Chembond Material Technologies declares FY26 dividend of ₹2 per share

1 min read     Updated on 09 Jun 2026, 03:20 AM
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Naman SScanX News Team
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Chembond Material Technologies has announced a final dividend of ₹2 per equity share for FY26, subject to approval at the 51st AGM on July 17, 2026. The company detailed TDS rates under the Income-tax Act, 2025, requiring shareholders to submit forms like Form 121 or Form 41 by June 26, 2026, to avoid higher deductions. Non-residents must provide specific documents for treaty benefits, while physical shareholders must ensure KYC compliance to receive payments.

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Chembond Material Technologies Limited has declared a final dividend of ₹2 per equity share of ₹5 each for the financial year ended March 31, 2026. The dividend, subject to shareholder approval at the 51st Annual General Meeting scheduled for Friday, July 17, 2026, follows the Board's decision on May 15, 2026. The company has communicated the tax deduction at source (TDS) implications to shareholders under the provisions of the Income-tax Act, 2025, effective from April 1, 2026.

The company will deduct TDS at prescribed rates depending on the shareholder's residential status and documentation. Shareholders must ensure their Permanent Account Number (PAN) is valid and linked with Aadhaar; a higher rate of 20% applies if the PAN is invalid or inoperative. To claim lower or nil tax deduction, eligible shareholders must submit specific forms, such as Form 121 for resident individuals or Form 41 for non-residents, along with necessary declarations by Friday, June 26, 2026.

TDS Rates for Resident Shareholders

TDS Rate Category of Shareholder Required Documentation
Nil Dividend up to ₹10,000 in FY NA
10% Resident with valid PAN Update/Verify PAN and residential status with depositories or RTA
20% Resident without valid PAN NA
Nil Form 121 submitted Form 121 (if conditions met)
As per order Lower tax certificate obtained Order under Section 395

TDS Rates for Non-Resident Shareholders

TDS Rate Category of Shareholder Required Documentation
20% (plus surcharge and cess) or Tax Treaty Rate Non-resident shareholders Tax Residency Certificate, Form 41, and self-declaration
As per order Lower tax certificate obtained Order under Section 395

The company clarified that it is not obligated to apply beneficial Double Taxation Avoidance Agreement (DTAA) rates unless all required documents are submitted and reviewed satisfactorily. Shareholders holding shares in physical form must ensure KYC compliance by June 26, 2026, or the dividend will be withheld. The intimation was signed by Suchita Singh, Company Secretary & Compliance Officer.

Historical Stock Returns for Chembond Material Technologies

1 Day5 Days1 Month6 Months1 Year5 Years
+1.42%-1.39%+17.13%+16.85%-18.70%-16.07%

How will the new TDS provisions under the Income-tax Act, 2025, impact Chembond's shareholder retention rates?

What is the expected payout ratio for Chembond based on this dividend declaration and the company's current earnings?

Could the stringent KYC and documentation requirements lead to a significant increase in unclaimed dividends for the company?

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Chembond Material Technologies Posts FY26 Audited Results, Recommends ₹2 Dividend

5 min read     Updated on 19 May 2026, 07:23 AM
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Chembond Material Technologies Limited approved its FY26 audited results on May 15, 2026, reporting consolidated revenue from operations of ₹25,007.40 lakhs and net profit of ₹1,289.07 lakhs. Standalone revenue stood at ₹21,014.12 lakhs with net profit of ₹775.88 lakhs. The Board recommended a dividend of ₹2.00 per equity share, subject to shareholder approval at the 51st AGM.

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Chembond Material Technologies Limited (formerly Chembond Chemicals Limited) has approved its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, at a Board of Directors meeting held on May 15, 2026. The results were reviewed by the Audit Committee and audited by M/s. Kastury & Talati, Chartered Accountants, who issued unmodified audit opinions on both standalone and consolidated financial statements. In addition to approving the results, the Board recommended a dividend of ₹2.00 per equity share of face value ₹5 each (40%), subject to shareholder approval at the ensuing 51st Annual General Meeting. The submission was made pursuant to Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Consolidated Financial Performance

On a consolidated basis, Chembond Material Technologies reported revenue from operations of ₹25,007.40 lakhs for the year ended March 31, 2026, compared to ₹20,129.99 lakhs in the previous year. Total income for the year stood at ₹25,274.34 lakhs. The company recorded a net profit of ₹1,289.07 lakhs for the year, while total comprehensive income stood at ₹1,311.78 lakhs. The key consolidated financial metrics are presented below:

Particulars Q4 FY26 (Unaudited) Q3 FY26 (Unaudited) Q4 FY25 (Unaudited) FY26 (Audited) FY25 (Audited)
Revenue from Operations (₹ lakhs) 7,175.37 6,289.52 5,220.96 25,007.40 20,129.99
Total Income (₹ lakhs) 7,009.07 6,445.05 5,393.43 25,274.34 20,891.67
Total Expenses (₹ lakhs) 6,622.60 5,968.96 4,945.00 23,590.49 19,100.30
Profit Before Exceptional Items & Tax (₹ lakhs) 386.47 476.09 448.44 1,683.86 1,791.36
Profit Before Tax (₹ lakhs) 433.60 296.48 448.44 1,551.38 1,946.10
Net Profit for the Period (₹ lakhs) 348.48 158.86 335.62 1,289.07 1,756.24
Total Comprehensive Income (₹ lakhs) 370.37 157.29 338.35 1,311.78 1,762.99
Basic EPS (₹5 each, not annualised) 2.59 1.18 2.50 9.59 13.06
Diluted EPS (₹5 each, not annualised) 2.59 1.18 2.50 9.59 13.06
Paid-up Share Capital (₹ lakhs) 672.41 672.41 672.41 672.41 672.41
Other Equity (₹ lakhs) 16,021.70 14,944.13

The exceptional item for the year reflects the incremental effect on gratuity of ₹(132.48) lakhs, arising from the notification of new Labour Codes effective from November 21, 2025, accounted for based on actuarial valuation.

