DCM Shriram Fine Chemicals has been fined a total of ₹1,36,880 by BSE Limited and National Stock Exchange of India Limited for a technical non-compliance regarding the appointment of a director. The stock exchanges imposed a penalty of ₹68,440 each on the company for failing to obtain prior shareholder approval for the continuation of Non-Executive Director Mr. Sunil Behari Mathur, who has attained the age of 75 years. The fines were levied under Regulation 17(1A) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for the quarter ended March 31, 2026.

The company received notices via email on May 27, 2026, detailing the financial penalty. The breakdown of the fine includes a base amount of ₹58,000 plus applicable GST of 18%, amounting to ₹10,440, which aggregates to ₹68,440 per exchange. DCM Shriram Fine Chemicals clarified that the delay was an unintended omission caused by time constraints related to implementing a Scheme of Arrangement and meeting listing requirements.

To rectify the compliance lapse, the company has initiated the process for obtaining shareholders' approval through a postal ballot. The company stated that this process will be concluded within the prescribed period of three months from the date of appointment. The voting results for the postal ballot are scheduled to be declared on Friday, May 29, 2026, following which the Special Resolution and Explanatory Statement will be submitted to the exchanges.

The company disclosed that there is no material impact on its financial, operational, or other activities beyond the payment of the imposed fines. It further confirmed that corrective actions have already been taken to address the regulatory violation. The disclosure was made in accordance with Regulation 30 of the SEBI Listing Regulations and a specific SEBI circular dated July 13, 2023.

Details of Regulatory Action

DCM Shriram Fine Chemicals Ltd. has announced its audited financial results for the quarter and financial year ended March 31, 2026. The Board of Directors, which met on May 19, 2026, approved the standalone and consolidated results, reporting a net loss for the fiscal year. Additionally, the board recommended a dividend for shareholders subject to their approval at the upcoming Annual General Meeting.

Financial Performance

The company reported a net loss of Rs. 429 lakhs for the financial year ended March 31, 2026, compared to a net profit of Rs. 1,845 lakhs in the previous year. Total income for the year stood at Rs. 38,771 lakhs, down from Rs. 43,221 lakhs in the prior year. For the quarter ended March 31, 2026, the company recorded a net loss of Rs. 408 lakhs. On a consolidated basis, the net loss for the year was Rs. 352 lakhs.

Key financial metrics for the standalone financial results are summarized below:

Dividend Declaration

The Board of Directors has recommended a dividend of 20%, which translates to Rs. 0.40 per equity share of face value Rs. 2/- for the financial year 2025-26. This dividend is subject to the approval of shareholders at the ensuing 5th Annual General Meeting (AGM) of the Company. If approved, the dividend will be paid to all eligible shareholders within 30 days from the date of the AGM.

Corporate Actions

The board has approved convening the 5th Annual General Meeting (AGM) through Video Conference (VC) or Other Audio Visual Means (OAVM). The meeting is scheduled for Tuesday, July 14, 2026. The statutory auditors, M/s Kirtane & Pandit LLP, have provided an audit report with an unmodified opinion on the standalone and consolidated financial results.