Sudarshan Chemical reports mixed Q2 FY26 results amid soft demand

Sudarshan Chemical Industries Limited reported unaudited financial results for Q2 and H1 FY26, with Q2 revenue for One Sudarshan growing 2.2% year-on-year to ₹2,387 crore, a 13% quarter-on-quarter increase. However, the acquired group’s sales run rate decreased to ₹561 crore in Q2 from ₹627 crore in Q1. Adjusted EBITDA for One Sudarshan in Q2 was ₹116 crore, a 3.5% decrease year-on-year, with a margin of 4.9%.

For the first half of FY26, One Sudarshan’s sales reached ₹4,894 crore. Legacy Sudarshan pigment sales marginally declined by 1.6% due to softness in Europe, North LatAm, and Middle-East Africa. The acquired group’s average monthly sales run rate for H1 FY26 was approximately ₹594 crore. PBT for One Sudarshan stood at ₹30 crore in Q2 FY26 and ₹112 crore for H1 FY26.

The company attributes these results to low demand across most pigment end-use industries, particularly coatings and plastics, driven by high interest rates and overall low economic growth. High stock levels at customer sites, accumulated during Heubach's insolvency, are depleting slower than expected, further impacting demand. The company is actively pursuing value capture initiatives and integration efforts to mitigate these challenges.