Harsha Engineers International Limited has recommended a dividend of ₹1.5 per equity share for the financial year ended March 31, 2026. The company announced that dividend income is taxable in the hands of shareholders, and tax will be deducted at source (TDS) at the time of payment. The applicable tax rate depends on the shareholder's residential status and the validity of their Permanent Account Number (PAN).

Tax Deduction Rates for Residents

For resident shareholders, the standard TDS rate is 10% on the dividend amount. However, no tax will be deducted if the aggregate dividend paid during the tax year does not exceed ₹10,000. Individuals can also avoid TDS by submitting Form 121. Specific categories such as insurance companies, mutual funds, and Alternative Investment Funds (AIF) established in India can claim nil or lower deduction by providing self-declarations and documentary evidence.

If a shareholder's PAN is unavailable, invalid, or inoperative—often due to a lack of linkage with Aadhaar—the company is required to deduct tax at a higher rate of 20%.

Guidelines for Non-Resident Shareholders

Non-resident shareholders, including Foreign Institutional Investors and Foreign Portfolio Investors, are subject to a TDS rate of 20% plus applicable surcharge and cess. These shareholders may opt for beneficial rates under the Double Taxation Avoidance Agreement (DTAA) if applicable. To claim these benefits, they must submit a valid Tax Residency Certificate (TRC), Form 41, and a self-declaration confirming their tax residency and beneficial ownership status.

Submission Deadline and Compliance

The company has set a deadline of Saturday, June 20, 2026, for shareholders to submit all necessary documents, including Form 121, Form 41, and TRCs. Documents can be uploaded via a specific link provided by the company. Any communication received after this date will not be considered, and TDS will be deducted at the applicable standard rate. Shareholders are advised to update their PAN, email, and bank details with their depositories or the company to ensure compliance and correct tax deduction.

Harsha Engineers International Limited has announced that its wholly owned subsidiary, Harsha Engineers Advantek Limited, will undertake a Phase 2 strategic capital investment of approximately Rs 110 crores. The investment is targeted at expanding manufacturing capabilities for bushing and stamping products at the subsidiary’s plant located in Bavla, Ahmedabad. This expansion is intended to drive revenue growth and capitalize on market opportunities through capital investment.

The project involves setting up new buildings and manufacturing lines to increase production capacity. The existing capacity stands at approximately 38 Mio pieces for bushings, cages, and stamping products, with a capacity utilization of approximately 54% on an annualized basis. The proposed expansion will add approximately 12 Mio pieces to this capacity.

The new capacity is scheduled to be added within a period of 18 months. The investment of approximately Rs 110 crores will be financed through a combination of capital contribution and term loan financing. The rationale behind this strategic expansion includes strengthening the company's position in stamping components and bushing products.

Investment and Capacity Details

The disclosure was made to the exchanges pursuant to Regulation 30 of the SEBI (Listing Obligation and Disclosures Requirements) Regulations, 2015.