Standalone Financial Performance

On a standalone basis, Chembond Material Technologies reported revenue from operations of ₹21,014.12 lakhs for the year ended March 31, 2026, compared to ₹17,120.70 lakhs in the previous year. Profit before tax for the year stood at ₹1,021.01 lakhs, while net profit for the year was ₹775.88 lakhs. The standalone financial highlights are as follows:

Particulars Q4 FY26 (Unaudited) Q3 FY26 (Unaudited) Q4 FY25 (Unaudited) FY26 (Audited) FY25 (Audited)
Revenue from Operations (₹ lakhs) 6,008.05 5,220.72 4,444.44 21,014.12 17,120.70
Total Income (₹ lakhs) 5,843.51 5,374.53 4,616.69 21,280.53 17,840.67
Profit Before Exceptional Items & Tax (₹ lakhs) 228.04 293.91 411.81 1,138.00 1,764.31
Profit Before Tax (₹ lakhs) 281.13 123.82 411.81 1,021.01 1,919.05
Net Profit for the Period (₹ lakhs) 191.43 4.38 296.56 775.88 1,722.36
Total Comprehensive Income (₹ lakhs) 209.20 3.48 297.92 795.46 1,727.79
Basic EPS (₹5 each, not annualised) 1.42 0.03 2.21 5.77 12.81
Diluted EPS (₹5 each, not annualised) 1.42 0.03 2.21 5.77 12.81
Other Equity (₹ lakhs) 16,289.36 15,728.11

Segment-wise Performance

The Group operates across two reportable business segments: Specialty Chemicals and Animal Health. The consolidated segment-wise revenue and results for the year ended March 31, 2026 are presented below:

Segment Q4 FY26 Revenue (₹ lakhs) FY26 Revenue (₹ lakhs) FY25 Revenue (₹ lakhs) FY26 PBIT (₹ lakhs) FY25 PBIT (₹ lakhs)
Specialty Chemical 6,033.23 20,792.76 16,848.53 871.60 1,004.43
Animal Health 1,142.14 4,214.64 3,281.46 545.31 25.25
Net Turnover 7,175.37 25,007.40 20,129.99
Total Segment Results 552.77 1,416.91 1,029.68

Segment assets as at March 31, 2026 stood at ₹20,220.92 lakhs for Specialty Chemicals and ₹1,721.11 lakhs for Animal Health, aggregating to total assets of ₹21,942.02 lakhs. Segment liabilities totalled ₹5,247.91 lakhs.

Consolidated Balance Sheet Highlights

The consolidated statement of assets and liabilities as at March 31, 2026 reflects total assets of ₹21,942.02 lakhs, compared to ₹20,173.96 lakhs as at March 31, 2025. Total equity stood at ₹16,694.12 lakhs, comprising equity share capital of ₹672.41 lakhs and other equity of ₹16,021.70 lakhs.

Balance Sheet Item 31.03.2026 (₹ lakhs) 31.03.2025 (₹ lakhs)
Total Non-current Assets 9,762.31 10,045.11
Total Current Assets 12,179.72 10,128.85
Total Assets 21,942.02 20,173.96
Total Equity 16,694.12 15,616.54
Total Non-current Liabilities 107.32 7.34
Total Current Liabilities 5,140.59 4,550.08
Total Equity and Liabilities 21,942.02 20,173.96

Cash and cash equivalents as at March 31, 2026 stood at ₹940.78 lakhs on a consolidated basis, up from ₹600.72 lakhs as at March 31, 2025. Net cash from operating activities for the year was ₹1,479.15 lakhs, while net cash used in investing activities was ₹(1,018.13) lakhs.

ESOP and Other Disclosures

The company granted stock options to eligible employees under the Chembond – ESOP 2025 scheme. In accordance with Ind AS 102 – Share-based Payment, an employee compensation expense of ₹1.13 lakhs has been recognised under Employee Benefits Expense for the quarter and year ended March 31, 2026. The Group has also decided to continue with the existing tax structure as prescribed under the Income Tax Act, 1961. The detailed financial results are available on the BSE ( www.bseindia.com ), NSE ( www.nseindia.com ), and the company's website at www.chembond.in . The filing was signed by Suchita Singh, Company Secretary & Compliance Officer, and Rashmi Gavli, Chief Financial Officer, on May 15, 2026.

Historical Stock Returns for Chembond Material Technologies

1 Day5 Days1 Month6 Months1 Year5 Years
+1.42%-1.39%+17.13%+16.85%-18.70%-16.07%

How will the implementation of new Labour Codes, which triggered a ₹132.48 lakhs exceptional gratuity charge, impact Chembond's employee cost structure and margins in FY27?

Given the Animal Health segment's dramatic PBIT turnaround from ₹25.25 lakhs in FY25 to ₹545.31 lakhs in FY26, what expansion or strategic investments is the company planning to sustain this growth trajectory?

With consolidated net profit declining from ₹1,756.24 lakhs to ₹1,289.07 lakhs despite a 24% revenue growth, what specific margin improvement initiatives is management pursuing to restore profitability levels?

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