Elitecon International has announced and executed the payment of a 5% interim dividend for the financial year 2025-26, with a notable twist that underscores the company's commitment to growth and shareholder value.

Dividend Details

Key Highlights

• Selective Dividend Distribution: The company has paid the interim dividend exclusively to non-promoter category shareholders.
• Promoter Waiver: Promoter category shareholders have voluntarily relinquished their entire dividend entitlement.
• Financial Implications: The waiver amounts to approximately INR 47.5 million, which will be retained by the company.

Strategic Rationale

The voluntary waiver by promoter shareholders aims to:

1. Strengthen the company's internal financial resources
2. Support future growth initiatives
3. Enhance long-term value creation for all stakeholders

This move by Elitecon International demonstrates a strategic approach to capital allocation, prioritizing reinvestment in the company over immediate returns for promoter shareholders. It reflects confidence in the company's growth prospects and a commitment to building long-term shareholder value.

For non-promoter shareholders, this decision ensures they receive their declared dividend while potentially benefiting from the company's strengthened financial position and growth initiatives in the future.

Investors and market analysts may view this as a positive signal, indicating management's confidence in the company's future performance and their alignment with the interests of all shareholders.

As Elitecon International moves forward, stakeholders will likely be keen to observe how the company utilizes these retained funds to drive growth and enhance its market position.

Elitecon International reported a robust financial performance for the second quarter ended September 30, 2025, with significant growth in revenue and profitability.

Key Financial Highlights

• Net profit rose 129% year-over-year to ₹202 crore, compared to ₹88 crore in Q2 FY2025
• Revenue increased substantially to ₹5,049 crore from ₹791 crore, marking a 538% growth
• EBITDA grew to ₹222 crore versus ₹82 crore in the previous year, up 171%

Revenue and Profitability

Elitecon International witnessed exceptional revenue growth, with total income from operations surging to ₹5,056.75 crore in Q2 FY2026, compared to ₹802.42 crore in the same period last year. This substantial increase was primarily driven by strong performance in both the Tobacco Products and FMCG Products segments.

The company's profitability saw a significant boost, with profit before tax rising to ₹224.34 crore, up from ₹95.45 crore in Q2 FY2025. Net profit for the quarter stood at ₹201.96 crore, representing a 129% increase year-over-year.

Segment Performance

The FMCG Products segment emerged as the primary growth driver, with an extraordinary year-over-year revenue increase of 3,686%.

Operational Efficiency

Despite the substantial revenue growth, Elitecon International experienced a decline in its EBITDA margin, which decreased to 4.39% from 10.37% in the same quarter last year. This suggests that while the company has significantly expanded its operations, it may face challenges in maintaining operational efficiency at the same level as its smaller scale operations.

Balance Sheet and Cash Flow

As of September 30, 2025, Elitecon International reported:

• Total assets of ₹5,052.31 crore
• Equity share capital of ₹159.85 crore
• Cash and cash equivalents of ₹60.99 crore

The company's cash flow from operations for the half-year ended September 30, 2025, stood at ₹1,206.91 crore, indicating strong operational cash generation.

Dividend Announcement

The company's board has declared an interim dividend of ₹0.05 per equity share for the financial year 2025-26, with the record date set as November 12, 2025.

Conclusion

Elitecon International's strong performance in Q2 FY2026 demonstrates its ability to capitalize on market opportunities and drive substantial growth across its business segments. As the company continues to expand, managing operational efficiency and maintaining profitability margins will be key focus areas for sustained success.