Sudarshan Colorants Q1 FY27 Results (NSE: SUDARCOLOR)

5 Aug 2026 · Analysis by Alpha Inflection

Signal: Margin expansion

The read

The quarter shows a modest revenue recovery to ₹222.39 crore, +5.5% YoY, and PAT growth to ₹20.36 crore, +19.1% YoY, but the core trajectory is mixed: gross margin compressed 280bps to 39.5% as raw-material cost increased to approximately 60.5% of revenue, while 26.9% of PBT came from ₹7.33 crore of other income.

P&L walk

Standalone revenue was ₹222.39 crore, +5.5% YoY and +5.3% QoQ, but gross margin fell to 39.5%, -280bps YoY, as material costs rose faster than sales; PAT reached ₹20.36 crore, +19.1% YoY, helped by ₹7.33 crore of other income.

Key positives

• Revenue increased to ₹222.39 crore, +5.5% YoY and +5.3% QoQ, reversing the immediately prior-quarter decline.
• EBITDA increased to ₹32.92 crore from an implied ₹28.58 crore YoY, with EBITDA margin expanding to 14.8% from approximately 13.6%.
• Employee benefits expenses declined 19.1% YoY to ₹15.67 crore and other expenses increased only 2.8% YoY to ₹46.65 crore, supporting operating profit.
• EPS rose 19.2% YoY to ₹8.82, broadly tracking the 19.1% PAT increase.

Key concerns

• Gross margin compressed 280bps YoY to 39.5% as direct material costs increased to approximately 60.5% of revenue from 57.7%; with revenue growing, the company appears to have absorbed input-cost pressure and the filing does not disclose pricing-power evidence.
• Other income of ₹7.33 crore was 26.9% of PBT and grew 76.2% YoY, making the PAT increase less representative of recurring operating earnings.
• Three-year sales CAGR is -8.13% and three-year profit CAGR is -26.89%, so the current 5.5% revenue growth remains an early recovery signal rather than an established growth trend.

Earnings quality: includes non-operating other income

View original filing

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