Sudarshan Colorants India Ltd (SUDARCOLOR)
🎯 Key Takeaways
- Sudarshan Colorants India Ltd is navigating a mature phase marked by declining revenue trends and margin pressure, despite a strong balance sheet and consistent promoter holding. The company operates in a competitive chemicals segment with no debt but faces headwinds from industry oversupply and subdued demand, requiring operational discipline to stabilize performance.
- Revenue grew 5.3% QoQ to ₹222 in Q1FY27.
- ⚠️ Sustained revenue decline in a capital-intensive, cyclical industry poses margin compression risks, especially amid global oversupply and pricing pres
📖 The Story
Sudarshan Colorants India Ltd is navigating a mature phase marked by declining revenue trends and margin pressure, despite a strong balance sheet and consistent promoter holding. The company operates in a competitive chemicals segment with no debt but faces headwinds from industry oversupply and subdued demand, requiring operational discipline to stabilize performance.
📰 What's Happening
The company held its 69th AGM on August 18, 2026, where shareholders approved the adoption of FY2025-26 audited financial statements, appointed a new director to replace Mandar Velankar, and ratified cost auditor remuneration for FY2026-27. The meeting was conducted virtually via e-voting through NSDL, reflecting a shift toward digital shareholder engagement. All resolutions passed with requisite majority, ensuring governance continuity. No forward guidance was provided by management during the AGM or in subsequent filings. Shareholding patterns show stable promoter stake at 70.26% in Q1FY27, with minimal movement in institutional and DII holdings, indicating limited investor churn.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 183 | 176 | 211 | 222 |
| Operating Profit | 13 | 6 | -0 | 21 |
| OPM % | 7.0% | 3.6% | -0.2% | 9.2% |
| Net Profit | 16 | -2 | 13 | 20 |
| EPS | ₹7.06 | ₹-0.87 | ₹5.69 | ₹8.82 |
Quarterly revenue has declined sequentially from ₹183 Crores (Sep 2025) to ₹222 Crores (Jun 2026), though operating performance remains volatile, with OPM fluctuating between -0.2% and 9.2%. Net profit dropped sharply in Dec 2025 to a loss of ₹2 Crores before recovering to ₹20 Crores in Jun 2026, suggesting cyclical profitability. EBITDA and margin trends indicate sensitivity to volume and pricing pressures, consistent with industry dynamics. Despite revenue declines, the company maintains robust margins in certain quarters, reflecting cost control in operations.
🔮 Management Outlook & What's Next
Management has not provided explicit forward guidance on revenue recovery, margin improvement, or capex plans in the latest filings. The absence of strategic commentary on growth drivers or market outlook suggests caution in near-term visibility. The focus remains on governance, compliance, and sustaining current operations without aggressive expansion. The company continues to emphasize ESG initiatives, including renewable energy usage and tree plantation, as part of its long-term positioning.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 23 | 23 | 23 | 23 |
| Reserves | 472 | 500 | 533 | 547 |
| Borrowings | 26 | 25 | 24 | 0 |
| Total Liabilities | 752 | 758 | 747 | 805 |
| Fixed Assets | 155 | 151 | 146 | 165 |
| Investments | 4 | 4 | 4 | 4 |
| Total Assets | 752 | 758 | 747 | 805 |
The balance sheet remains exceptionally strong, with zero net debt as of March 2026 and total assets of ₹805 Crores funded by equity of ₹23 Crores and reserves of ₹547 Crores. Borrowings have remained minimal, under ₹25 Crores over the past two years, reflecting a conservative capital structure. Capex of ₹25.34 Crores was deployed in FY26 for capacity expansion, signaling incremental investment despite revenue headwinds. The company prioritizes financial resilience over leverage, maintaining liquidity and low working capital volatility.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2026 |
|---|---|
| Operating | +34 |
| Investing | -73 |
| Financing | -5 |
| Net Cash Flow | -44 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 54.4% | 70.3% | 70.3% | 70.3% |
| FII | 1.3% | 0.2% | 0.2% | 0.2% |
| DII | 10.1% | 0.5% | 0.5% | 0.5% |
| Public | 25.3% | 24.9% | 24.9% | 24.9% |
| # Shareholders | 38,537 | 37,661 | 37,254 | 36,767 |
Promoter holding remains stable at 70.26% in Q1FY27, indicating confidence from the controlling group. However, institutional (FII) and DII ownership are negligible, collectively accounting for less than 1.5% of equity. The number of public shareholders has gradually increased from 36,767 to 38,537 over four quarters, suggesting retail participation but limited foreign or domestic institutional interest. No significant changes in shareholding patterns signal strong alignment between promoters and long-term stakeholders.
