Chembond Material Technologies declares FY26 dividend of ₹2 per share
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 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 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?































