Sudarshan Chemical Industries Limited has announced two important initiatives for its shareholders through newspaper publications on April 30, 2026. The company submitted copies of advertisements published in Financial Express (all editions) and Loksatta (Pune edition) to both BSE and NSE, informing stakeholders about regulatory compliance measures and shareholder services.

Second 100 Days Campaign - 'Saksham Niveshak'

The Investor Education and Protection Fund Authority, under the Ministry of Corporate Affairs, has launched the Second 100 Days Campaign titled 'Saksham Niveshak' with specific objectives for shareholder benefit.

Shareholders are requested to update their KYC details including bank account information with their respective Depository Participants for electronic holdings, and with the company or MUFG Intime India Private Limited (Registrar and Share Transfer Agent) for physical holdings. The KYC updation forms can be downloaded from the RTA website at https://web.in.mpms.mufg.com/KYC-downloads.html .

Special Window for Physical Securities Transfer

Pursuant to SEBI Circular No. HO/38/13/11(2)2026-MIRSD-POD/II/3750/2026 dated January 30, 2026, another special facility has been introduced for shareholders holding physical securities.

This special window accommodates transfer requests that were previously submitted but rejected, returned, or remained unattended due to document deficiencies or other issues. Shareholders must possess original share certificates to avail this opportunity.

Process and Contact Information

Shareholders wishing to utilize these services can contact the company's Registrar and Share Transfer Agent, MUFG Intime India Private Limited, through multiple channels:

• Email: pune@in.mpms.mufg.com
• Office Address: Block no. 202, 2nd Floor, Akshay Complex, Near Ganesh Temple, Off Dhole Patil Road, Pune - 411001, Maharashtra, India
• Company Contact: shares@sudarshan.com

Important Conditions and Restrictions

The transferred securities will be mandatorily credited in demat mode only after all documents are verified by the RTA. These securities will remain under lock-in for one year from the transfer registration date, during which they cannot be transferred, lien marked, or pledged. All transfers are subject to compliance with conditions mentioned in the SEBI circular.

The company has also uploaded these advertisements on its official website at www.sudarshan.com for shareholder reference and transparency.

Sudarshan Chemical Industries Limited has received a reaffirmation of its 'Crisil A1+' rating on its Rs. 50 crore commercial paper programme from Crisil, an S&P Global Company. The rating agency announced this decision on April 16, 2026, maintaining its positive assessment of the company's short-term creditworthiness.

Rating Rationale and Key Strengths

The reaffirmation reflects Crisil's expectation that Sudarshan Chemical will maintain a sizeable corpus of unencumbered liquidity of Rs. 750-850 crore over the medium term. This liquidity buffer is considered crucial during the turnaround phase of the recently acquired Heubach group, ensuring timely availability of funds for business operations and debt repayment obligations.

The rating continues to reflect several key strengths including the extensive experience of promoters in the pigment industry, established market position of both SCIL and Heubach, diversified product range and end-user industry profile, strong distribution network with marquee clientele, and average financial risk profile supported by healthy financial flexibility.

Heubach Acquisition Impact

On March 03, 2025, SCIL completed the acquisition of Heubach group for a purchase consideration of €151.9 million (approximately Rs. 1,389.9 crore). The acquisition was funded through debt of around Rs. 1,600 crore (€175 million) and equity raise of around Rs. 1,000 crore through QIP, preferential equity issuance, and convertible warrants.

Post-acquisition, Sudarshan Europe B.V., a wholly-owned subsidiary of SCIL, has indirectly acquired 54.36% shareholding in Heubach Colorants India Limited, which is listed on BSE and NSE. The combined entity now operates 19 manufacturing sites across 11 countries, making SCIL the second-largest pigments player globally behind DIC.

Financial Performance and Challenges

The acquired Heubach group has shown sequential revenue decline over three quarters of fiscal 2026, dropping from Rs. 1,882 crore in Q1 to Rs. 1,479 crore in Q3. This decline is attributed to demand softness in Europe and North America, coupled with inventory destocking by key customers.

Operating margins present a mixed picture. While the legacy business maintained stable margins at 12.8% in the first nine months of fiscal 2026 compared to 12.7% in the corresponding period of fiscal 2025, the acquired group's margins deteriorated significantly from 4.1% in Q1 FY26 to losses in Q3 FY26.

Liquidity Position and Outlook

Crisil has assessed the company's liquidity as 'Strong', highlighting the unencumbered liquid surplus of Rs. 1,097 crore as of December 31, 2025. The rating agency expects annual net cash accrual of Rs. 250-350 crore along with cash surplus of Rs. 750-850 crore to be sufficient for meeting yearly debt repayment obligations of Rs. 120-300 crore and annual capital expenditure of Rs. 150-250 crore over the next two years.

The company also maintains access to fund-based limits of Rs. 515 crore with an average 12-month drawing power of Rs. 333 crore, which has been utilized to 69% on average during the past 12 months through January 2026.

Strategic Transformation

The Heubach acquisition has significantly transformed SCIL's global footprint and product portfolio. The company now offers approximately 1,600+ products across 60+ brands, with market reach extending to around 120 countries from the previous 85 countries. The acquisition provides access to coatings, plastics, and inks segments in overseas markets with an established customer base.

While the rating reaffirmation indicates confidence in the company's fundamental strengths and liquidity position, Crisil notes that the successful execution of the turnaround strategy for the Heubach operations will be critical for maintaining the current credit risk profile and achieving improved profitability metrics over the medium term.