Mafatlal Industries Limited has recommended a final dividend of ₹1.25 per equity share for the financial year ended March 31, 2026, subject to shareholder approval. The record date for determining eligibility for this dividend is July 31, 2026. The company has communicated the applicable tax deduction at source (TDS) rates to shareholders, noting that dividend income is taxable in the hands of recipients under the Finance Act, 2020.

The Board of Directors approved the dividend recommendation at a meeting held on May 5, 2026. The payout will be finalized following approval by members at the 112th Annual General Meeting scheduled for August 7, 2026. The company has outlined specific TDS rates and required documentation for various categories of shareholders to ensure compliance with the Income-tax Act, 2025.

For resident shareholders, the TDS rate varies based on the dividend amount and documentation provided. Individuals receiving an aggregate dividend not exceeding ₹10,000 during the financial year 2026-27 are not subject to TDS. Shareholders with a valid PAN are subject to a 10% TDS, while those without a valid PAN face a 20% deduction. Specific exemptions apply to entities such as insurance companies, government bodies, and mutual funds upon submission of valid declarations and certificates.

Non-resident shareholders are subject to a base TDS rate of 20%, plus applicable surcharge and cess, unless a lower rate applies under a relevant Double Taxation Avoidance Agreement (DTAA). Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs) must submit a Tax Residency Certificate (TRC) and electronically filed Form 41 to claim treaty benefits. Non-resident shareholders from notified jurisdictional areas face a 30% TDS rate.

Shareholders must submit all necessary documents, including self-attested copies of PAN and relevant declarations, by 5 P.M. IST on July 31, 2026, via the company's Registrar and Transfer Agent (RTA) website. The company reserves the right to deduct tax at the maximum applicable rate if documents are incomplete or not submitted by the deadline. KFin Technologies Limited acts as the RTA for Mafatlal Industries Limited.

Resident Shareholder TDS Rates

Non-Resident Shareholder TDS Rates

Mafatlal Industries has been directed by the Central Ground Water Authority (CGWA) to pay environmental compensation of Rs 8.63 Cr regarding ground water use at its Nadiad, Gujarat unit. The company received the order on June 9, 2026, which cites a delay in filing the online application for a No Objection Certificate (NOC) as the reason for the penalty. Mafatlal Industries is currently examining the notice and intends to avail all appropriate legal remedies to contest the matter.

The regulatory action stems from the company's failure to file the NOC application within the prescribed timeline. According to the CGWA, this delay attracts environmental compensation under the applicable guidelines. The authority has formally communicated that the payment is required to address the violation related to ground water abstraction at the specific facility.

In response to the directive, Mafatlal Industries stated that it is in the process of making representations before the concerned authority. The company plans to pursue further legal remedies as necessary to defend its position. Management indicated that it does not anticipate any material impact on its financials or operations resulting from this matter, beyond the potential creation of a contingent liability in the financial statements if required under accounting standards.

The disclosure was made to BSE Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The intimation follows the SEBI Master Circular dated January 30, 2026, which mandates detailed reporting on regulatory actions and their potential impacts on listed entities.

Details of the Regulatory Notice