SUDARSCHEM
Micro CapSudarshan Chemical Industries Limited
Industrials
Sudarshan Chemical Industries is a global pigment leader, formed by uniting with Heubach, boasting 75+ years of experience, 11 manufacturing sites across 100+ countries, and ~1,600 pigment products. The company aims for a value-creating, customer-centric, and agile approach, targeting ~€1bn annual turnover.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust needs verification, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Average · 32/100margin compression · Rev +107% YoY · +33% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,790 Cr | +106.8% | +32.7% |
| EBITDA | ₹227 Cr | +78.7% | +497.4% |
| Operating margin | 8.0% | -100 bps | +600 bps |
| PAT | ₹82 Cr | NDF | NDF |
| PAT margin | 2.9% | +294 bps | +846 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Q4 FY26 Consolidated Revenue from Operations grew 6.6% YoY and ~36% QoQ to ₹2,790 Cr. Business EBITDA increased 0.8% YoY to ₹127 Cr, with margin at 14.4%. Acquired group revenue run rate improved to €61M in Q4 from €47M in Q3.
Q4 FY26 shows revenue recovery driven by global key accounts and demand in Europe/India, with easing tariffs. Integration of Heubach is progressing, and management expects significant EBITDA growth from the acquired group over 3-4 years, despite current market challenges. The profitability turnaround plan is underway.
Global Key Accounts
Increased purchases from Global Key Accounts (GKAs) as the de-stocking trend subsided.
Regional Demand Recovery
Demand recovery in key regions like Europe and India.
North America Sales
Tariffs situation eased and supported North America region sales.
Value Capture Initiatives
Value capture initiatives across manufacturing, procurement, and org transformation are on track.
Customer Trust & Destocking
Customer trust is rebuilt and the destocking situation on legacy Heubach products is easing, with global accounts buying more.
Integration Progress
Integration (SAP, GCC, One Culture) is well progressing and One Sudarshan is further solidifying.
Value Capture Benefits
Work on value capture will help in profit and working capital improvements.
Geopolitical Uncertainty
Cautiously navigating a challenging market environment driven by geopolitical uncertainty.
Logistics Challenges
Geopolitical uncertainty resulting in logistics challenges.
Rising Raw Material Costs
Challenging market environment driven by rising RM cost.
Customer Purchasing Behavior
Customer’s cautionary purchasing behavior.
Economic & Market Conditions
Exposure to changes in general economic conditions, market, foreign currency and other risks.
Regulatory & Policy Changes
Changes in government policies/regulations, tax regimes as also technological changes.
Geopolitical & Supply Chain Risks
Geopolitical uncertainty resulting in logistics challenges and rising RM cost.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is relevant for overall growth and seasonal trends in the pigment business. QoQ is crucial to assess sequential momentum, demand recovery, and the impact of integration efforts, especially given the 'de-stocking trend subsided' and 'demand recovery' comments.
Consolidated Revenue from Operations
Q4 FY26: ₹2,790 Cr (6.6% YoY, ~36% QoQ)
Consolidated Business EBITDA %
Q4 FY26: 14.4% (-0.9pp YoY, +2.4pp QoQ)
Net Debt
FY26: ₹755 Cr (reduced from ₹934 Cr in Dec'25)
Net Working Capital as % to Sales
FY26: 25.9%
Acquired Group EBITDA Target
Expect to achieve EBITDA of €90-100 Mn for the Acquired Group over 3-4 years (FY28/29), driven by synergies, value capture initiatives and sales growth.
FY27 Acquired Group Projection
FY27 projection for Acquired Group: Sales ~€700 Mn, EBITDA ~€35 Mn.
Future Growth Acceleration
Closing the year with strong performance momentum while laying the groundwork for future growth acceleration.
Improved Path to Profitability
Entering FY27 with a stronger platform, clearer execution agenda, and improved path to sustainable profitability.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Acquired Group EBITDA | €19 Mn (FY26) | €35 Mn (FY27 projection) and €90-100 Mn (FY28/29 target) |
| Net Debt | ₹755 Cr (Mar'26) | Continued reduction and improved cash conversion |
| SAP Integration | Well underway | Fully harmonized system landscape by Dec 26 |
| Value Capture Plan | On track | Tangible profit and working capital improvements |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
48Neutrallabel neutral
Technical chart
SUDARSCHEMdaily · 5Y-15.1%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 47. Wait for confirmation.
- SMA20 rising (~2.2% over last month) — short-term momentum positive.
- RSI(14) at 47 — sideways, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 21% off 52W high · 23% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 7.5%.
- Cash flow contributes 8/10 to the score.
- Growth contributes 7/25 to the score.
Main drags
- Fair-value margin of safety is negative at -22948.2%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 5/30; verify the latest quarterly trend.
Cyclical valuation: normalized earnings, not just trailing PE
Cyclical companies can look cheapest near peak profits, so IndiaPulse flags value-trap risk separately.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Weak Trust: Claim history is still being built. It ranks around the 11th percentile of the scored universe and 9th percentile within Industrials. Main check: financial discipline is weak at 28/100.
Mixed Trust Lite: Promoter pledge is zero. Key concern: Promoter holding fell 8.2%.
Management or financial behaviour needs caution. Demand stronger valuation compensation.
overall median 67 · Industrials: 9th pctile, median 68 · Micro: 8th pctile, median 71
0 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Weak Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸9 years of positive FCF.
- ▸8/8 recent quarters had positive YoY revenue growth.
Trust risks
- ▸Promoter holding fell 8.2%.
- ▸5 recent quarters had PAT decline worse than 25% YoY.
- ▸Promoter holding is only 8.2%.
- ▸ROCE is low at 6%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 400.00
- P/B
- 1.97
- EV/EBITDA
- 9.89
- Market Cap
- 6796.00Cr
Profitability
- ROE
- 0.49%
- ROCE
- 5.51%
- ROA
- 0.42%
- Dividend Y
- 0.52%
Growth (CAGR)
- Revenue 5Y
- 39.00%
- EPS 5Y
- -35.00%
- Revenue 3Y
- 62.00%
- EPS 3Y
- -28.00%
Balance Sheet
- Debt/Equity
- 0.72
- Interest Coverage
- 3.58×
- Altman Z
- 2.48
- Book Value
- 439.00
Cash Flow
- FCF Yield
- 7.49%
- FCF Positive Y
- 9/5
- OCF
- 344.00 Cr
- EPS TTM
- 2.84
Shareholding
- Promoter Hold
- 8.20%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 16%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.