Board approves final dividend subject to approval of Shareholders at the ensuing AGM
HIKAL · price
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Hikal Ltd's Board has recommended a final dividend of 20% (₹0.40 per share) for FY 2025-26, subject to shareholder approval at the AGM. Total dividend for the year is 30% (₹0.60 per share), including an interim dividend of 10% (₹0.20) paid in March 2026. This is a significant reduction from the previous year's dividend of 70% (₹1.40 per share). The company reported a net loss of ₹487 million for FY 2025-26, compared to a profit of ₹909 million in the previous year, primarily due to exceptional items including a ₹471 million impairment charge for plant repurposing and ₹380 million in labour code implementation costs. Revenue from operations declined to ₹17,126 million from ₹18,598 million, impacted by USFDA warning letter issues at the Jigani facility.
The sharp dividend cut from 70% to 30% reflects the company's need to conserve cash amid significant losses and exceptional charges. Shareholders should expect lower dividend income this year, though the board's decision to maintain any dividend signals confidence in the company's turnaround prospects.