Sudarshan Chemical Industries Ltd (SUDARSCHEM)
🎯 Key Takeaways
- Sudarshan Chemical Industries is in a strategic phase of expansion through its acquisition of a 15.89% stake in Sudarshan Colorants India Limited, marking its first move toward consolidating a broader colorants business.
- Revenue declined 5.3% QoQ to ₹2,642 in Q1FY27.
- ⚠️ The company faces execution risk in integrating the newly acquired stake in Sudarshan Colorants, with no clarity yet on synergies or timeline for full
- Market Cap
- ₹9,479
- P/E Ratio
- 132.5
- P/B Ratio
- 2.77
- ROE
- 2.1%
- ROCE
- 7.1%
- Debt/Equity
- 0.62
- Div Yield
- 0.41%
- Promoter
- 8.2%
📖 The Story
Sudarshan Chemical Industries is in a strategic phase of expansion through its acquisition of a 15.89% stake in Sudarshan Colorants India Limited, marking its first move toward consolidating a broader colorants business. The company is transitioning from a period of operational volatility to a growth-oriented strategy, though profitability remains inconsistent. Management is focused on executing its acquisition plan while maintaining a conservative capital structure.
📰 What's Happening
The company completed the first phase of its proposed acquisition of Sudarshan Colorants India Limited, acquiring a 15.89% stake for INR 150.76 crores, as confirmed in filings dated September 28 and October 1, 2026. Management indicated that further updates will follow as per SEBI regulations, with completion targeted by September 29, 2026. Additionally, Sudarshan scheduled investor meetings with Bowhead India Fund and major mutual funds like DSP, Axis, and Tata to discuss its growth strategy ahead of upcoming results.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|
| Revenue | 2,507 | 2,387 | 2,103 | 2,790 | 2,642 |
| Operating Profit | 93 | 35 | -63 | 177 | 166 |
| OPM % | 3.7% | 1.5% | -3.0% | 6.3% | 6.3% |
| Net Profit | 55 | 19 | -116 | 83 | 103 |
| EPS | ₹6.00 | ₹1.50 | ₹-14.70 | ₹10.00 | ₹12.30 |
Financial performance shows a mixed trend, with revenue stabilizing around ₹2,600–2,800 crores in recent quarters but profitability remaining volatile. Operating margins held at 6.3% in Jun and Mar 2026, up from negative levels in Dec 2025, while net profit improved from a loss of ₹116 crores to ₹103 crores. However, return metrics remain weak, with ROE at 2.6% and ROCE at 7.1%, indicating limited capital efficiency despite revenue recovery.
🔮 Management Outlook & What's Next
Management has not provided explicit forward guidance on margins or growth rates in the available filings, but the acquisition of Sudarshan Colorants is positioned as a strategic step to strengthen market position in the colorants segment. The company emphasized that further updates will be shared in due course under SEBI regulations, suggesting a phased and cautious approach to integration and disclosure.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 16 | 14 | 16 | 16 |
| Reserves | 3,424 | 1,198 | 3,409 | 3,505 |
| Borrowings | 2,378 | 559 | 2,119 | 2,528 |
| Total Liabilities | 9,731 | 2,612 | 9,723 | 9,755 |
| Fixed Assets | 2,820 | 1,031 | 3,012 | 2,916 |
| Investments | 548 | 144 | 566 | 539 |
| Total Assets | 9,731 | 2,612 | 9,723 | 9,755 |
The balance sheet reflects a stable capital structure with equity and reserves holding steady at approximately ₹3,400–3,500 crores, while borrowings remain moderate at around ₹2,100–2,500 crores. Total assets have shown minimal fluctuation, indicating no aggressive capital deployment beyond the INR 150.76 crore acquisition. The company maintains a debt-to-equity ratio of 0.62, suggesting a conservative leverage profile with room for strategic investment.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2026 |
|---|---|
| Operating | +344 |
| Investing | +165 |
| Financing | -680 |
| Net Cash Flow | -171 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 8.2% | 8.2% | 8.2% | 8.2% |
| FII | 8.5% | 8.2% | 8.0% | 8.5% |
| DII | 24.2% | 24.6% | 24.9% | 26.4% |
| Public | 47.9% | 47.7% | 47.4% | 44.5% |
| # Shareholders | 63,691 | 58,122 | 55,044 | 57,744 |
Institutional investor interest has shown a slight decline in FII holdings from 8.54% in Q2FY26 to 7.96% in Q4FY26, while DII holdings rose from 24.18% to 26.43% over the same period, indicating growing domestic institutional confidence. The promoter holding remains stable at 8.19%, and the increasing number of shareholders (57,744 in Q1FY27) suggests broadening retail participation, which may support liquidity.
