HPALNSEHP Adhesives LimitedHighNeutral
Announced Tue, 12 May · 19:32 IST

HP Adhesives Limited has informed the Exchange that Board of Directors at its meeting held on May 12, 2026, recommended Final Dividend of Rs. 0.40 per equity share.

Pat NegativeExceptional ItemEbitda Margin CompressionRevenue DeclineResults View source PDF

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Price reaction · full curve 14 horizons · vs prior close
-13.8%1-day move
₹42.90
prior close
₹39.31
base price
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AI summary

HP Adhesives reported a significant decline in profitability for FY26 with consolidated PAT falling 62% to Rs. 697.70 Lakhs (EPS Rs. 0.76) compared to Rs. 1,824.36 Lakhs (EPS Rs. 1.99) in FY25. Revenue from operations remained nearly flat at Rs. 24,927.52 Lakhs vs Rs. 25,979.33 Lakhs. The board recommended a final dividend of Rs. 0.40 per share (20% on Rs. 2 face value), subject to shareholder approval. A major fire incident on January 17, 2026 at Unit I manufacturing plant resulted in an estimated loss of Rs. 2,498.50 Lakhs recognised under exceptional items, with insurance claim receivable pending final assessment. The statutory auditor issued an unmodified opinion on the financial results. Operating cash flow was Rs. 707.97 Lakhs, though cash balances declined sharply from Rs. 313.73 Lakhs to Rs. 88.97 Lakhs.

Likely market impact

The sharp 62% decline in PAT despite stable revenue signals margin compression and operational challenges from the fire incident. Shareholders may see the dividend as a positive signal, but the significant profit decline and uncertainty around insurance recovery may weigh on the stock near term.