Axtel Industries , a prominent player in the process engineering equipment sector for the food processing industry, has reported a significant decline in its financial performance for the first quarter. The company's latest financial results reveal a downturn in key metrics, while simultaneously announcing a substantial dividend recommendation.

Q1 Financial Performance

Axtel Industries experienced a notable decrease in its financial indicators for the first quarter:

The company's revenue saw a substantial decline of 39.15% year-over-year, dropping from ₹447.00 crore to ₹272.00 crore. This decrease in top-line performance had a cascading effect on other financial metrics.

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) fell sharply by 72.73%, from ₹55.00 crore in the previous year's Q1 to ₹15.00 crore in the current quarter. Consequently, the EBITDA margin contracted significantly, declining from 12.26% to 5.58%.

Net profit also took a hit, decreasing by 53.66% from ₹41.00 crore to ₹19.00 crore year-over-year.

Dividend Announcement

Despite the challenging quarter, Axtel Industries' Board of Directors has made a noteworthy dividend recommendation. The company has proposed an additional dividend of ₹6.00 per share (60%) for the financial year 2024-25. This recommendation, combined with the interim dividend of ₹5.00 per share (50%) declared on March 15, 2025, brings the total proposed dividend for FY 2024-25 to ₹11.00 per share, representing a 110% dividend payout.

Other Corporate Updates

The company also announced the appointment of M/s. Ruchita Patel & Associates, Company Secretaries, Vadodara, as Secretarial Auditors for a period of five consecutive years from FY 2025-26 to FY 2029-30, subject to shareholders' approval at the upcoming Annual General Meeting.

Axtel Industries continues to operate in a single segment, focusing on process engineering equipment for the food processing industry. The company's management and auditors have expressed an unmodified opinion on the financial results for the quarter ended June 30, 2025.

As Axtel Industries navigates through this period of financial challenges, stakeholders will be keenly watching how the company plans to address the decline in performance while maintaining its commitment to shareholder returns.

Axtel Industries Limited , a leading manufacturer of process engineering equipment for the food processing industry, has announced a significant increase in its dividend payout, demonstrating a strong commitment to enhancing shareholder value.

Dividend Boost

The Board of Directors of Axtel Industries, in a meeting held on July 16, 2025, recommended an additional dividend of 6.00 rupees per share for the financial year 2024-25. This recommendation comes on top of an earlier interim dividend of 5.00 rupees per share declared on March 15, 2025.

Total Dividend Payout

With this latest announcement, the total dividend for the financial year 2024-25 stands at an impressive 11.00 rupees per share, representing a 110% dividend on the face value of the company's shares. The breakdown is as follows:

• Interim Dividend: 5.00 rupees per share (50%)
• Additional Final Dividend: 6.00 rupees per share (60%)
• Total Dividend: 11.00 rupees per share (110%)

Financial Performance

The dividend announcement coincides with the release of Axtel Industries' unaudited financial results for the quarter ended June 30, 2025. Key highlights include:

Despite a year-on-year decrease in revenue and profit for the quarter, the company's decision to increase the dividend payout suggests confidence in its financial stability and future prospects.

Corporate Governance

In addition to the dividend announcement, the Board has recommended the appointment of M/s. Ruchita Patel & Associates, Company Secretaries, Vadodara, as Secretarial Auditors for a period of five consecutive years from FY 2025-26 to FY 2029-30, subject to shareholders' approval at the upcoming Annual General Meeting.

The increased dividend payout is likely to be well-received by Axtel Industries' shareholders, reinforcing the company's commitment to delivering value even in challenging market conditions. Investors and market analysts will be closely watching the company's performance in the coming quarters to assess the sustainability of this generous dividend policy.