Sudarshan Q1FY27: consolidated PAT up 88% YoY to ₹103 Cr as margins expand, revenue +5%

Sudarshan Chemical's consolidated (primary basis) Q1 FY27 profit for the quarter rose to ₹103.4 Cr from ₹55.0 Cr a year ago (+88% YoY; owners' share ₹97.3 Cr vs ₹47.2 Cr, +106%), on revenue of ₹2,642.1 Cr, up a modest 5.4% YoY but down 5.3% QoQ from ₹2,789.9 Cr — the QoQ dip is a sequential normalisation off a strong March-quarter order push rather than a fresh demand signal, and is not the headline here since YoY is the primary read. Net margin expanded to ~3.9% from 2.2% a year ago, and segment EBITDA margin (per the Part II disclosure) improved to ~9.8% (₹258.8 Cr) from 7.7% (₹192.4 Cr), helped by cost of materials falling to ~51.6% of revenue from ~54.9% and a ₹6.1 Cr higher joint-venture profit contribution (₹13.2 Cr vs ₹7.1 Cr). No exceptional items hit either period, so reported and adjusted growth are the same — but the print absorbed ₹36.1 Cr of Heubach-related integration and restructuring costs embedded in opex, meaning underlying margin progress would look even stronger excluding that drag.

The standalone (India-only) entity tells a different story and the divergence is material: standalone revenue actually grew faster than consolidated at 27.5% YoY (₹677.4 Cr vs ₹531.2 Cr), yet standalone PAT fell 21% YoY to ₹57.8 Cr from ₹73.3 Cr. The gap is explained by a ₹62.6 Cr unfavourable foreign-exchange swing embedded in other expenses (a ₹5.7 Cr loss this quarter versus a ₹56.9 Cr gain in the year-ago quarter) — stripping that swing out, standalone opex growth (~19%) tracked broadly with revenue growth. Readers comparing the two statements should treat consolidated as the operative number; the standalone decline is a forex-timing effect, not a demand or cost-structure deterioration.

The stock went into the print at ₹1,044.7, down 2% over the past month of trading.

For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 2 consecutive quarters.

On guidance: management's last concall projected Heubach EBITDA of $35 million for FY27 and $90-100 million over 3-4 years, with near-term demand described as cautiously watched given geopolitical uncertainty; this filing does not break out Heubach-specific quarterly EBITDA (only Pigments/Others segments are disclosed), so progress against that specific target cannot be verified from the statement itself — treated as unknown rather than assumed met. No management press release or commentary beyond the regulatory board-outcome letter was available for this filing, and no analyst consensus figure for this specific quarter's revenue or PAT could be sourced, so the print is also unscored against Street. Alongside results, the Board also approved in-principle internal restructuring to directly acquire the Company's existing 70.26% indirect stake in Sudarshan Colorants India Limited (formerly Heubach Colorants India) from intermediate Europe/Switzerland holding entities — a related-party, arm's-length, cash-funded reorganisation with no announced price or timeline and no control or operational impact, so no P&L effect this quarter.