Vinati Organics has recommended a final dividend of Rs. 8.50 per share for the financial year ended March 31, 2026, subject to shareholder approval at the ensuing Annual General Meeting. The company will deduct tax at source (TDS) on this dividend in accordance with the Income Tax Act, 2025, as amended by the Finance Act, 2026. Shareholders must submit specific documentation by July 25, 2026, to ensure the appropriate tax rate is applied.

The Board of Directors approved the dividend recommendation at its meeting held on May 12, 2026. The applicable TDS rate will depend on the residential status of the shareholder and the valid documents submitted to the company. Failure to provide the necessary information by the deadline will result in tax deduction at the highest prescribed rate.

Tax Deduction Rates for Resident Shareholders

For resident shareholders, the standard TDS rate is 10% on the dividend amount. However, no tax will be deducted if the aggregate dividend paid to an individual during the financial year does not exceed Rs. 10,000. Additionally, resident individuals can avoid TDS by submitting Form 121, provided eligibility conditions are met.

Tax will be deducted at 20% if the shareholder's PAN is not available, invalid, or inoperative. Specific categories of resident shareholders, such as insurance companies, mutual funds, and Alternative Investment Funds (AIF), can claim nil or lower tax rates by submitting a self-declaration and supporting documents, including a self-attested copy of their PAN card.

Guidelines for Non-Resident Shareholders

Non-resident shareholders, including Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs), face a standard TDS rate of 20%, plus applicable surcharge and cess. These shareholders may opt for benefits under the Double Taxation Avoidance Agreement (DTAA) if more favorable. To claim DTAA benefits, non-residents must submit a self-attested copy of their PAN (or a declaration if unavailable), a valid Tax Residency Certificate (TRC), and electronic Form 41 from the income-tax portal.

A self-declaration certifying tax residency, beneficial ownership, and the absence of a permanent establishment in India is also required. FIIs and FPIs must provide a self-attested copy of their SEBI registration certificate. If the relevant documents are not submitted, the 20% rate plus surcharge and cess will apply.

Compliance and Documentation Deadlines

Shareholders holding shares in multiple accounts under different statuses or categories with a single PAN should note that the highest applicable tax rate will be considered for their entire holding. The company has specified July 25, 2026, as the deadline for submitting all forms and documents via the RTA's website. No communication regarding tax determination will be accepted after this date.

The company reserves the right to reject incomplete or discrepant documents. In cases where tax is deducted at a higher rate due to missing or defective information, shareholders may file a return of income to claim a refund. The company will email a soft copy of the TDS certificate to the registered email ID post-payment, and shareholders can view the credit in Form 168 on the income-tax e-filing portal.

Vinati Organics reported a 27% quarter-on-quarter rise in profit after tax to ₹137 crore for the quarter ended March 31, 2026, driven by operational improvements and a strong customer-centric approach. The company remains debt-free and has a treasury of approximately ₹190 crore as of March 31, 2026. The Board of Directors has recommended a dividend of ₹8.50 per equity share of face value of ₹1 for the financial year 2025-26, subject to shareholder approval.

On a standalone basis, net income, including other income, increased by 17% to ₹631 crore in Q4FY26 from ₹538 crore in the previous quarter. EBITDA grew by 20% to ₹203 crore compared to ₹169 crore in Q3FY26. For the full year, net income remained stable at ₹2,281 crore, while EBITDA grew by 17% to ₹741 crore and PAT increased by 18% to ₹488 crore compared to the previous year.

On a consolidated basis, net income rose 16% to ₹624 crore in Q4FY26, with EBITDA growing 15% to ₹191 crore and PAT increasing 23% to ₹123 crore. For the full year, consolidated net income was stable at ₹2,280 crore, EBITDA grew 13% to ₹707 crore, and PAT increased 9% to ₹444 crore.

Operational Performance

The company's global market share in ATBS remained robust, with expectations of approximately 15% to 20% volume growth in FY 2027. The butyl phenols segment delivered steady performance, while IB and HP-MTBE are expected to achieve double-digit growth in FY 2027. The customized products segment recorded 10% year-on-year growth, and the antioxidants business delivered 15% revenue growth in FY 2026. IBB volume declined by approximately 20% compared to FY 2025 due to raw material unavailability, which has since been resolved.

Financial Highlights

Capital Expenditure and Outlook

The company incurred approximately ₹270 crore in capex in FY 2026, including investments in its subsidiary VOPL for capacity expansion. It has earmarked approximately ₹200 crore to ₹250 crore of capex for FY 2027. Management targets approximately 15% volume growth at the company level in FY 2027 and maintains a long-term EBITDA margin outlook of 26% to 27%. The R&D team is working on new products in niche segments such as fragrance, personal care, and food additives, with revenue contributions expected from FY28.