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Sudarshan Chemicals reported Q1 FY26 Rs25.1bn consolidated revenue (y/y, q/q not comparable), with Heubach contributing Rs18.8bn and the pigment business Rs5.8bn (down 2% y/y).

Driven by the initial consolidation of Heubach (for 28 days; y/y, q/q not comparable), which brought Rs5.25bn revenue and a 55.8% gross margin in Mar, Sudarshan Chemicals’ Q4 FY25 revenue was up 77% y/y to Rs13.5bn and adj. EBITDA, 24% y/y to Rs1.48bn.

Revenues reached Rs. 696 crore, marking a 16% y-o-y increase and a 10% q-o-q rise, with
exports growing by 44% y-o-y.

Sudarshan Chemical Industries’ (SCIL) Q4FY23 print showed early signs of demand revival across categories. SCIL sees tailwinds from recovery in demand; it is receiving good response for its new products, which are niche chemistries; ramp up in new capacity to provide pigment segment revenue visibility of Rs30-33bn and softening raw material prices will help normalise margins.

We estimate a 27.5% CAGR revenue, over FY22-24E, driven by upcoming capacities in Dye Intermediates and SSP fertiliser. We expect SPCFL to post CAGR of 21.89% for PAT during FY22-24E.

dumping duty on natural mica-based pearl industrial pigments, excluding cosmeticgrade products. The duty will be ~US$2-3/kg and will be levied for five years. As per the initial document filed by the company, overall import volumes for mica pigment from key geographies is at ~2181 MT at an imported price of | 380/kg. The price undercutting is estimated to be ~20-30% as on inquiry date. Mica pigment currently contributes in low single digits to overall revenue of Sudarshan Chemical. Based on our calculation, sales volumes should be ~1300 MT against total capacity of ~3000 MT as per the pre-feasibility study report filed earlier. We expect potential earnings benefits due to price hike to be ~4-5% on FY21 PAT. We have not factored in any...

Strong volume growth drove H2 but sharp intermediate price increases impacted margins. However, the company expects to pass on most of the raw material inflation to end users. Despite pandemic, Sudarshan has almost competed | 600 crore of capex (revenue potential of | 1000-1200 crore), which gives strong visibility and management commitment towards future growth. The company's strong track record, with favourable macro factors and strong domestic demand are key catalysts for future course. Margins are also likely to improve due to backward integration and increase speciality...

The company's operations and demand from end users are reverting back to normal as the economy opens up. The company's H2 is also likely to benefit amid some pent-up demand. Owing to strong demand, the company is trying to expedite its growth capex plans of | 585 crore (which have been bit delayed amid Covid), which gives strong visibility and management commitment towards future growth. Sudarshan's strong track record, with favourable macro factors and strong domestic demand are key catalysts for it. Margins are also likely to improve due to backward integration and change...

Operating revenue in coming years is expected to show a marginal growth despite impact of pandemic, owing to healthy demand recovery seen from August onwards aided by higher exports as well as buoyant domestic demand. Q2 FY21 domestic business is up 70% as compared to Q1 FY21 which is reflective of the broader economy in India now coming back to normal. Further, company seeing good traction across the portfolio with coating, plastics and inks particularly doing well. Besides, global market position is expected to improve further...

Sudarshan Chemical Industries Limited (SCIL) reported better-than-expected recovery in revenue at Rs. 429 crore (up 1% y-o-y versus our expectation of 4.9% y-o-y drop), led by better performance in the domestic business. EBITDA margin was in-line at 15.4% (up 75 bps y-o-y). Strong recovery was seen in August-September in the domestic business (up 70% q-o-q) across...

Q2 results were better than I-direct estimates on all fronts. The company's operations and demand from end users are reverting to normal as the economy opens up. Despite a challenging year, Sudarshan has reiterated its growth capex plan of | 585 crore (though delayed amid Covid), which shows its strong visibility and commitment towards future growth. Its strong track record, with favourable macro factors and strong domestic demand are key catalysts for it. Margins are also likely to improve due to backward integration, change in product mix towards margin accretive products. We...

Q1FY21 revenue of Bodal Chemicals de-grew by 68.4% YoY to Rs1178mn. Revenues were Despite challenges in the demand environment, TVS Motor Company (TVS) reported good severely impacted due to lockdown in the country which led to temporary shutdown of the...

On SPS Processors, the company has received approvals to start the VS plant, however, Navratri/Dussehra post clarification on GST, management intends to start the plant once the demand scenario improves. We expect good monsoon & attractive pricing/offers....

Largely Unaffected Q4; Lockdown likely to impact Q1FY21 earnings We expect the companies under our chemicals coverage to report revenue growth of ~4.2% in Q4FY20 with 7.3% growth in profitability, driven by the benefit of price increase in few chemicals and reduction in the tax rate. Chemicals being basic building blocks of end-user applications are most likely to feel the slowdown in demand due to nationwide restricted movement. Indian chemical companies' have a raw material dependency on China. Still, most companies have adequate inventory to cater to demand in the near-term (at least for the current quarter). With the gradual resumption of work in Chinese factories, supply issues are expected to resolve. Additionally, crude derivatives as raw material for chemical companies will be positive for the gross margins given the drop in oil prices....