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Slower-than-expected demand recovery
View Risks →Sudarshan Chemical Industries Ltd — Q3 FY26
Sudarshan Chemical reported a tough Q3 FY26, with the acquired Heubach/Clariant business posting a €38 million EBITDA loss, driven by customer destocking and weak demand in Europe and North America.
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Sudarshan Chemical reported a tough Q3 FY26, with the acquired Heubach/Clariant business posting a €38 million EBITDA loss, driven by customer destocking and weak demand in Europe and North America. Legacy Sudarshan revenues were flattish. Management highlighted that customer trust has been rebuilt and buying has resumed in January/February, expecting a €9-10 million business EBITDA in Q4. However, a planned inventory reduction of €30-40 million over three quarters will temporarily depress reported EBITDA by €9-12 million due to overhead absorption. The long-term target of €90-100 million EBITDA remains intact, but near-term risks include slower-than-expected demand recovery and execution challenges in cost synergies.
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Acquired Group EBITDA Loss
€38M
N/A
Acquired group reported a loss of €38 million in Q3, compared to a profit of €78 million in Q1.
Cost Savings Realized
₹40 Cr
N/A
₹40 crore of cost savings realized in Q3 vs Q1, with a healthy pipeline ahead.
Inventory Reduction Target
€30-40M
N/A
Management targets reducing inventory by €30-40 million over the next three quarters.
Employee Cost Reduction
€25M
N/A
Employee costs reduced by €25 million in Q3 vs Q1, part of fixed cost optimization.
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Guidance and risk preview
Management expects business EBITDA (excluding inventory impact) of €9-10 million in Q4 FY26, driven by demand recovery and cost actions.
Customer destocking may persist longer than anticipated, delaying volume recovery and impacting Q4 guidance.
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