News Earnings Sudarshan Colorants Reports Q3FY26 Net Loss of ₹200 Lakhs, Appoints New Independent DirectorSudarshan Colorants Reports Q3FY26 Net Loss of ₹200 Lakhs, Appoints New Independent Director
Sudarshan Colorants India Limited reported Q3FY26 net loss of ₹200 lakhs versus profit of ₹1,722 lakhs in Q3FY25, primarily due to exceptional items worth ₹1,280 lakhs from new Labour Codes implementation. Revenue declined 17.5% to ₹17,567 lakhs year-on-year. Nine-month performance showed net profit of ₹3,138 lakhs, down from ₹4,079 lakhs previously. The Board appointed Mrs. Sudha Navandar as Independent Director and noted CFO Mr. Jugal Sahu's resignation, who continues during notice period.
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Sudarshan Colorants India Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, showing mixed performance with quarterly losses offset by nine-month profitability. The company also made significant board-level appointments and noted key management changes during its board meeting held on February 03, 2026.
Financial Performance Overview
The company's Q3FY26 performance reflected challenging market conditions with revenue contraction and exceptional charges impacting profitability. The nine-month performance demonstrated resilience despite quarterly setbacks.
| Financial Metric | Q3FY26 | Q3FY25 | Change | 9M FY26 | 9M FY25 | Change |
|---|---|---|---|---|---|---|
| Revenue from Operations | ₹17,567 lakhs | ₹21,298 lakhs | -17.5% | ₹56,953 lakhs | ₹60,478 lakhs | -5.8% |
| Total Income | ₹17,996 lakhs | ₹21,704 lakhs | -17.1% | ₹58,744 lakhs | ₹61,409 lakhs | -4.3% |
| Net Profit/(Loss) | ₹(200) lakhs | ₹1,722 lakhs | -111.6% | ₹3,138 lakhs | ₹4,079 lakhs | -23.1% |
| Earnings Per Share | ₹(0.87) | ₹7.46 | -111.7% | ₹13.60 | ₹17.67 | -23.0% |
Exceptional Items Impact
The company reported exceptional items of ₹1,280 lakhs during Q3FY26, primarily attributed to the implementation of new Labour Codes. The incremental impact arose from changes in wage definitions under the four new Labour Codes notified by the Government of India on November 21, 2025. This included gratuity impact of ₹1,089 lakhs and compensated absences of ₹191 lakhs, representing past service costs from regulatory changes.
For the nine-month period, total exceptional items stood at ₹1,330 lakhs compared to nil in the corresponding previous period. The company classified these as exceptional items due to their non-recurring and regulatory-driven nature.
Operational Metrics
The company's cost structure showed improvements in several areas despite revenue decline. Cost of materials consumed decreased to ₹7,115 lakhs in Q3FY26 from ₹9,517 lakhs in Q3FY25. Employee benefits expenses reduced to ₹1,702 lakhs from ₹1,979 lakhs year-on-year.
| Expense Category | Q3FY26 | Q3FY25 | Change |
|---|---|---|---|
| Cost of Materials Consumed | ₹7,115 lakhs | ₹9,517 lakhs | -25.2% |
| Employee Benefits | ₹1,702 lakhs | ₹1,979 lakhs | -14.0% |
| Other Expenses | ₹3,712 lakhs | ₹4,569 lakhs | -18.8% |
| Total Expenses | ₹16,981 lakhs | ₹19,380 lakhs | -12.4% |
Board Appointments and Management Changes
The Board of Directors approved significant organizational changes during the February 03, 2026 meeting. Mrs. Sudha Navandar was appointed as Non-Executive Independent Director for a five-year term, subject to shareholder approval.
| Appointment Details | Information |
|---|---|
| Name | Mrs. Sudha Navandar |
| DIN | 02804964 |
| Position | Non-Executive Independent Director |
| Term | Five years |
| Effective Date | February 03, 2026 |
| Qualification | Chartered Accountant, CPA (USA), Insolvency Professional |
Mrs. Navandar brings over thirty years of experience in audit and corporate consultancy, with expertise in Insolvency and Bankruptcy Code matters. She is a partner at M/s. Pravin R. Navandar & Co., Chartered Accountants.
CFO Resignation
The Board noted the resignation of Mr. Jugal Sahu as Chief Financial Officer, Key Managerial Personnel, and Senior Management Personnel. However, Mr. Sahu will continue serving during his notice period as per company policy, ensuring continuity in financial operations during the transition.
Corporate Developments
The company successfully completed its name change from Heubach Colorants India Limited to Sudarshan Colorants India Limited, effective December 12, 2025, following all regulatory approvals and shareholder consent through postal ballot on December 06, 2025.
The financial results received an unmodified conclusion from statutory auditors M S K A & Associates LLP in their limited review report. The company operates in a single business segment of "Colorants" and has no subsidiary, associate, or joint venture companies as of December 31, 2025.
