Sudarshan Chem. Q4 FY26 Results (NSE: SUDARSCHEM)
Signal: Margin pressure
The read
Standalone Q4FY26 revenue grew 33.1% YoY but OPM contracted 370bps to 10.3% as COGS ratio increased 260bps; PAT of ₹120.4 Cr was more than 5x the prior year's ₹22.5 Cr, mainly due to an exceptional income turnaround (₹5.4 Cr gain vs ₹26.5 Cr expense last year). For FY26, standalone PAT doubled to ₹290.3 Cr despite a 5.4% decline in full-year revenue, supported by other income of ₹90.4 Cr (including dividend income of ₹43.4 Cr). Management recommended a ₹5/share final dividend. The Heubach acquisition and integration progress remain key for future group-level performance.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹732.7 Cr | +33.1% | +4.1% |
| EBIT | ₹75.4 Cr | +335.8% | |
| Net profit | ₹120.4 Cr | +435.1% | |
| EPS | ₹15.3 | +427.6% | |
| EBIT margin | 10.3% |
P&L walk
CONSOLIDATED RESULTS NOT PROVIDED IN THIS FILING — standalone-only disclosed; see segment note 3 which defers segment disclosure to consolidated results
Key positives
- Standalone Q4 revenue +33.1% YoY to ₹732.7 Cr — largest quarterly standalone top-line in the series
- Full-year PAT doubled to ₹290.3 Cr (+106% YoY) despite revenue decline
- Operating cash flow jumped to ₹180 Cr (FY26) vs ₹66.4 Cr (FY25) — a +171% improvement
- Board recommended final dividend of ₹5/share (250%) vs prior year ₹2.5/share (125%)
- Exceptional item reversed from loss of ₹26.5 Cr in Q4FY25 to income of ₹5.4 Cr
Key concerns
- OPM compressed 370bps YoY to 10.3% — raw material cost ratio rose 260bps YoY
- Full-year standalone revenue -5.4% — core business topline declining despite Q4 recovery
- Inventory increased ₹17.3 Cr in FY26 — effectiveness of Heubach integration working capital reduction unproven
- FY26 PAT growth heavily aided by other income (₹90.4 Cr +196% YoY) and a tax credit; without these, profit growth narrower
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