Kalyani Investment Company reported a standalone profit after tax (PAT) of ₹24.21 million for the quarter ended June 30, 2026, rising 16.6% year-on-year from ₹20.76 million. On a consolidated basis, the company returned to profitability with a PAT of ₹6.84 million, reversing a loss of ₹31.81 million recorded in the same quarter last year.

The results were approved by the Board of Directors on August 13, 2026. The financial statements were prepared in accordance with Indian Accounting Standards (Ind AS) and reviewed by statutory auditors P G Bhagwat LLP.

Financial Performance

Standalone total income for Q1FY27 stood at ₹59.48 million, compared to ₹57.82 million in Q1FY26. Interest income from fixed deposits contributed ₹51.27 million, while net gains on fair value changes added ₹8.21 million. Dividend income was nil for the quarter.

Consolidated total income remained flat at ₹59.48 million. However, the share in profit/loss of associate companies significantly impacted the bottom line. The company recorded a share in loss of ₹23.21 million from its associate, Hikal Limited, compared to a share in loss of ₹70.25 million in the previous year quarter.

What the Numbers Show

The most material driver of the company’s financial performance was Other Comprehensive Income (OCI). Both standalone and consolidated OCI surged to approximately ₹26,842 million and ₹26,843 million respectively, compared to roughly ₹7,740 million in the prior year quarter. This increase was primarily due to changes in the fair value of FVTOCI equity investments, which rose to ₹31,192 million from ₹9,032 million. This indicates that the reported comprehensive income is heavily dependent on unrealized valuation gains rather than operational cash flows or dividend receipts, which were nil for the quarter.

Associate Company Developments

The consolidated results reflect developments at Hikal Limited, in which Kalyani Investment holds a 31.36% stake. Key updates include:

• Environmental Litigation: No material developments occurred regarding the alleged non-compliance with environmental laws. The Supreme Court of India has stayed the National Green Tribunal’s order accepting compensation claims of ₹174.5 million against Hikal. Hikal believes it has a strong case on merits.
• Revenue Recognition Review: An external expert review confirmed that earlier irregularities in revenue timing were limited to preponement of genuine sales via document alteration by certain employees. Corrective actions have been implemented, with no further impact on current or previous periods.
• Asset Impairment: In the prior fiscal year, Hikal recorded an impairment charge of ₹471 million for assets rendered unusable during plant repurposing. Kalyani’s share of this charge was ₹147.71 million.
• Liability Restructuring: Hikal restructured salary components, reducing a previously recognized gratuity liability by ₹89 million. Kalyani recognized its share of this reduction at ₹27.91 million as an exceptional item benefit in the current quarter.

Kalyani Investment Company Limited has established Friday, August 14, 2026, as the critical deadline for shareholders to submit tax-related documents and update bank details to ensure accurate Tax Deduction at Source (TDS) on its proposed ₹10 per equity share dividend. This communication clarifies that failure to provide necessary documentation by this date may result in higher withholding tax rates or delays in payment, making timely action essential for investors seeking to maximize their net dividend income. The dividend, representing a 100% payout on face value, remains subject to approval by members at the company’s 17th Annual General Meeting (AGM) scheduled for Thursday, September 17, 2026.

The company notified the Bombay Stock Exchange (BSE) and the National Stock Exchange of India Limited (NSE) of these requirements on August 6, 2026, pursuant to Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Under the Income Tax Act, 2025, dividend income is taxable in the hands of shareholders, mandating the company to deduct TDS at prescribed rates unless exemptions are claimed through valid documentation. The dividend payment is scheduled for on or before Friday, September 25, 2026, exclusively via electronic mode as per SEBI regulations prohibiting physical warrants.

Key Dates and Dividend Details

Shareholders must align their actions with the following timeline to ensure eligibility and correct tax treatment:

Eligibility is determined by shareholding records at the close of business on the record date. There is no book closure period; the record date serves as the definitive cutoff. Shareholders holding securities in dematerialized form will receive dividends based on data from National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL). Physical shareholders must have valid transmission requests processed by the cutoff.

TDS Provisions and Required Documents

The company has outlined distinct TDS rates and document requirements for different shareholder categories, all due by August 14, 2026.

Resident Shareholders

For resident individuals, TDS is deducted at 10% if a valid Permanent Account Number (PAN) is registered. If PAN is missing, invalid, or not linked with Aadhaar, the rate rises to 20% under Section 397(2) of the Act. No tax is deducted if the total dividend does not exceed ₹10,000 in Tax Year 2026-27, or if Form 121 is submitted meeting all eligibility conditions. Resident non-individuals such as Mutual Funds, Alternative Investment Funds (AIFs), and Insurance Companies can claim nil TDS by submitting self-declarations and registration certificates as specified in Annexure 2.

Non-Resident Shareholders

Non-residents face a default withholding tax rate of 20% plus applicable surcharge and cess under Section 393(2). To avail benefits under Double Tax Avoidance Agreements (DTAA), shareholders must submit a Tax Residency Certificate (TRC) for 2026-27, Form 41 declaration from the Income Tax portal, and proof of beneficial ownership. For Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs), SEBI registration certificates are also required. The company reserves the right to reject incomplete documents and apply standard rates.

Compliance and Submission Process

Shareholders must update their residential status, PAN, and bank account details with their Depository Participants or MUFG Intime India Private Limited, the Registrar and Transfer Agent. Physical shareholders must furnish specimen signatures and nomination details to enable electronic payments. Forms and declarations can be submitted via the RTA’s website or emailed to tdsforms@kalyani-investment.com . Any forms received after August 14, 2026, will not be considered. If shares are held under multiple accounts linked to the same PAN but with differing statuses, the highest applicable TDS rate will apply to the entire holding.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE029L01018/ada416ab-98c8-4aea-9974-91ce4996fec2.pdf