India Gelatine & Chemicals reports 44% PAT surge in FY26
India Gelatine & Chemicals achieved a 44.4% increase in FY26 PAT to ₹25.10 crore, driven by cost efficiencies despite a 14.5% drop in revenue. The company recommends a ₹6 per share dividend and will hold its AGM on August 25, 2026, to approve key corporate actions.
*this image is generated using AI for illustrative purposes only.
india gelatine & chemicals delivered a robust financial performance in FY26, with net profit after tax (PAT) surging 44.4% to ₹25.10 crore from ₹17.39 crore in the previous year. This bottom-line expansion occurred despite a 14.5% contraction in revenue from operations, which fell to ₹169.81 crore from ₹198.53 crore. The divergence highlights significant margin improvement driven by operational efficiencies and cost optimization measures implemented during the year.
The Board of Directors has recommended a final dividend of ₹6 per equity share for FY26, representing a 60% payout ratio. This is an increase from the ₹5 per share dividend paid in FY25. If approved by shareholders, the total dividend outflow will amount to ₹425.54 lakh. The company’s 54th Annual General Meeting (AGM) is scheduled for Tuesday, August 25, 2026, at 11:00 a.m., to be conducted via Video Conferencing or Other Audio-Visual Means (OAVM).
Key Financial Metrics
The company’s profitability metrics showed substantial improvement across the board. Profit before tax (PBT) rose 43.9% to ₹32.61 crore, while EBITDA increased to ₹37.62 crore from ₹28.83 crore in FY25. The net worth of the company grew by 12.9% to ₹193.56 crore. Below is a summary of the key financial figures for FY26 compared to FY25:
| Financial Metric | FY26 (₹ in Lakhs) | FY25 (₹ in Lakhs) | Change |
|---|---|---|---|
| Revenue from Operations | 16,980.52 | 19,852.87 | -14.5% |
| EBITDA | 3,761.86 | 2,882.69 | +30.5% |
| Profit Before Tax | 3,261.39 | 2,264.84 | +43.9% |
| Profit After Tax | 2,510.17 | 1,738.93 | +44.4% |
| Net Worth | 19,356.48 | 17,150.10 | +12.9% |
Operational Drivers and Cost Management
Management attributed the revenue decline primarily to a reduction in selling prices for gelatine and ossein products, which fell by 16% and 30% respectively. However, the company successfully offset these top-line pressures through rigorous cost control. Power costs reduced by approximately 8%, aided by the stable operation of its solar power plant, which contributed estimated savings of over ₹2.5 crore. Additionally, improved efficiency in hot air generators lowered energy consumption. The company also benefited from stable raw material availability, particularly crushed bones, which supported uninterrupted operations.
AGM Agenda Items
Shareholders will vote on several special resolutions at the upcoming AGM. Key items include:
- Remuneration Revision: Approval for a revised salary structure for P. Velmurugan, Whole-Time Director designated as Executive Director. The new package totals ₹1.22 crore per annum, comprising ₹1.02 crore in fixed remuneration and variable pay of up to ₹20 lakh, effective from April 1, 2026, to November 30, 2030.
- Office Relocation: Shifting the registered office from Navrangpura, Ahmedabad, to Plot No. 1-A, GIDC Industrial Estate, Vapi, Gujarat, for administrative efficiency.
- Director Re-appointment: Re-appointment of Maheswaran Sankaralingam as a Non-Executive Director under Regulation 17(1A) of the SEBI Listing Regulations, noting he has attained the age of 75.
What the Numbers Show
The financial data reveals a clear strategy of margin protection over volume growth. While revenue contracted due to global price pressures in the gelatine sector, the company’s ability to expand PAT by nearly 45% indicates strong operational leverage. The EBITDA margin improved significantly, suggesting that fixed costs were effectively spread over production volumes or that variable costs were reduced. The increase in net worth further strengthens the balance sheet, providing a cushion for future investments, including the planned capacity expansion project estimated at ₹80 crore.
Voting and Logistics
Remote e-voting will be available from August 22 to August 24, 2026. The cut-off date for determining voting rights is August 18, 2026. Shareholders can vote via the CDSL e-voting platform. The register of members will remain closed from August 19 to August 25, 2026, to determine dividend eligibility. Unclaimed dividends from FY2017-18 onwards have been transferred to the Investor Education and Protection Fund (IEPF).
Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE342D01012/ea741e3e-b0da-4b24-838b-e70956999fc6.pdf
Historical Stock Returns for India Gelatine & Chemicals
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +3.43% | +6.45% | +9.08% | +17.40% | +9.78% | +224.41% |
How sustainable is the current margin expansion strategy if global gelatine and ossein prices continue to decline in FY27?
What is the expected timeline and return on investment for the planned ₹80 crore capacity expansion project?
Will the relocation of the registered office to Vapi, Gujarat, provide tangible logistical or cost advantages for supply chain operations?
18
Access 50+ Readymade Screeners 
Use 200+ Custom Filters 
Get Full Market Insights 
