1. At a Glance
Old company (1956). New problems (2025–26).
Sudarshan Colorants (ex-Heubach, ex-Clariant) is a specialty chemicals player selling pigments across paints, plastics, coatings, inks, etc. Business is real. Demand is real. But the latest quarter? Not pretty.
Q3 FY26 highlights:
Revenue: ₹175.67 Cr (↓ YoY, ↓ QoQ)
PAT: -₹2.00 Cr (vs ₹17.22 Cr YoY)
EPS: -₹0.87
OPM: 6.43% (down sharply)
And then the real masala:
Fire loss: ₹10.32 CrTotal exceptional items: ₹12.80 CrCFO resigned (March 2026) GST demand: ₹62 lakh (new) + ₹3.87 Cr (old dispute)Name change ongoing again
Meanwhile:
Promoter holding jumps to 70.26%
Debt low: ₹24 Cr
EV/EBITDA: 5.35
Stock down ~47% in 1 year
Translation: Business exists. Balance sheet decent. But execution + governance + one-off hits = chaos.
2. Introduction
This is not a dying company.
This is a messy quarter inside a stable-but-slow business .
For years:
Sales growth: basically flat (5Y ~1.7%)
Profit growth: modest
ROE: meh (~9–12%)
So already not a superstar.
Now suddenly:
Profit goes negative
Exceptional losses show up
CFO leaves
Tax issues appear
Company changes name again
That combination is what makes investors nervous.
Key question:
3. Business Model – What Do They Actually Do?
They sell colorants (pigments + dyes) .
Used in:
Paints (automotive + decorative)
Plastics (packaging, cables, footwear)
Printing (inkjet, packaging)
Construction materials
Specialty applications (leather, latex, agro, etc.)
Revenue mix:
~95% Plastics & Coatings ~5% Specialty Chemicals
Geography:
Domestic + exports (~36%)
Simple model:
Manufacture pigments → sell to industrial clients → repeat
Not fancy. Not scalable like tech. But steady… when things don’t go wrong.
4. Financials Overview (Quarterly)
Source table Metric Q3 FY26 Q3 FY25 Q2 FY26 YoY % QoQ % Revenue ₹175.67 Cr ₹212.98 Cr ₹183.14 Cr -17.5% -4.1% EBITDA ₹11.30 Cr ₹24.94 Cr