⚖️ Peer Comparison — Chemicals
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| PIDILITIND | 1.50 L Cr | 56.5 | 33.4% | — | 0.01 |
| SRF | 73,336 | 33.9 | 15.6% | — | 0.36 |
| LINDEINDIA | 54,023 | 98.9 | 17.5% | — | 0.00 |
| FLUOROCHEM | 48,430 | 79.2 | 9.6% | — | 0.34 |
| NAVINFLUOR | 42,306 | 53.5 | 22.2% | — | 0.31 |
| GODREJIND | 34,967 | 29.8 | 9.2% | — | 4.57 |
| HSCL | 34,188 | 42.5 | 20.7% | — | 0.16 |
| AETHER | 22,546 | 95.6 | 13.8% | — | 0.08 |
| DEEPAKNTR | 20,882 | 26.6 | 15.3% | — | 0.26 |
| CASTROLIND | 19,817 | 18.7 | 76.2% | — | 0.00 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
The company faces execution risk in integrating the newly acquired stake in Sudarshan Colorants, with no clarity yet on synergies or timeline for full integration. Persistent weak profitability and low return ratios raise concerns about capital efficiency. Additionally, the chemical sector's cyclicality and raw material price volatility could pressure margins if not managed proactively.
📋 Recent Filings
- 🔴 Corporate Action2026-10-01Sudarshan Chemical Industries announced completion of acquiring 36,68,036 shares representing 15.89% of Sudarshan Colorants India Limited for INR 150.…
- 🔴 Corporate Action2026-09-28Sudarshan Chemical Industries announced on September 28, 2026 that it will acquire 36,68,036 shares representing 15.89% of Sudarshan Colorants India L…
- Announcement2026-09-28Sudarshan Chemical Industries announced that its trading window will close on 1 October 2026, remaining shut for 48 hours after the release of unaudit…
- 🔴 Announcement2026-09-26Sudarshan Chemical Industries announced a scheduled virtual one-on-one meeting with Bowhead India Fund on September 30, 2026 at 5:00 PM IST, providing…
- 🔴 Announcement2026-09-24Sudarshan Chemical Industries announced an analyst and institutional investor conference call on September 29, 2026, featuring one-on-one meetings wit…
- 🟡 Board Meeting2026-09-21Sudarshan Chemical announced the appointment of Amit Deshpande as General Counsel effective 21 September 2026, reporting to the Chairman and Managing …
- 🔴 Announcement2026-09-11Sudarshan Chemical Industries announced that CRISIL independently assigned an ESG rating of Crisil ESG 53 and a Core ESG rating of Crisil Core ESG 55 …
- 🔴 Announcement2026-09-11Sudarshan Chemical Industries announced that CRISIL reaffirmed its A1+ rating on a Rs. 50 crore commercial paper, maintaining the same rating and outl…
- 🔴 Announcement2026-09-02Sudarshan Chemical Industries issued an errata correcting a typo on slide 3 of its investor presentation regarding the sale of its VP4 Frankfurt GmbH …
- 🔴 Announcement2026-09-01Sudarshan Chemical Industries announced the sale of its 100% stake in VP4 Frankfurt GmbH, a subsidiary engaged in tolling operations, to Celanese US H…
🧠 Analyst's Read
Sudarshan Chemical Industries is transitioning from operational instability to a strategic growth phase, anchored by its acquisition of Sudarshan Colorants. Investors should monitor management’s next steps on integration, capital allocation, and whether upcoming results reflect early benefits from the new stake. The company’s ability to improve returns and sustain margin recovery will be critical to validating its growth narrative.
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 2026-10-01.
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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