Sudarshan Chemical Industries Limited – Investor Presentation Summary

Key Operational Highlights

  • Global manufacturing footprint of 19 sites operating well
  • 12 technical marketing centres supported by 250+ global marketing and innovation team
  • Dedicated global commercial marketing team to identify new market trends
  • Global technical and innovation team driving global innovation projects
  • Regional technical marketing team accelerating new project developments

Segment-wise Performance

Pigment Performance (Q2 FY27):

  • Legacy Sudarshan Pigment: Revenue ₹821 Cr (up 26.0% YoY), Business EBITDA ₹128 Cr (15.6% margin)
  • Acquired Group: Revenue ₹1,962 Cr (up 16.5% YoY), Business EBITDA ₹112 Cr (5.7% margin)
  • Pigment Global: Revenue ₹2,695 Cr (up 15.8% YoY), Business EBITDA ₹242 Cr (9.0% margin)

Pigment Performance (H1 FY27):

  • Legacy Sudarshan Pigment: Revenue ₹1,551 Cr (up 26.2% YoY), Business EBITDA ₹255 Cr (16.5% margin)
  • Acquired Group: Revenue ₹3,935 Cr (up 10.4% YoY), Business EBITDA ₹240 Cr (6.1% margin)
  • Pigment Global: Revenue ₹5,300 Cr (up 10.8% YoY), Business EBITDA ₹499 Cr (9.4% margin)

RIECO Performance (Q2 FY27):

  • Revenue: ₹47 Cr (down 21.3% YoY)
  • EBITDA: -₹3 Cr (-6.4% margin)
  • Facing execution challenges due to supply chain bottlenecks
  • Two late-stage projects experienced cost over-runs fully accounted during the quarter

RIECO Performance (H1 FY27):

  • Revenue: ₹85 Cr (down 23.2% YoY)
  • EBITDA: -₹13 Cr (-15.2% margin)

Financial Highlights

Q2 FY27 Consolidated Performance:

  • Revenue from Operations: ₹2,743 Cr (up 14.9% YoY)
  • Reported EBITDA: ₹261 Cr (up 125.4% YoY)
  • Business EBITDA: ₹239 Cr (up 149.5% YoY)
  • Business EBITDA Margin: 8.7% (up 4.7 percentage points YoY)
  • PBT excl. RPS impact & before exceptional: ₹148 Cr (up 875.8% YoY)

H1 FY27 Consolidated Performance:

  • Revenue from Operations: ₹5,385 Cr (up 10.0% YoY)
  • Reported EBITDA: ₹527 Cr (up 87.1% YoY)
  • Business EBITDA: ₹487 Cr (up 96.2% YoY)
  • Business EBITDA Margin: 9.0% (up 4.1 percentage points YoY)
  • PBT excl. RPS impact: ₹313 Cr (up 357.0% YoY)

Financial Ratios

  • Earnings Per Share (₹): 26.2 (H1 FY27, not annualized and before exceptional items)
  • Return on Capital Employed (%): 22.6% (H1 FY27, annualized)
  • Net debt to Equity Ratio: 0.2 (H1 FY27)
  • Net debt (₹ Cr): 580 (includes ₹50.9 Cr pertaining to subsidiary held for sale)
  • Net working capital as % to sales: 25.3% (H1 FY27, annualized)

Strategic & R&D Initiatives

Integration Updates:

  • Successful go-live of first Wave SAP (Legacy Sudarshan and Heubach India) with minimal disruptions
  • Robust value capture funnel for FY27 with major savings expected in operations excellence and procurement

Innovation Launches:

  • Cosmetics & Personal Care: Sumicos Luxe Gold SM639, Sumicos Super Fine Silver SM112, Sumicair Softfeel Mica 43018
  • New Shades for Cellphones: Black, Graphite & Mint using HMF (Heavy Metal Free) anodizing dyes
  • Plastics: PV Fast Yellow HG for straws, Hostaperm Yellow H4G for wire cabling

Acquisition Activities:

  • Alu Dyes: Acquired Clariant Muttenz manufacturing facility for CHF 7Mn on 'As is, Where is' basis
  • VP4 Asset Sale: Completed deal on November 2nd, 2026 with funds received EUR 75.8 Mn

Management Commentary & Growth Outlook

FY27 H2 Outlook:

  • End-market demand stayed muted in Q2 FY27 with US housing and European construction remaining weak
  • Some leading indicators turning positive: European manufacturing PMI ~52, certain raw material prices coming off Q2 peak
  • Expect signs of demand uptake only towards Q4, not immediately
  • Reaffirm previous FY27 guidance for Acquired Group: Sales ~€700 Mn and EBITDA ~€35 Mn
  • Focus on net working capital efficiency to continue

Shareholder Information

  • Market Cap (₹ Mn): 95,850
  • Free-float: 90.68%
  • Shares Outstanding: 7,96,16,357
  • Shareholding Pattern: Promoters 9.32%, FIIs and FPIs 8.84%, Mutual Funds 25.44%, Others 56.40%