Sudarshan Chemical Industries has issued a communication to shareholders detailing the Tax Deduction at Source (TDS) procedures for its proposed final dividend of ₹5.00 per equity share for Financial Year 2026 (FY26). The Board of Directors recommended this 250% dividend on May 25, 2026, subject to shareholder approval at the 75th Annual General Meeting scheduled for August 18, 2026. To ensure accurate tax withholding, the company has set a strict deadline of August 11, 2026—the record date—for shareholders to submit required forms and update their residential status and Permanent Account Number (PAN) details.

The dividend payment is contingent upon approval at the AGM, with eligible shareholders expected to receive funds on or before September 8, 2026. Under the Income Tax Act, 2025, dividends are taxable in the hands of shareholders, necessitating TDS deduction by the company. The applicable withholding rates vary significantly based on shareholder category, documentation status, and residential status. Failure to provide valid PAN or required declarations by the record date will result in higher TDS deductions or inoperative PAN treatment, potentially impacting net dividend receipts.

TDS Rates for Resident Shareholders

The company has outlined specific withholding rates for resident shareholders based on their income levels and documentation compliance:

Shareholders holding shares under multiple accounts linked to the same PAN will have the highest applicable TDS rate applied to their entire shareholding if statuses differ. Requests for PAN or residential status updates will not be accepted after the August 11 record date.

Non-Resident Shareholder Requirements

Non-resident shareholders, including Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs), face a standard withholding rate of 20% plus applicable surcharge and cess. However, they may avail benefits under Double Taxation Avoidance Agreements (DTAA) by submitting specific documents before the record date. Required submissions include a self-attested PAN (or Form 41 if PAN is not required), a valid Tax Residency Certificate for April 2026–March 2027, and a self-declaration of beneficial ownership. Singapore residents must additionally provide evidence demonstrating non-applicability of Article 24 limitations under the India-Singapore DTAA.

Compliance and Payment Mechanisms

In compliance with SEBI regulations mandating electronic dividend payments, shareholders must ensure their bank account details are updated with their Depository Participant (for demat holdings) or the Registrar and Transfer Agent, MUFG Intime India Private Limited (for physical holdings). Physical warrant payments are no longer permitted unless all mandatory details—including PAN, mobile number, email, and nomination—are furnished. Shareholders who fail to submit incomplete or unsigned forms by August 11, 2026, will not be considered for lower withholding rates, and any tax deducted at higher rates due to missing documents can only be reclaimed through individual Income Tax Return filings, not against the company.

Sudarshan Chemical Industries Limited has convened its 75th Annual General Meeting (AGM) for Tuesday, August 18, 2026, at 4:00 p.m. (IST), to be held via Video Conferencing (VC) / Other Audio Visual Means (OAVM). The company has also dispatched its Annual Report for FY26 and the AGM notice electronically to registered members, with web-links sent to those without registered email addresses. The dispatch was notified to BSE Limited and National Stock Exchange of India Limited on July 28, 2026, pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

AGM and Dividend Details

The Board of Directors, at its meeting held on May 25, 2026, recommended a Final Dividend of ₹5.00 per equity share of face value ₹2.00 each (250%) for FY 2025-26, subject to shareholder approval at the 75th AGM. The key dates for the AGM and dividend process are summarised below:

Members whose names appear in the Register of Members as on the record date of August 11, 2026, will be eligible for the dividend if approved at the AGM. The dividend payout is in accordance with the Company's Dividend Distribution Policy, which targets an annual payout in the range of 25% to 40% of standalone Profit After Tax (PAT).

Financial Performance Overview

The financial results for FY26 reflect the impact of the Heubach Group acquisition completed in March 2025, which positioned Sudarshan Chemical as a global leader in color solutions under the "ONE Sudarshan" banner. The following table summarises key financial metrics:

Consolidated revenue surged to ₹9,787 Crores, driven by the first full year of consolidation of the acquired Heubach business. The legacy Sudarshan standalone business saw revenue remain broadly stable, influenced by changes to the go-to-market and distributor model in parts of Europe and Latin America. The acquired business experienced customer destocking during parts of the year, though demand normalisation began from the fourth quarter. RIECO Industries Limited, a subsidiary, also improved performance, reporting revenue of approximately ₹268 Crores compared with ₹228 Crores in FY25, and EBITDA of ₹10 Crores compared with an EBITDA loss of ₹17 Crores in the previous year.

Global Operations and Strategic Highlights

Following the Heubach acquisition, Sudarshan Chemical now operates 19 manufacturing facilities across 11 countries in five continents, serving over 4,000 customers in more than 120 countries with a portfolio of nearly 1,600 products and 63 brands. The company has commenced SAP integration (Project Integra), consolidating four legacy SAP systems into a single unified landscape, and inaugurated a Global Capability Center (GCC) in Pune to streamline operations. On the ESG front, 56% of purchased electricity came from renewable sources, freshwater consumption was reduced by 27.28%, and 71.3% of total waste was diverted away from landfill.

Shareholder Compliance Requirements

Effective April 1, 2024, SEBI mandated that physical shareholders must update their KYC details — including PAN, nomination choice, contact details, mobile number, bank account details, and signature — to receive dividends electronically. Physical holders with unupdated folios will not receive dividends until these details are rectified. Members can update their details by submitting prescribed forms to MUFG Intime India Private Limited or contacting their Depository Participant for dematerialised holdings. The Annual Report and AGM notice were sent electronically on July 27, 2026, to members who have registered their email addresses with the company or its Registrar and Share Transfer Agent (RTA), MUFG Intime India Private Limited.