Asahi Songwon Colors Limited , a leading manufacturer of pigments, colorants, and APIs, has reported a decline in its financial performance for the second quarter and first half of fiscal year 2026, citing challenging market conditions and subdued demand in key markets.

Q2 FY26 Performance

For the quarter ended September 30, 2025, Asahi Songwon reported:

• Consolidated revenue of ₹120.90 crore, down 19.34% quarter-on-quarter and 14.62% year-on-year
• EBITDA of ₹11.14 crore, with margins at 9.09%
• Net profit of ₹2.10 crore, a 36.49% decrease year-on-year

H1 FY26 Results

For the half-year period:

• Consolidated revenue stood at ₹270.78 crore, a slight decline of 1.85% year-on-year
• EBITDA was ₹23.15 crore
• Net profit reached ₹4.69 crore

Segment-wise Performance

The company operates across three segments:

Challenges in Key Markets

Gokul Jaykrishna, Joint Managing Director and CEO, highlighted the challenges faced by the API business, noting a sharp correction in realizations by nearly 40%. However, he expressed optimism about gradual improvement in the coming quarters.

Arjun G. Jaykrishna, Executive Director, pointed out two key factors affecting the blue business:

1. Declined shipments to the United States following tariff uncertainties
2. Persistent slowdown in Europe

These factors have led to subdued demand and lower capacity utilization in the blue segment.

Positive Developments

Despite the overall decline, the company reported some positive developments:

• Strong cash flow generation from new business verticals (API and Azo pigments)
• Operating cash flows more than doubled to ₹36.46 crore during September 2025
• Over ₹19 crore contributed by API and Azo segments to cash flows
• Accelerated debt repayment and strengthened balance sheet
• Encouraging progress in the Azo business with improving capacity utilization

Future Outlook

The management expects:

• Gradual improvement in API business realization
• The Azo business to achieve PAT-positive performance from the next quarter
• Improvement in blue segment revenues and profitability from the last quarter of the current financial year

Asahi Songwon Colors has strengthened its team in the Azo segment and ramped up R&D initiatives for new product development. Ongoing process improvements and efficiency measures are expected to enhance performance and drive sustainable profitability in this segment.

The company continues to focus on diversifying its product portfolio and expanding its global footprint, with exports contributing 64% of revenue in H1FY26. Asahi Songwon Colors serves over 101 customers across 19 countries, leveraging its four manufacturing facilities in Gujarat, India.

Asahi Songwon Colors Limited , a leading manufacturer of pigments and Active Pharmaceutical Ingredients (API), has announced its financial results for the second quarter and half-year ended September 30, 2025, along with key board decisions.

Financial Performance

For Q2 FY26, Asahi Songwon reported consolidated revenue from operations of Rs. 12,089.83 lakhs, compared to Rs. 14,987.78 lakhs in the previous quarter. The company's consolidated profit after tax attributable to owners stood at Rs. 225.33 lakhs, down from Rs. 316.31 lakhs in Q1 FY26.

For the half-year ended September 30, 2025, the company's consolidated revenue from operations reached Rs. 27,077.62 lakhs, with a profit after tax attributable to owners of Rs. 541.64 lakhs.

Segment Performance

Asahi Songwon operates in two main segments:

1. Pigments: This segment generated revenue of Rs. 7,158.97 lakhs in Q2 FY26, contributing significantly to the company's total revenue.
2. API (Active Pharmaceutical Ingredients): The API segment reported revenue of Rs. 5,096.04 lakhs for the quarter.

Board Decisions

The company's Board of Directors, in a meeting held on November 11, 2025, made several key decisions:

1. Financial Results Approval: The Board approved the Standalone and Consolidated Unaudited Financial Results for Q2 and H1 FY26.

2. New Independent Director: Mr. Maulik Deepak Mehta (DIN: 05227290) has been appointed as an Additional Director, designated as a Non-Executive Independent Director. His term is set for five consecutive years from November 11, 2025, to November 10, 2030, subject to shareholder approval.

3. Change in Director Designation: Mr. Samveg Arvindbhai Lalbhai's (DIN: 00009278) designation has been changed from Non-Executive Independent Director to Non-Executive Non-Independent Director, effective November 11, 2025.

Management Commentary

The company has scheduled an earnings conference call on November 13, 2025, at 11:00 AM IST, where the management will discuss the Q2 and H1 FY26 performance in detail. Key participants will include Executive Directors Mr. Arjun G. Jaykrishna and Mr. Mitesh Patel, along with Joint Managing Director & CEO Mr. Gokul M. Jaykrishna.

Outlook

The company has experienced a decline in revenue and profit compared to the previous quarter. However, the diversification into both pigments and API segments may provide stability. The appointment of Mr. Maulik Deepak Mehta, with his extensive experience in business development and strategy, could bring fresh perspectives to the company's growth plans.

Investors and analysts will likely look forward to the upcoming conference call for more insights into the company's performance and future strategies, particularly in light of the current economic environment and industry trends.