Sudarshan Chemical Q1 FY27 Revenue Rs 2642 Cr

Event Type: The document is a transcript of an earnings conference call held with Analysts and Institutional Investors to discuss the company's quarterly financial performance.
Event Date and Time: The call took place on Friday, 14th August, 2026. A specific start time was not mentioned in the provided transcript.
Purpose of Event: The primary purpose was to discuss the Unaudited Financial Results (Stand-alone and Consolidated) for the quarter ended 30th June, 2026 (Q1 FY2027).
Earnings Announcement Timing: The call was held after the announcement of the financial results.
Management Participants: The following management members participated:
Mr. Rajesh Rathi – Chairman & Managing Director
Mr. Amitabha Mukhopadhyay – Non-Executive and Non-Independent Director
Mr. Nilkanth Natu – Chief Financial Officer
Mr. Amey Athalye – Vice President, Finance
Availability of Materials: The transcript of the call was uploaded to the company's website at www.sudarshan.com. There was no mention of a presentation deck or recording being made available.
UPSI Statement: The transcript did not contain an explicit statement confirming that no Unpublished Price Sensitive Information (UPSI) would be shared.

Financial Period & Highlights Discussed:

The discussion centered on Q1 FY2027 (quarter ended 30th June, 2026) results.

Consolidated Performance: Revenue from operations was Rs. 2642 Crores. Business EBITDA (operating profit excluding inventory change impact) was Rs. 247 Crores. Reported EBITDA was Rs. 266 Crores.
Legacy Sudarshan Performance: Showed a good increase in sales, with an expectation to continue growth in the region of 12-13%.
Acquired Group (Clariant/Heubach) Performance: Grew sales by 5% despite geopolitical challenges. Business EBITDA for the acquired group was Rs. 128 Crores (up from Rs. 65 Cr YoY), and reported EBITDA was Rs. 146 Crores. An Rs. 18 Cr inventoried overhead impact was noted due to increased inventory.
RIECO Business Performance: Faced challenges with revenue at Rs. 38 Crores and a drop in EBITDA due to customer-side delays and subcontractor manpower issues. A transformation journey for this business is ongoing.
Key Ratios: Earnings per share for the quarter was Rs. 12.3 (not annualized). Return on Capital Employed (annualized) was 22.7%. Net debt stood at Rs. 531 Crores, reduced from a peak of Rs. 922 Cr. The debt-to-equity leverage ratio was 0.2, and net working capital (annualized) was 23.6%.

Forward-Looking Statements & Strategic Themes:

Guidance: For the acquired group, the company reaffirmed its FY2027 guidance of EUR 700 million turnover and EUR 35 million EBITDA. However, due to the current geopolitical situation, management is not revising this guidance upward despite a strong Q1 and will reconsider after Q2.
Strategic Priorities: Key priorities for the year include value capture (cost reduction), releasing cash from working capital, implementing the One SAP system (Project Integra), and continuing the development of the Global Capability Center (GCC) in Pune.
Long-Term Aspiration: The company aspires to achieve a debt-free level and reach an EBITDA seven times what it was in 2023.
Integration Update: The integration of the Clariant/Heubach business is progressing well, creating a unified culture. The company now has 19 manufacturing sites in 11 countries, over 1600 products, and over 4000 global customers, with a turnover close to EUR 1 billion.

Attachment: The regulatory filing states that the transcript was enclosed and uploaded to the company website.
Financial Data: Significant financial data was disclosed and discussed in the transcript, including revenue, EBITDA (business and reported), net debt, EPS, and ROCE.