Shankar Lal Rampal Dye-Chem FY26 Results: Net profit up 18% to ₹134.9 crore

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Key Highlights

Net profit rose 18.4% YoY to ₹134.9 crore in FY26. Revenue grew 15.7% to ₹4,648.1 crore on higher volumes. Final dividend of ₹0.05 per share recommended by Board. Backward integration into manufacturing planned at Suwana. Operating cash outflow narrowed to ₹70.5 crore from ₹125.9 crore.

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Shankar Lal Rampal Dye-Chem reported a net profit of ₹134.9 crore for FY26, an 18.4% increase from the previous year. Revenue rose 15.7% to ₹4,648.1 crore, supported by higher volumes in core trading operations.

The Board recommended a final dividend of ₹0.05 per equity share for the year ended March 31, 2026. The 21st Annual General Meeting is scheduled for September 19, 2026, via video conferencing.

Financial Performance

Revenue from operations grew to ₹4,648.1 crore in FY26, up from ₹4,017.8 crore in FY25. Profit before tax stood at ₹181.5 crore, compared to ₹154.3 crore previously. Net profit after tax reached ₹134.9 crore, reflecting improved operational leverage despite volatile raw material costs.

Metric FY26 FY25 Change
Revenue ₹4,648.1 crore ₹4,017.8 crore +15.7%
Profit Before Tax ₹181.5 crore ₹154.3 crore +17.7%
Net Profit ₹134.9 crore ₹113.9 crore +18.4%
EPS (Basic) ₹2.11 ₹1.78 +18.5%

What the Numbers Show

Operating expenses increased to ₹4,466.8 crore from ₹3,863.6 crore, primarily due to higher stock purchases and employee benefits. However, the net profit margin expanded slightly to 2.90% from 2.84%, indicating effective cost management relative to revenue growth. Other income remained negligible at ₹0.3 crore, confirming that the profit growth was driven by core trading activities rather than non-operating gains.

Strategic Outlook

The company announced plans for backward integration into manufacturing at Suwana, Bhilwara. This shift aims to reduce reliance on third-party suppliers and expand into home and cleaning care products. The move is designed to secure supply chains and capture higher margins in adjacent categories.

Balance Sheet and Dividend

Total assets grew to ₹1,565.6 crore, with current assets comprising ₹1,534.4 crore. Cash flow from operations was negative at ₹70.5 crore, down from an outflow of ₹125.9 crore in the prior year, suggesting improved working capital efficiency. The final dividend payout amounts to ₹32.0 lakh in total.

Historical Stock Returns for Shankar Lal Rampal Dye-Chem

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How will the backward integration into manufacturing at Suwana impact the company's gross margins and capital expenditure requirements in the near term?

What specific challenges does the company anticipate in transitioning from a pure trading model to manufacturing home and cleaning care products?

Given the negative operating cash flow despite profit growth, what strategies is management employing to improve working capital efficiency and free cash flow?

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Shankar Lal Rampal Dye-Chem approves strategic framework for new facility

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Key Highlights

Shankar Lal Rampal Dye-Chem Limited approved the integration roadmap for its March 2026 manufacturing acquisition during its August 20, 2026 Board meeting. The Board also closed the unused FY19 dividend account and updated shareholder eligibility criteria for notices based on the August 14, 2026 cut-off date.

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Shankar Lal Rampal Dye-Chem Limited’s Board of Directors approved the strategic operational framework, integration roadmap, and long-term capacity utilization plan for a manufacturing facility acquired in March 2026. The resolution was passed during the Board meeting held on August 20, 2026, at the company’s registered office in Bhilwara, Rajasthan.

The Board also approved the closure of the unused dividend bank account pertaining to FY19. Additionally, the meeting superseded point 3 of the outcome from the previous Board meeting held on August 14, 2026. Shareholders who held shares on the record date of August 14, 2026, will be eligible to receive notices through the Registrar and Transfer Agent (RTA) or Depositories.

Key Resolutions

The Board transacted the following items during the session:

  • Approved the strategic operational framework and integration roadmap for the facility acquired in March 2026.
  • Authorized the closure of the unused dividend bank account for FY19.
  • Superseded the third point of the outcome from the Board meeting dated August 14, 2026, clarifying that shareholders on record as of August 14, 2026, are eligible for notices.

The meeting commenced at 11:30 am and concluded at 12:15 pm. Aditi Babel, Company Secretary & Compliance Officer, certified the proceedings.

Historical Stock Returns for Shankar Lal Rampal Dye-Chem

1 Day5 Days1 Month6 Months1 Year5 Years
+3.32%+0.59%+7.35%-21.95%-47.07%-63.09%

What is the projected timeline for the acquired facility to reach full capacity utilization under the new integration roadmap?

How is the March 2026 acquisition expected to impact Shankar Lal Rampal Dye-Chem's revenue and EBITDA margins in the upcoming fiscal years?

Does the strategic operational framework involve any significant capital expenditure or restructuring costs that could affect short-term cash flows?

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