Sudarshan Chemical Industries Limited has announced that CRISIL Ratings has reaffirmed its rating of ‘Crisil A1+’ on the company’s Rs. 50 Crore Commercial Paper program. This reaffirmation, effective September 11, 2026, signifies the agency’s continued confidence in the company’s short-term creditworthiness and its ability to meet its financial obligations.
Sudarshan Chemical Industries Commercial Paper Rating Reaffirmed
Sudarshan Chemical Industries Limited (SCIL) has received a crucial credit rating update for its short-term debt instruments. CRISIL Ratings has announced the reaffirmation of its rating at ‘Crisil A1+’ on the company’s outstanding Rs. 50 Crore Commercial Paper program. This rating action was communicated on September 11, 2026.
Rating Rationale and Company Outlook
The reaffirmation of the ‘Crisil A1+’ rating reflects CRISIL’s expectation that SCIL will maintain substantial unencumbered liquidity, estimated at around Rs. 750-800 crore over the medium term. This liquidity is deemed sufficient to support business operations and debt servicing requirements, especially during the ongoing integration of the acquired Heubach business. The rating also considers the extensive experience of SCIL’s promoters in the pigment industry and the company’s established market position, along with that of Heubach.
Furthermore, the rating factors in SCIL’s diversified product range, strong distribution network, marquee clientele, and a generally healthy financial risk profile supported by robust financial flexibility. These strengths are balanced against significant working capital requirements and exposure to price volatility in commodity markets. CRISIL also noted SCIL’s ongoing divestment of VP4 Frankfurt GmbH, expected to sharpen focus on its core pigments business and aid in deleveraging.
Consolidated revenue for SCIL showed an increase of 5.4% year-on-year to Rs. 2,642 crore in the first quarter of fiscal 2027. The company’s reported EBITDA margin also improved to 10.1% in the same period. The financial risk profile remains adequate, with adjusted net worth of Rs. 2,506 crore as of March 31, 2026, against total debt of Rs. 2,473 crore.
The company’s liquidity is strong, with unencumbered liquid surplus of Rs. 1,401 crore as of March 31, 2026. Expected annual net cash accruals are projected to adequately cover scheduled debt repayments and capital expenditure over the fiscal years 2027-2029.
Source: BSE
