HFCL Limited has recommended a dividend of 20%, or Re.0.20 per equity share of face value ₹1, for the financial year 2025-26. The Board of Directors approved the recommendation at its meeting held on April 30, 2026. The payout is subject to declaration by shareholders at the ensuing 39th Annual General Meeting and will be paid within 30 days of such approval.

The dividend distribution will comply with the provisions of the Income Tax Act, 2025, which mandates that dividend is taxable in the hands of shareholders. Consequently, the company will deduct tax at source (TDS) at prescribed rates. The applicable withholding tax rate varies based on the residential status of the shareholder and the documentation submitted. For resident individuals, no tax is deducted if the aggregate dividend during the financial year does not exceed ₹10,000. A rate of 10% applies if a valid PAN is updated in the company's records, while 20% is deducted if the PAN is invalid or not linked with Aadhaar.

Resident shareholders seeking exemption must submit specific forms, such as Form 121 or a lower/nil tax deduction certificate issued by the Income Tax department under Section 395 of the Income Tax Act, 2025. Non-resident shareholders, including Foreign Institutional Investors and Foreign Portfolio Investors, face a TDS rate of 20% plus applicable surcharge and cess, unless a beneficial tax treaty rate applies. To avail of treaty benefits, non-residents must provide documents including a Tax Residence Certificate, PAN card, and self-declarations regarding permanent establishment and beneficial ownership.

TDS Rates for Resident Shareholders

TDS Rates for Non-Resident Shareholders

Shareholders holding shares in physical form must update their KYC details, including PAN and bank account details, to receive dividend payments electronically. The company has mandated that dividend to physical shareholders will be paid only via electronic mode after these details are furnished. All shareholders are requested to ensure their bank account details, residential status, and contact information are updated in their demat accounts.

To ensure the correct withholding tax rate is applied, shareholders must submit the requisite documents to the company's Registrar and Transfer Agent, MCS Share Transfer Agent Limited, or via email to tdsexm@hfcl.com . The deadline for submission is August 16, 2026. Documents received after this cutoff will be accepted at the sole discretion of the company. Non-resident non-individual members may alternatively submit documents through their custodian registered on the NSDL platform.

hfcl witnessed a notable block trade on the National Stock Exchange (NSE), with approximately 1,466,068 shares changing hands in a single transaction. The deal was executed at a price of Rs. 222.30 per share, aggregating to a total transaction value of Rs. 32.59 crores.

Block Trade Details

The following table summarises the key parameters of the block trade recorded on the NSE:

Block trades of this scale typically involve institutional participants or large investors executing bulk orders outside the regular market mechanism, enabling significant share transfers with reduced market impact. The transaction in HFCL represents a sizeable movement in the stock, reflecting active interest from large-lot participants in the counter.