Asahi Songwon Colors Limited has received a comprehensive rating reaffirmation from CARE Ratings Limited, with all bank facility ratings maintained at their current levels with positive outlook. The rating agency's decision reflects the company's strengthened operational performance and improved financial metrics during FY25.

Rating Details and Facility Breakdown

CARE Ratings has reaffirmed ratings across multiple facility categories, demonstrating confidence in the company's creditworthiness:

The positive outlook reflects CARE's expectation of higher cash flow generation from the company's Azo pigment business and API segments, which are expected to improve return indicators and debt coverage metrics.

Strong Operational Performance in FY25

Asahi Songwon Colors demonstrated significant improvement across all business segments during FY25. The company reported consolidated revenue growth of 32% with total operating income reaching ₹566 crore compared to ₹428 crore in FY24. This growth was driven by improved capacity utilization across three key segments: phthalocyanine pigments, azo pigments, and active pharmaceutical ingredients (APIs).

The phthalocyanine pigments segment saw capacity utilization increase to over 80% in FY25 from approximately 60% in FY24, supported by improved demand following inventory restocking across end-use sectors. The azo pigments segment achieved 64% capacity utilization in FY25, further improving to 76% in 9MFY26.

Financial Metrics Show Substantial Improvement

The company's profitability metrics registered remarkable improvement during FY25:

PBILDT margin improved substantially by 565 basis points to 10.56% in FY25, supported by improved operational efficiencies due to higher capacity utilization across segments. The company also achieved positive PAT margin of 2.98% in FY25 after reporting losses at PAT level in the previous year.

Business Diversification and Client Relationships

Asahi Songwon Colors maintains strong relationships with leading global colorant companies including DIC Corporation (Japan), Sun Chemical Corporation (USA), Clariant Chemicals India Limited, and BASF SA (Germany). Revenue from key clients accounted for approximately 46% of total sales in FY25 and 9MFY26, showing gradual diversification from the 70%-80% concentration in previous years.

The company has diversified its business profile through the acquisition of Atlas Lifesciences Private Limited, adding pharmaceutical API business to its portfolio. In FY25, the pigments segment contributed 82% of revenue while the API business contributed 18%. The API segment showed improvement supported by backward integration initiatives, with growth in sales volume despite moderation in realization.

Capital Structure and Liquidity Position

The company maintains a comfortable capital structure with overall gearing of 0.74x as of March 31, 2025, compared to 0.83x in the previous year. Debt coverage indicators improved with interest coverage of 3.63 times and total debt to PBILDT of 3.14 times in FY25. The company's liquidity position remained adequate with low utilization of working capital facilities, ranging from 11% to 35% during the 12 months ended December 2025.

Asahi Songwon Colors Limited has announced the appointment of a new Independent Director to strengthen its board governance structure. The specialty chemicals and pigments manufacturer made this disclosure in compliance with regulatory requirements on March 31, 2026.

Board Appointment Details

The Board of Directors approved the appointment of Mr. Rupesh Chandrakant Shah (DIN: 00277687) as an Additional Director, designated as a Non-Executive Independent Director. The decision was made based on the recommendation of the Nomination and Remuneration Committee during the board meeting held on March 31, 2026.

Director's Professional Background

Mr. Shah brings extensive industrial experience spanning over five decades, having been actively engaged in business leadership since 1975. His expertise covers both ceramic and food processing industries, with demonstrated capabilities in:

• Large-scale manufacturing operations management
• Quality and process systems strengthening
• Export market expansion and international business development
• Strategic oversight and operational excellence

His technical knowledge and global exposure have enabled organizations under his leadership to establish strong international presence, particularly valuable for the company's pigments and chemical sector operations.

Industry Leadership Positions

The newly appointed director has held several distinguished positions in reputed industry bodies, showcasing his commitment to industrial development:

• President: Ahmedabad Pottery Manufacturing Association
• Chairman: Indian Ceramic Society (Gujarat Chapter)
• Former Secretary and President: Gujarat Chamber of Commerce & Industry
• Honorary Member: Advisory Committee of Central Glass & Ceramic Research Institute

Regulatory Compliance

The appointment fulfills all regulatory requirements under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Mr. Shah has submitted the required declaration confirming he is not debarred from holding the office of Director pursuant to any SEBI Order or similar authority orders.

The board meeting commenced at 11:30 AM and concluded at 12:10 PM on March 31, 2026, with the company secretary Joseph Saji Varghese managing the compliance disclosures to both BSE and NSE.