Vishnu Chemicals Limited will hold its 33rd Annual General Meeting (AGM) on Friday, August 28, 2026, at 11.00 a.m. IST via video conferencing or other audio visual means. The meeting aims to finalize key corporate governance matters for the financial year ended March 31, 2026, including the declaration of a final dividend and the appointment of new statutory auditors, ensuring continuity in compliance and shareholder returns.

The Board of Directors has recommended a final dividend of ₹0.30 per equity share of ₹2/- each, representing a 15% payout for FY26. The record date for determining dividend entitlement is fixed at Friday, August 21, 2026. If approved by shareholders, the dividend will be paid within 30 days of the AGM exclusively in electronic mode, in line with SEBI regulations effective from November 18, 2025. Physical shareholders must update their bank mandates by August 14, 2026, to ensure timely receipt.

A significant governance change involves the replacement of Statutory Auditors. M/s Jampani & Associates, Chartered Accountants, will complete their second consecutive five-year term upon the conclusion of this AGM. The Audit Committee has recommended the appointment of M/s M. Anandam & Co Chartered Accountants for a first term of five years, from the conclusion of the 33rd AGM until the 38th AGM. The proposed remuneration for the new auditors is ₹21.25 lakhs plus taxes and out-of-pocket expenses for FY27, comprising ₹19.00 lakhs for statutory audit services and ₹2.25 lakhs for tax audit services.

The AGM agenda also includes the re-appointment of Mr. Nagabhushan Bhagwati as an Independent Director for a second term of four years, from August 28, 2026, to August 27, 2030. Additionally, shareholders will ratify the remuneration of M/s Sagar & Associates, Cost Accountants, for cost audit services for FY27, capped at ₹1.05 lakhs per annum plus applicable taxes. Mrs. Ch. Manjula retires by rotation and offers herself for re-appointment as a Director.

Key AGM Details

Auditor Remuneration Comparison

The shift in statutory auditors brings a marginal increase in audit fees. The following table compares the remuneration proposed for the new auditor against the fees paid to the retiring auditor for the previous financial year.

The increase of ₹2.05 lakhs, or approximately 10.68%, is attributed to the scope and regulatory requirements associated with the audit of the company’s operations. The Board views the proposed remuneration as commensurate with the services to be rendered by M/s M. Anandam & Co, which holds a valid Peer Review Certificate from the Institute of Chartered Accountants of India.

What the Numbers Show

The dividend recommendation of ₹0.30 per share indicates a consistent approach to shareholder returns, although the absolute payout remains modest relative to the face value. The transition of statutory auditors after two consecutive terms is a standard compliance requirement under Section 139 of the Companies Act, 2013. The slight rise in audit fees suggests an expanded scope or increased complexity in the audit process, which is typical when transitioning to a new firm that may require additional initial diligence. The re-appointment of Independent Director Nagabhushan Bhagwati ensures stability in the board’s oversight committee, particularly given his background as a Fellow Member of ICAI and Insolvency Professional.

Vishnu Chemicals Limited reported a 24.9% year-on-year increase in operating revenue to ₹433.4 crore for the first quarter of fiscal year 2027 (Q1FY27), driven by a strategic shift toward higher-value derivatives and improved realizations in its barium segment. Profit after tax (PAT) rose 23% to ₹39.6 crore, reflecting the underlying resilience of the business despite headwinds from rising ocean freight costs due to geopolitical tensions in West Asia.

The company’s EBITDA grew 17.5% to ₹65.5 crore, though margins contracted slightly to 15.1% from 16.1% in Q1FY26, impacted by a one-time retrospective adjustment of ₹8 crore in baryte prices for the barium segment and higher logistics expenses. Management highlighted that the logistics cost as a percentage of revenue stood at 9–10% in Q1 but could rise to over 20% in the subsequent quarter due to ongoing supply chain disruptions.

Financial Highlights

Strategic Shifts and Segment Performance

Siddartha Cherukuri, Joint Managing Director, emphasized a deliberate move away from base specialty chemicals toward higher-value derivatives in the chromium business. High-value derivatives now contribute nearly 50% of chromium sales, up from 40% in FY26, improving blended realizations. The barium segment continues to perform consistently with optimum capacity utilization, while the strontium business generated ₹25 crore in revenue, operating at 50% capacity against a total installed capacity of 10,000 tonnes.

The company is also advancing its backward integration strategy. Operations at its South African mine are expected to commence in the second half of FY27, following refurbishment and stabilization activities. This vertical integration aims to secure raw material supply and enhance gross margins, which currently stand at 44–45%, with a target of reaching 50% by year-end.

Capital Allocation and Future Outlook

Vishnu Chemicals plans a capital expenditure outlay of ₹200–250 crore for FY27. Key investments include:

• DMSO Project: ₹205–240 crore for Dimethyl Sulfoxide production, targeting import substitution in pharma and agro sectors.
• Chromium Derivatives: ₹50 crore to expand Chrome Oxide Green capacity, supported by a new long-term supply agreement with a European client.
• Barium Backward Integration: ₹40 crore to complete expansion projects.
• South Africa Mine: ₹20–25 crore for limited capital improvements.
• Solar Energy: ₹5–6 crore to expand solar power capacity from 5 MW to 20 MW, expected to reduce average power costs by 15–20%.

What the Numbers Show

The divergence between revenue growth (24.9%) and EBITDA growth (17.5%) highlights the pressure from rising input and logistics costs, partially offset by favorable product mix shifts. The one-time ₹8 crore charge in the barium segment masks underlying operational strength, as management maintains that sustainable EBITDA margins for barium remain around 25%. The significant investment in DMSO and Chrome Oxide Green signals a pivot toward higher-margin, specialty chemicals, aiming to reduce dependency on commodity-driven cycles and improve long-term profitability visibility.