Board recommended final dividend for the FY 2025-26.
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HP Adhesives board recommended a final dividend of ₹0.40 per share (20% on face value of ₹2) for FY 2025-26, subject to shareholder approval at the ensuing AGM. The dividend is maintained at the same rate as the previous year (₹0.40 per share), despite a sharp decline in profitability. PAT fell to ₹688.22 Lakhs from ₹1,784.03 Lakhs in the prior year — a 61% drop — impacted by a fire incident at Unit-I in January 2026 resulting in an estimated loss of ₹2,498.50 Lakhs (exceptional item). Total income for FY 2026 stood at ₹25,210.46 Lakhs, largely flat versus the previous year. EPS for the year came in at ₹0.76 versus ₹1.99 in FY 2025. The company has insurance coverage for the fire-related losses, with claim assessment ongoing.
The company has held the dividend steady despite a steep fall in profits, which may be viewed as a confidence signal but also raises questions about sustainability given the large exceptional loss from the fire incident. Shareholders should watch for the record date announcement and monitor the insurance claim settlement.