Procter & Gamble Health Limited has recommended a final dividend of Rs 45 per equity share for the financial year 2025-26, subject to shareholder approval at the ensuing Annual General Meeting. The dividend applies to shares with a face value of Rs 10 each and will be paid to shareholders whose names appear in the Register of Members or depository records as on the record date. The company has detailed the tax deduction at source (TDS) implications, noting that dividend income is taxable in the hands of shareholders under the Income Tax Act, 1961, and the Finance Act, 2020.

Tax Deduction Rates for Resident Shareholders

The company will withhold tax on dividend income paid to resident shareholders as per Section 194 of the Income Tax Act. The applicable TDS rates depend on the total dividend amount and the documentation provided by the shareholder.

Tax Deduction Rates for Non-Resident Shareholders

For non-resident shareholders, including Foreign Institutional Investors (FII) and Foreign Portfolio Investors (FPI), the TDS rate is 20% plus applicable surcharge and cess, or the rate under the Double Taxation Avoidance Agreement (DTAA), whichever is lower. To avail DTAA benefits, shareholders must submit specific documents, including a self-attested copy of the PAN card, Tax Residency Certificate, and Form 41 filed electronically on the Indian Income Tax Portal.

Compliance and Submission Deadlines

Shareholders must submit required forms and documents to claim exemption from tax deduction for the financial year 2026-27. The deadline for submission is August 12, 2026. Forms can be submitted via the Registrar and Transfer Agent’s website or email. Incomplete or unsigned forms received after this date will not be considered. The company will use a compliance check utility to determine the validity of PANs; invalid PANs will attract a higher TDS rate of 20% under Section 262 of the Income Tax Act.

Shareholders are also required to update their bank details to facilitate electronic remittance of dividends. Members holding shares in electronic form must furnish details to their depository participants, while those holding physical shares must provide details to the RTA, M/s. KFin Technologies Limited, along with a cancelled cheque.

Procter & Gamble Health Limited reported a profit after tax of ₹327 crore for the fiscal year ended March 31, 2026, marking a 30% increase compared to the comparable 12-month period last year. Sales for the period reached close to ₹1400 crore, reflecting a 16% growth driven by robust brand fundamentals, superior retail execution, and new user acquisition. The company delivered ₹35 crore in savings during the fiscal year through targeted productivity and savings programs, supporting margin expansion and value creation for stakeholders.

Financial Performance and Strategy

The company’s Integrated Growth Strategy, focusing on portfolio quality, superiority, productivity, and constructive disruption, underpinned the results. Over the past five years, absolute sales and profit have grown 1.4X and 1.8X respectively. Management highlighted that the improvement in gross margin for FY26 was primarily driven by a combination of productivity, favorable product mix, and pricing within National Pharmaceutical Pricing Authority (NPPA) regulations. The company recorded a balanced volume growth at mid-single digits in FY26.

Innovations and Portfolio Expansion

Management detailed three significant innovations launched during the year: Livogen Iron Gummies, Neurobion Nerve Pain Relief Cream, and Evion L5000 for Non-Alcoholic Fatty Liver Disease. These products collectively contributed early single-digit points of growth to the overall business. Livogen Iron Gummies achieved the highest category share on Amazon, ranking #1 on the platform in the Iron Gummies category. The company’s portfolio includes trusted brands such as Neurobion, Livogen, Evion, Seven Seas, Polybion, and Nasivion across categories including Vitamin B, Iron, Vitamin E, Omega-3, and Nasal Care.

Market Reach and Distribution

Procter & Gamble Health expanded its market penetration through changes in its Go-to-Market model over the last 2-3 years. The company added nearly 30,000 pharmacies and Healthcare Practitioners (HCPs) to its overall coverage as part of an initiative to expand into extra-urban white-space geographies. E-commerce remains a rapidly growing and material channel, with growth distributed across brands rather than being singularly focused.

Export Business and Outlook

The exports business witnessed encouraging growth in FY26, recording 3X growth in Nepal and high single-digit growth in Sri Lanka. This growth was bolstered by new product launches such as Neurobion Forte and Evion Forte. Management expressed confidence in continuing the growth momentum, citing increasing health consciousness, the expanding Vitamin, Mineral, and Supplements (VMS) market, and a shift towards preventive healthcare as key drivers.