • Credit risk: ₹44.8 crore provision for expected credit losses
  • Total provisions: ₹832.2 crore including employee benefits (₹152.6 crore), onerous contracts (₹138.6 crore), and litigation (₹83.7 crore)

Subsidiaries & Investments

56 subsidiaries (including step-down) and 2 joint ventures. Material subsidiaries include Sudarshan Colorants India Limited (70.25% holding), Sudarshan Europe B.V., and RIECO Industries Limited. Corporate guarantees of ₹2,719.8 crore provided to subsidiaries.

Regulatory Compliance & Contingencies

Paid ₹11.14 lakh fines to BSE/NSE for delayed financial results submission. Contingent liabilities include ₹180.7 crore GST demands under dispute and ₹36.1 crore electricity duty matter sub-judice with Bombay High Court.

ESG Initiatives

  • Renewable energy: 56% of purchased electricity
  • Water conservation: 27.28% reduction in freshwater consumption
  • Waste management: 71.3% waste diverted from landfill
  • Gender diversity: 24% women in workforce; 30% women on Board
  • CSR spending: ₹2.42 crore exceeding 2% requirement

Capital Structure

ESOP allotments totaling 39,051 shares during FY26. Post-ESOP paid-up capital of ₹15.72 crore comprising 7,86,11,936 shares as of March 31, 2026. Net debt-equity ratio of 0.34 with total debt of ₹2,119.0 crore.

The comprehensive disclosures demonstrate Sudarshan Chemical's transition into a global pigments leader post-Heubach acquisition, with strong governance practices and detailed financial transparency across all operational aspects.