Sundram Fasteners Declares Second Interim Dividend of Rs 4.25 Per Share for FY26
Sundram Fasteners Limited declared a second interim dividend of Rs 4.25/- per share (425% of face value of Re 1/-) for the financial year ended March 31, 2026, approved by the Board on April 30, 2026. The dividend is payable on May 25, 2026, to shareholders on record as of May 8, 2026. Detailed TDS provisions under the Income-Tax Act, 2025 apply, with a document submission deadline of May 11, 2026.
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Sundram Fasteners Limited has declared a second interim dividend of Rs 4.25/- per share (425% of face value of Re 1/- each) for the financial year ended March 31, 2026. The Board of Directors approved this dividend at their meeting held on April 30, 2026. Shareholders on record as of May 8, 2026, will be eligible to receive the dividend, which is scheduled for payment on May 25, 2026.
Key Dividend Details
The following table summarises the essential parameters of the second interim dividend announcement:
| Parameter: | Details |
|---|---|
| Dividend Per Share: | Rs 4.25/- |
| Dividend Rate: | 425% of face value |
| Face Value: | Re 1/- per share |
| Financial Year: | Ended March 31, 2026 |
| Board Approval Date: | April 30, 2026 |
| Record Date: | May 8, 2026 |
| Payment Date: | May 25, 2026 |
| TDS Document Submission Deadline: | May 11, 2026 |
Tax Deduction at Source (TDS) Framework
In accordance with the provisions of the Income-Tax Act, 2025, dividends paid or distributed by the company are taxable in the hands of shareholders. The company is required to deduct tax at source (TDS) at prescribed rates, which vary depending on the residential status and category of the shareholder. Shareholders are requested to submit all relevant documents through the designated portal by May 11, 2026 (Monday) to enable the company to apply the appropriate TDS rate.
TDS Provisions for Resident Shareholders
The applicable TDS rates and documentation requirements for key categories of resident shareholders are outlined below:
| Category of Shareholders: | TDS Applicability / Documentation Requirement |
|---|---|
| Mutual Funds | No TDS as per Section 393(5)(d) of the Act; valid SEBI registration certificate required |
| Insurance Companies | No TDS as per Section 393(4) of the Act; PAN and valid IRDAI registration certificate required |
| Category I & II Alternative Investment Fund | No TDS as per Section 400(1) of the Act; valid SEBI registration certificate required |
| Recognized Provident Fund | No TDS as per Circular No. 18/2017; valid documentary evidence of registration required |
| Approved Superannuation Fund | No TDS as per Circular No. 18/2017; valid approval from Commissioner required |
| Approved Gratuity Fund | No TDS as per Circular No. 18/2017; valid approval from Commissioner required |
| National Pension Scheme | No TDS as per Section 393(9) of the Act |
| Government (Central/State) | No TDS as per Section 393(5)(a) of the Act |
| Any other entity entitled to exemption from TDS | Valid self-attested documentary evidence in support of TDS exemption required |
| Other Resident Shareholders | TDS at 10% under Section 393(1); 20% under Section 397 if valid PAN not available; no TDS if aggregate dividend does not exceed Rs. 10,000/-; Form 121 applicable for eligible individuals |
TDS Provisions for Non-Resident Shareholders
For non-resident shareholders, including Foreign Portfolio Investors (FPI) and Foreign Institutional Investors (FII), TDS is required to be deducted at the rate of 20% or the rates in force as per the Finance Act (plus applicable surcharge and cess) under Section 393(2) of the Act. Non-resident shareholders may avail benefits under the applicable Double Tax Avoidance Agreement (DTAA) read with the Multilateral Instrument (MLI) under Section 159 of the Act, provided they submit the following documents:
- Self-attested copy of PAN allotted by Indian Income Tax authorities
- Self-attested copy of valid Tax Residency Certificate from the country of residence
- Online Form 41 as per Income Tax Rules, 2026, with requisite self-declarations
TDS will be deducted at the rate prescribed in a valid lower tax withholding certificate issued under Section 395 of the Act, if such a certificate is provided. Any entity entitled to exemption from TDS must submit valid self-attested documentary evidence in support of the exemption.
Important Notes for Shareholders
Physical Form Shareholders: As mandated by SEBI vide their communication dated January 17, 2024, dividends will be issued in electronic mode only. In case of non-updation of PAN, nomination details, contact details, mobile number, bank account details, or specimen signature in respect of physical folios, dividend shall be paid mandatorily through electronic mode only upon furnishing all the aforesaid details in entirety.
Demat Form Shareholders: Shareholders holding shares in demat mode are requested to ensure that their core banking account details, including IFSC/MICR code, are properly updated with their Depository Participant (DP). In case the dividend credited through electronic mode is rejected for any reason, it will be credited only through electronic mode upon updation of correct bank details. Dividend warrants, cheques, or demand drafts will not be issued in such rejection cases.
All applicable documents, including Form 121, Form 41, and self-declarations, must be submitted through the designated portal on or before May 11, 2026 (Monday). In the event of any income tax demand arising from misrepresentation or inaccuracy of information provided by shareholders, such shareholders will be responsible to indemnify the company. Shareholders are advised to consult their own tax advisors for guidance on the tax provisions applicable to their specific circumstances.
Historical Stock Returns for Sundram Fasteners
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.18% | +2.64% | +15.79% | -7.62% | -9.55% | +19.95% |
How does Sundram Fasteners' total dividend payout for FY2026 compare to previous fiscal years, and what does this signal about the company's future capital allocation strategy?
Given the transition to the Income-Tax Act, 2025 framework, how might the new TDS provisions under Section 393 impact foreign institutional investor appetite for dividend-paying Indian manufacturing stocks?
With SEBI's mandate for electronic-only dividend payments, what percentage of Sundram Fasteners' physical shareholders remain non-compliant with KYC updates, and how could this affect unclaimed dividend liabilities?
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