Ishan Dyes and Chemicals Ltd has formally submitted a proposal to A-1 Limited to become an exclusive dealer for sulphur-based industrial products. The company aims to leverage its expanding market presence and distribution network across India to secure the dealership. This strategic move is expected to enhance revenue visibility and market share in the sulphur-based chemicals sector.

The proposed product portfolio includes Sulphuric Acid 98%, Sulphuric Acid 70%, Oleum 23%, Oleum 65%, Chloro Sulphonic Acid, Sulphur Dioxide, and Sulphur Trioxide. ishan dyes & chemicals has maintained a strong business relationship with A-1 Limited, having already supplied materials aggregating to approximately ₹40 Crores since February 2026.

The proposal was submitted in view of the company's extensive distribution network, established customer base, and strong logistics capabilities. If the exclusivity is granted, it may lead to incremental revenue growth, improved margins through scale efficiencies, and strengthened customer retention. The company estimates a potential annualized business opportunity based on current procurement levels, subject to market conditions, pricing, and final commercial terms.

It is clarified that this communication is currently in the nature of a request or proposal. No binding agreement or definitive arrangement has been executed as of the date of this disclosure. Further developments will be disclosed in accordance with applicable regulations.

Proposed Product Portfolio

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE561M01018/32f2adde4f8b4b85.pdf

Ishan Dyes & Chemicals Limited reported a standalone net profit of ₹146.49 lakh for the quarter ended March 31, 2026, reversing the loss of ₹116.20 lakh recorded in the corresponding quarter of the previous year. However, for the full financial year ended March 31, 2026, the company posted a net loss of ₹710.85 lakh, a significant decline from the net profit of ₹108.50 lakh in FY25. The financial results were approved by the Board of Directors on May 28, 2026.

Financial Performance

Revenue from operations for the quarter stood at ₹3,175.53 lakh, a substantial increase from ₹1,673.11 lakh in the prior year quarter. For the full year, revenue from operations decreased to ₹7,347.13 lakh from ₹10,146.96 lakh in FY25. Total income for the year was ₹7,663.63 lakh, down from ₹10,446.85 lakh in the previous year.

The company’s total expenses for FY26 were ₹8,159.83 lakh, compared to ₹10,234.97 lakh in the preceding year. Profit before tax for the quarter was ₹236.27 lakh, whereas the full year resulted in a loss before tax of ₹496.20 lakh. Basic earnings per share (EPS) for the quarter was ₹0.56, while the annual EPS was a loss of ₹3.00.

Audit Qualifications

Statutory Auditors M/s A R Sulakhe & Co issued a qualified opinion on the standalone financial results. The auditors identified two material qualifications. First, the company advanced a loan of ₹1,460.22 lakh to a related party, Cluster Enviro Private Limited. The auditors noted that the related party has negative net worth and no active business due to legal issues. Consequently, the auditors stated that a provision of ₹1,460.22 lakh is required under Ind AS 109. Had this provision been made, the net loss for the year would have been higher by ₹1,460.22 lakh.

Second, the company valued certain inventories (finished goods) at Net Realisable Value (NRV) amounting to ₹2,759.49 lakh, which exceeded their cost. The auditors stated this is not in conformity with Ind AS 2, which requires measurement at the lower of cost and NRV. The auditors opined that the inventory value should be reduced by ₹284.78 lakh, which would have increased the net loss for the year by ₹284.78 lakh.

Corporate Governance

The Board appointed M/s. H D Panchal & Co., Chartered Accountants, as the Internal Auditor for the financial year ending March 31, 2027. The appointment was based on the recommendation of the Audit Committee. The company stated that the internal auditor is not related to any of the directors of the company.