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.

Asahi Songwon Colors Limited, a leading manufacturer of pigments, colorants, and APIs in India, has released its financial results for the first quarter. The company reported a mixed performance with revenue growth but margin compression across its business segments.

Revenue Growth Amidst Challenges

The company posted consolidated revenue of ₹149.88 crores for Q1, marking an 11.62% year-on-year increase. However, this represents a slight decline of 1.88% compared to the previous quarter. The revenue breakdown across the company's three business segments was as follows:

Profitability Under Pressure

Despite the revenue growth, Asahi Songwon faced significant challenges in maintaining profitability:

• EBITDA declined to ₹12.00 crores, with margins compressing to 7.93% from 11.53% in the previous quarter and 10.75% in the same quarter last year.
• Net profit before exceptional items fell to ₹2.59 crores, representing a substantial 40.73% year-on-year decrease.

Segment Performance and Management Insights

Blue Business (Phthalocyanine Pigments)

The company's core Blue Business experienced subdued demand during the latter half of the quarter, impacting both sales and realizations. Gokul Jaykrishna, Joint Managing Director and CEO, commented on the performance, stating, "After a strong run in the previous quarters and a solid start to Q1, we saw a sharp decline in demand in the latter half of the quarter, impacting both sales and realisations, and consequently, profitability."

AZO Business

The AZO segment showed steady progress, with management expressing confidence in accelerating growth in the coming quarters.

API Business

The API segment faced challenges with declining product realizations despite higher volumes. Arjun G. Jaykrishna, Executive Director, noted, "Since acquiring Atlas, key product realisations have declined, resulting in a stagnant topline despite higher volumes versus previous years."

Outlook and Strategy

Management anticipates continued challenges in the second quarter but expects a recovery in the second half of the financial year. The company is focusing on operational efficiency and market responsiveness to capitalize on demand revival.

Gokul Jaykrishna expressed confidence in the company's future, stating, "We are confident of a strong recovery in the second half of the financial year, supported by our robust business fundamentals and continued engagement with key customers."

For the API business, management believes that realizations have bottomed out, and recent shutdowns by smaller players have improved the demand-supply balance, potentially supporting better realizations going forward.

As Asahi Songwon Colors navigates through these challenging market conditions, investors and industry observers will be keenly watching for signs of the anticipated recovery in the latter half of the fiscal year.