Asahi Songwon Colors, a leading Indian manufacturer of pigments, colorants and APIs, reported a mixed performance for the third quarter and nine months ended December 31, 2025, as global demand pressures and pricing corrections weighed on profitability.
For Q3FY26, the company posted consolidated revenue of Rs. 120.75 crore, down 1.47% quarter-on-quarter and 10.79% year-on-year. EBITDA stood at Rs. 10.36 crore, declining 7.04% sequentially and 23.32% year-on-year, while the EBITDA margin narrowed to 8.58%, compared with 9.09% in Q2FY26 and 9.98% in Q3FY25. Net profit rose marginally to Rs. 2.26 crore, up 7.96% QoQ, though down 1.63% YoY.
For the nine months ended December 31, 2025, consolidated revenue came in at Rs. 394.64 crore, a 4.45% year-on-year decline. EBITDA fell 21.22% YoY to Rs. 33.51 crore, with margins contracting to 8.49% from 10.30% in the corresponding period last year. Net profit declined sharply by 30.32% YoY to Rs. 6.96 crore.
During Q3FY26, the Phthalocyanine segment contributed Rs. 75.55 crore, followed by API revenues of Rs. 27.62 crore and AZO pigments at Rs. 17.58 crore.
For the nine-month period, Phthalocyanine pigments remained the largest contributor at Rs. 259.28 crore, while API revenues stood at Rs. 81.67 crore and AZO pigments at Rs. 53.68 crore.
Commenting on the Azo and API businesses, Gokul Jaykrishna, Managing Director, said: "In the Azo pigments business, in line with our stated guidance, the Company delivered a profit after tax positive quarter. While the pace of growth continues to remain measured given the prevailing operating conditions, we are witnessing steady progress in volumes and capacity utilisation.
"We have strengthened the Azo plant team by onboarding experienced professionals. These initiatives are expected to support sustained growth and improving profitability in the coming quarters. The API business continues to face challenges. Since the acquisition, we have successfully scaled up volumes and driven operational efficiencies."
However, he said, the sharp correction in realisations across key products has weighed on the financial performance of the segment. During this period, we remained focused on executing our strategic priorities, including regulatory approvals for higher value markets.
"We have already submitted applications to the European authorities for the Certificate of Suitability and remain confident of receiving the same within the next financial year. These approvals are expected to unlock access to superior quality business opportunities and support meaningful improvement in the profitability of the API segment over the coming years.”
On the Blue business, Arjun G Jaykrishna, Executive Director, said: "The operating environment for the Blue business remained challenging during the quarter. The indirect impact of the United States trade tariffs, along with the continued slowdown across Europe, resulted in muted demand and lower capacity utilisation in the segment.
"In this environment, we remained focused on strengthening operational resilience, improving efficiencies, and maintaining cost discipline to sustain performance. While near term demand conditions continue to remain subdued, we expect a gradual improvement in the Blue business in the coming quarter. As clarity emerges around global trade policies and customer inventories normalise, we remain confident of steady recovery in volumes and profitability over the medium term.”
Despite near-term pressures, the company said it remains focused on operational efficiencies, regulatory approvals and capacity utilisation improvements to drive recovery across segments in the coming quarters.
