Asahi Songwon Colors accepts CEO resignation effective May 26

Asahi Songwon Colors Limited has accepted the resignation of Gokul Mrugesh Jaykrishna from the position of Chief Executive Officer (CEO) effective May 26, 2026. The resignation is attributed to future growth, leadership development, succession planning, and the long-term strategic objectives of the company. Despite stepping down as CEO, Jaykrishna retains his role as Managing Director and continues to be actively involved in the management and strategic affairs of the company.

The company submitted the disclosure to the stock exchanges pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing clarified that the resignation is limited to the office of CEO only, resulting in no change to Jaykrishna's position on the Board of Directors.

Succession Details

In a letter to the Board, Jaykrishna expressed satisfaction with the transition, noting that he is handing over the CEO role to his son, Arjun Jaikrishna. The incoming CEO is a 30-year-old chemical engineer trained at Northwestern University. Jaykrishna described the succession as ahead of schedule and expressed confidence in the new leadership's ability to drive the company toward higher Return on Capital Employed (ROCE) growth.

Regulatory Disclosures

The filing provided details regarding Jaykrishna's other directorships and committee memberships. He holds directorships in Asahi Songwon Colors Limited, Arvind Limited, and The Anup Engineering Limited. His committee memberships include the Audit Committee and Nomination and Remuneration Committee at Arvind Limited, and multiple committees at The Anup Engineering Limited, including the Audit, Nomination and Remuneration, Corporate Social Responsibility, and Stakeholders Relationship Committees.

Sl No.	Particulars	Information
1	Reason for Change	Resignation due to future growth, leadership development, succession planning and long-term strategic objectives
2	Date of Resignation	May 26, 2026
3	Brief Profile	Not Applicable
4	Disclosure of relationships	Not Applicable
5	Letter of Resignation	Enclosed herewith
6	Directorships	Asahi Songwon Colors Limited, Arvind Limited, The Anup Engineering Limited
7	Additional Information	Continues as Managing Director; no change in position on the Board of Directors

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.40%	+2.89%	+13.60%	-8.61%	-39.82%	-24.78%

Asahi Songwon Colors Limited reported a 57.46% year-on-year increase in net profit to ₹10.82 crore for the quarter ended March 31, 2026, driven by stronger realisations and operational efficiencies. Revenue from operations for Q4FY26 stood at ₹144.05 crore. For the full financial year FY26, the company recorded a net profit of ₹17.78 crore on revenue of ₹535.48 crore. The API and Azo businesses achieved EBITDA positivity for the full year, marking a significant milestone in their financial progression. Following the results, the company hosted an earnings conference call on June 01, 2026, the audio recording of which is now available on its website.

The company’s operating environment remained challenging due to geopolitical tensions impacting raw material prices and supply chains. However, the phthalocyanine pigment business saw healthy growth in profitability during Q4FY26, supported by higher realisations and the ability to pass on cost increases to customers. The API business delivered consistent volumetric growth of approximately 18% CAGR over the last three years, with the three-year price erosion cycle reversing during the quarter.

Financial Performance for Q4 and FY26

Particulars	Q4FY26 (₹ in Crore)	Q4FY25 (₹ in Crore)	YoY Change	FY26 (₹ in Crore)	FY25 (₹ in Crore)	YoY Change
Revenue from Operations	144.05	152.75	(5.70)%	535.48	562.36	(4.78)%
Total Income	147.54	153.37	(3.80)%	542.18	566.40	(4.28)%
EBITDA (Incl. Other Income)	23.02	17.68	30.20%	56.53	60.21	(6.12)%
Profit Before Tax	15.07	9.18	64.20%	25.56	24.98	2.35%
Net Profit	10.82	6.87	57.46%	17.78	16.86	5.48%
EPS (Basic)	9.22	6.48	42.28%	15.92	16.76	(5.01)%

Strategic and Operational Updates

The company has successfully commenced commercial production of API intermediates at its Chhatral site. Exports contributed 69% to the revenue in FY26. Management highlighted that both API and Azo businesses have reached cash break-even levels. The company is also progressing towards achieving CEP certification by the end of the current financial year, which is expected to support volume growth and access to more profitable segments.

Asahi Songwon Colors continues to focus on operational efficiencies to strengthen its margin profile. The company serves over 101 customers across 19 countries, leveraging its four manufacturing facilities. The Odhav plant is currently running at optimum capacity utilisation.

Management Commentary and Outlook

During the earnings conference call, Managing Director Mr. Gokul M. Jaykrishna announced his transition from the role of CEO, a position he held for eight years, while continuing as Managing Director. Mr. Arjun G. Jaykrishna, previously Executive Director, has assumed the role of Chief Executive Officer effective immediately. The leadership change aims to drive the company's next phase of growth with a focus on increasing fixed asset turnover and operational efficiencies.

Management expressed confidence in sustaining the Q4FY26 performance into Q1FY27. The company targets an EBITDA margin of approximately 13% for the Azo business and 15% to 16% for the API business in the long term. For the standalone Blue pigment business, the goal is to achieve revenue of around ₹400 crore with an EBITDA margin of 13% to 14% in FY27. The company aims to reach a consolidated revenue scale of ₹1000 crore over the next few years, supported by internal accruals and strategic improvements.