Asahi Songwon Colors Limited, a leading Indian manufacturer of pigments, colorants, and APIs, reported a mixed but improving performance for the quarter and year ended March 31, 2026, with strong quarterly profit growth offset by an annual revenue decline.

 

The company reported consolidated total revenue of Rs. 535.48 crore for FY26, down 4.78% year-on-year, while consolidated EBITDA stood at Rs. 56.53 crore, a decline of 6.12% over the previous year.

 

For the fourth quarter, however, performance strengthened sharply. Revenue rose to Rs. 144.05 crore, up 19.40% quarter-on-quarter, even though it was 5.70% lower year-on-year. 

 

EBITDA jumped to Rs. 23.02 crore, marking a 122.19% Qo-Q surge and a 30.20% YoY increase. EBITDA margin expanded significantly to 15.60%, compared with 8.58% in Q3FY26 and 11.53% in Q4FY25. Net profit came in at Rs. 10.82 crore, surging 378.05% quarter-on-quarter and 57.46% year-on-year.

 

For the full year FY26, net profit rose 5.48% year-on-year to Rs. 17.78 crore.

 

Segment-wise, the company reported Q4 revenue of Rs. 95.35 crore from Phthalocyanine, Rs. 20.86 crore from AZO, and Rs. 31.33 crore from APIs. For FY26, segment revenues stood at Rs. 354.63 crore, Rs. 74.55 crore, and Rs. 113.00 crore respectively.

 

Commenting on the performance, CEO & Executive Director Arjun G. Jaykrishna highlighted improved realizations and operational resilience amid volatile global conditions.

 

“Q4FY26 was a strong quarter for our phthalocyanine pigment business, with healthy growth in both revenues and profitability. While volume growth was modest, a significant portion of the improvement was driven by stronger realisations, supported by higher raw material prices amid ongoing geopolitical volatility. 

 

"Our planning during the global disruptions this quarter positioned us well to navigate the evolving supply environment and support profitability during the quarter.

 

"Also finally we saw some stronger demand as well through a broad based demand recovery. The operating environment continues to remain challenging with global disruptions and unstable and higher RM prices and also challenges in RM supply chain."

 

He added: "In this context, we have been working on a range of internal operational efficiencies that we believe will meaningfully strengthen our margin profile in the periods ahead more sustainably. 

 

"We remain committed to maintaining steady operations while driving profitability through operational discipline, and we are well-positioned to accelerate volume growth once the broader demand environment improves. The API business continued to operate in a challenging environment during the quarter.

 

"Elevated raw material and KSM prices, driven largely by ongoing geopolitical tensions, weighed on input costs, while Chinese competition added further pressure on margins. We were, however, able to pass on these cost increases to our customers, which supported profitability during the quarter, though with some moderation in volumes."

 

The company'sbAPI business, he said, has delivered consistent volumetric growth of approximately 18% CAGR over the last three years. The steep decline in realisations since acquisition has, however, limited the reflection of this growth in our revenues and financial performance. 

 

"Encouragingly, the three-year price erosion cycle has finally reversed, and this quarter we saw an improvement in selling prices contributing to a stronger performance. Our backward integration investments have played an important role in navigating this period, providing greater operational stability and supporting margins. 

 

"On the regulatory front, we are making meaningful progress towards achieving our CEP certification by the end of the current financial year, a milestone that will support both volume growth and access to more profitable business segments.”

 

Managing Director Gokul Jaykrishna said the Azo and API segments have reached key profitability milestones despite ongoing market pressure:

 

“In the Azo business, we have continued to grow steadily in volumetric terms despite a challenging operating environment. We are pleased to report that both the API and Azo businesses have achieved EBITDA positivity for the full year, reflecting the sustained efforts on sales growth and margin improvement across both segments. 

 

"We have also reached cash break-even level in these businesses, which marks another important step in the financial progression of these businesses. Through continued focus on operational efficiency and revenue growth, we expect both businesses to begin contributing meaningfully to overall profitability at a consolidated level over the coming years.”