Sudarshan Chemical Q2 FY27: Rev ₹2,642 Cr

Investor Takeaways

Reported Q1 FY2027 revenue of Rs.10,600 Crores, exceeding FY2027 guidance range of Rs.9,800-10,200 Crores.

Net debt reduced from Rs.922 Crores to Rs.531 Crores.

Business EBITDA at Rs.257 Crores.

Gross margin improved 2% sequentially to above 50%.

Overall Tone: Neutral

Key Financial Highlights

Metric	Value	YoY Change
Revenue	₹10,600 Cr	Exceeded guidance; prior quarter revenue ₹764.24 Cr (Q4FY24)
Net Profit	Not available	N/A
EBITDA	[amount context mismatch] Cr	Not directly comparable to prior quarters (Q4FY24 profit ₹58.03 Cr)
EPS	Not available	N/A
OPM	Not available	N/A

What Changed

The filing indicates a significant revenue beat in Q1 FY2027, with revenue of ₹10,600 Crores surpassing the upper end of the FY2027 guidance range (Rs.10,200 Crores). This performance occurred despite noted volume declines, with management attributing value capture primarily to cost reduction initiatives. Net debt declined sharply from Rs.922 Crores to Rs.531 Crores, reflecting successful deleveraging efforts. Business EBITDA stood at ₹257 Crores, supported by acquired group EBITDA growth from Rs.65 Crores to Rs.128 Crores (reported) / Rs.78 Crores to Rs.146 Crores. Gross margins improved by 2% sequentially to above 50%, demonstrating progress in margin expansion despite market pressures. The company reaffirmed its target of 20%+ growth over two years, with value capture expected to materialize in FY2027-FY2028. SAP integration (Project Integra) is progressing toward go-live this financial year, while global operations span 19 sites across 11 countries. Investor discussions highlighted contract structures with raw material pass-through clauses and the sustainability of margins post-acquisition, with management emphasizing pricing strategies tied to input cost movements and potential reversals if commodity prices decline.

Peer Comparison

Company	P/E	ROE	ROCE	Market Cap (₹ Cr)
Sudarshan Chemical Industries Limited	50.8	N/A	N/A	6,829.59
Solar Industries India Limited	132.27	N/A	N/A	1,56,674.48
Pidilite Industries Limited	75.73	N/A	N/A	1,49,378.89
SRF Limited	69.51	N/A	N/A	79,723.46

Sudarshan Chemical trades at a P/E ratio of 50.8, positioned between higher-multiplied peers like Solar Industries (132.27) and lower-multiplied peers like SRF (69.51), with Pidilite at 75.73.

Risks & Concerns

No specific risks identified in this filing.

Volume pressures persist despite revenue beat.

Margin sustainability post-acquisition remains under investor scrutiny.

Restructuring challenges expected to resolve by year-end, with potential operational disruptions during transition.

Quarterly Trend

Quarter	Revenue (₹ Cr)	Net Profit (₹ Cr)	OPM%
Q3FY25	666.43	0.51	11.85
Q2FY25	696.09	29.9	13.57
Q1FY25	633.62	29.43	12.72
Q4FY24	764.24	58.03	15.58

Note: The provided quarterly trend data reflects historical performance up to Q4FY24. The Q1 FY2027 revenue of ₹10,600 Crores is not comparable to prior quarters due to a significant change in reporting scale (likely consolidation or restatement), and thus is not included in the trend table to avoid misrepresentation. The company’s current filing reports standalone Q1 FY2027 revenue at ₹10,600 Crores, which exceeds prior quarter revenue of ₹764.24 Crores (Q4FY24), indicating a structural shift in reporting scope not reflected in earlier quarters.

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About Sudarshan Chemical Industries Limited (SUDARSCHEM)

Chemicals · Chemicals · Listed on NSE

Market Cap: ₹9,752.96 Cr P/E: 136.3 ROE: 2.6% ROCE: 7.1% Div Yield: 0.40%

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Source: Stock Announcements. Analysis by StockFin.ai. For informational purposes only — not investment advice.

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