Sudarshan Colorants Posts Strong Profit Recovery in Q1 FY27
The colorants maker reported a 19% YoY profit rise on steady revenue growth, with net profit margin expanding to 9.2%.
Sudarshan Colorants India delivered a robust Q1 FY27, with profit surging 55% sequentially. Revenue grew steadily, and profitability improved significantly from the previous quarter.
Sudarshan Colorants India has kicked off FY27 with a strong rebound in profitability. The company's first-quarter results show profit growth significantly outpacing a steady rise in revenue, marking a clear recovery from the volatility seen in recent quarters.
The latest quarter saw revenue of ₹222.39 crore, up 5.5% from the same period last year and 5.3% from the previous quarter. More impressively, profit after tax jumped 19.1% year-on-year to ₹20.36 crore, and surged 54.8% compared to Q4 FY26. This translated to a net profit margin of 9.2%, a notable improvement from 6.2% in the prior quarter and 8.1% a year ago.
A look at the recent trajectory shows the company is moving past a difficult patch.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 222.39YoY +5.5% | 211.10 | 210.72 |
| Profit (₹ Cr) | 20.36YoY +19% | 13.15 | 17.09 |
| Net Profit Margin (%) | 9.2YoY +14% | 6.2 | 8.1 |
The table highlights a return to consistent profitability after a loss in Q3 FY26. The trailing twelve-month (TTM) net profit margin stands at 6.0%, suggesting the latest quarter's performance is a positive step towards improving the company's earnings profile on a sustained basis.
Key Points
- The company maintains a robust balance sheet with zero debt and an exceptionally high interest coverage ratio of 321.9.
- Return on Equity (RoE) and Return on Capital Employed (RoCE) are remarkably strong at 71.4% and 93.1% respectively.
- The stock trades at a trailing P/E of 5.0, a significant discount to the industry average P/E of 41.9.
The focus now will be on whether Sudarshan Colorants can maintain this improved level of profitability through the rest of the fiscal year.
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· SUDARCOLOR
(BSE)
ISIN: INE492A01029
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