⚖️ Peer Comparison — Chemicals
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| PIDILITIND | 1.67 L Cr | 63.2 | 33.4% | 24.7% | 0.01 |
| SRF | 76,535 | 35.4 | 15.6% | 15.4% | 0.36 |
| LINDEINDIA | 54,418 | 99.6 | 17.5% | 12.8% | 0.00 |
| FLUOROCHEM | 52,063 | 85.1 | 9.6% | 7.7% | 0.34 |
| NAVINFLUOR | 44,292 | 56.0 | 22.2% | 19.9% | 0.31 |
| GODREJIND | 38,842 | 33.0 | 9.2% | 19.8% | 4.57 |
| HSCL | 34,339 | 42.7 | 20.7% | 17.1% | 0.16 |
| DEEPAKNTR | 24,328 | 31.1 | 15.3% | 13.4% | 0.26 |
| AETHER | 22,349 | 94.8 | 13.8% | 10.6% | 0.08 |
| AARTIIND | 19,030 | 35.8 | 9.2% | 9.5% | 0.68 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1. Sustained revenue decline in a capital-intensive, cyclical industry poses margin compression risks, especially amid global oversupply and pricing pressure. 2. High promoter concentration (70.26%) creates governance and liquidity risks if exits occur. 3. Lack of dividend payouts and limited institutional interest may hinder valuation re-rating. 4. Regulatory and compliance costs related to ESG and ZLD implementation could impact profitability if not managed efficiently.
📋 Recent Filings
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🟡 Board Meeting 1 September 2026Sudarshan Colorants India announced the resignation of Non-Executive Director Mandar Velankar effective September 1, 2026, as per SEBI Regulation 30 f...
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🔴 Announcement 1 September 2026Sudarshan Colorants India announced the resignation of Non-Executive Director Mandar Velankar effective September 1, 2026, following SEBI Regulation 3...
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Announcement 26 August 2026Sudarshan Colorants India Limited disclosed that a GST and VAT inspection was initiated at its Maharashtra offices and manufacturing unit on August 25...
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🟡 Board Meeting 19 August 2026Sudarshan Colorants India Limited announced voting results from its 69th Annual General Meeting held on August 18, 2026, where all three proposed reso...
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🟡 Board Meeting 18 August 2026Sudarshan Colorants held its 69th AGM on August 18, 2026, approving the audited FY2025-26 financial statements and appointing a new director to replac...
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🔴 annual report 27 July 2026Sudarshan Colorants India Limited (SUDARCOLOR) announced its 69th AGM scheduled for August 18, 2026, via video conference, alongside submission of the...
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🔴 annual report 27 July 2026Sudarshan Colorants India Limited announced its 69th AGM scheduled for August 17, 2026, via video conference, with resolutions to adopt FY2025-26 audi...
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share transfer 7 July 2026Sudarshan Colorants India Limited received a SEBI-mandated certificate from its share transfer agent MUFG Intime India Private Limited confirming dema...
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Financial Results 29 June 2026Sudarshan Colorants India Limited announced that its trading window will close from July 1, 2026, until 48 hours after the unaudited financial results...
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Announcement 24 June 2026Sudarshan Colorants disclosed a GST demand order of Rs. 3.59 crores for April 2025 from Tamil Nadu tax authorities, which it considers appealable with...
🧠 Analyst's Read
Sudarshan Colorants operates with financial strength and governance discipline but faces structural challenges in a soft demand environment. Investors should monitor margin recovery trends, volume growth, and any shift in capex strategy or market share gains to assess inflection points. The absence of forward guidance and institutional inflows warrants caution, though promoter stability provides downside resilience.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-02.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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