Bhagiradha Chemicals Dividend 2026 | ₹0.15 Per Share | Record Date 23 July 2026

Dividend Details

Key Numbers

Other Board Decisions

• Unmodified (clean) statutory audit opinion on both standalone and consolidated results from R. Kankaria & Uttam Singhi, Chartered Accountants.
• Re-appointment of M/s Sagar & Associates as Cost Auditors for FY 2026-27.
• Re-appointment of CA Sunesh Agarwal as Internal Auditor for FY 2026-27.
• Share Transfer Books and Register of Members closed from Friday, July 24, 2026 to Friday, July 31, 2026 (both days inclusive).
• Mr. Jagannatham Puttaparthi appointed as scrutinizer for AGM e-voting.

Management Commentary

Not Disclosed by Company. The board outcome intimation filed with BSE and NSE contains no qualitative management commentary on the dividend decision, capital allocation policy, or outlook. The only narrative disclosures in the filing are technical accounting notes on the concessional 22% tax rate election, the four new labour codes notified on November 21, 2025 (assessed as not material), and the single reportable segment classification.

Investors looking for management's reasoning will need to wait for the FY 2025-26 Annual Report and the Director's Report, which the board also approved on May 19, 2026.

On the Ex-Date

The company disclosed a record date but did not separately disclose an ex-date. Under India's T+1 rolling settlement cycle, the exchange-notified ex-date for a corporate action is ordinarily the same trading day as the record date. On that basis the ex-date is 23-07-2026, and you must own the shares by the close of 22-07-2026 for the trade to settle in time. Always confirm against the NSE and BSE corporate action circulars before trading around the date.

On the Payment Date

The filing states only that the dividend, if approved, will be paid "within the timelines prescribed under the law." Under Section 127 of the Companies Act, 2013, a declared dividend must be paid within 30 days of declaration. Since declaration happens at the AGM on 31-07-2026, the outer limit is on or around 30-08-2026. The company has not committed to a specific date.

For context, last year's ₹0.15 dividend had a record date of 14-08-2025 and was paid on 21-09-2025 (source: TipRanks dividend history).

What the Pattern Shows

• No fixed dividend policy is visible. The per-share amount has moved between ₹0.09 and ₹0.30 with no discernible formula tied to earnings.
• Gaps exist. There is no dividend recorded for FY 2020-21 in the company's own dividend disclosure listing, which jumps from 2019-20 to 2021-22.
• Cuts have happened. The payout fell from ₹0.30 (FY 2022-23) to ₹0.10 (FY 2023-24) — a two-thirds reduction — before recovering to ₹0.15.
• Frequency has varied. Interim dividends appeared in FY22 and FY23; since FY24 the company has paid a single annual final dividend.
• FY26 is a hold, not a raise. ₹0.15 matches FY25 exactly, as the company confirms in Note 6 to the standalone results.

Classification

The two consecutive years at ₹0.15 are the closest thing to stability in the record. Whether that hardens into a floor is something only future years will answer.

Profit vs Cash: The Conversion Gap

Consolidated net profit was ₹18.17 crore. Consolidated operating cash flow was ₹12.01 crore. The OCF-to-PAT conversion ratio is 0.66x — for every rupee of reported profit, only about 66 paise arrived as operating cash.

That said, this is a sharp improvement. In FY25 the group generated negative ₹52.80 crore of operating cash against a reported profit of ₹13.86 crore. Working capital absorption narrowed from ₹80.58 crore to ₹29.41 crore. The direction is right; the level is still not comfortable.

On the parent alone the picture is healthier: standalone OCF of ₹35.78 crore against standalone PAT of ₹26.24 crore, a conversion of 1.36x. The cash strain sits in the subsidiary.

Receivables vs Revenue — Flag This

Consolidated trade receivables stand at ₹204.68 crore, up 17.7% from ₹173.86 crore. Revenue grew faster at 21.7%, so receivables did not outpace sales — a technical positive.

But look at the absolute level. Receivables equal 38.2% of annual revenue, which translates to roughly 139 days of sales outstanding (down marginally from 144 days). More than a third of a year's billings are sitting uncollected on the balance sheet.

In agrochemicals, extended credit to distributors ahead of the Kharif and Rabi seasons is normal. But at 139 days, the working capital cycle is the single largest reason profit is not converting into cash, and it is the number to watch every quarter.

Ratios (Computed)

ROE and ROCE computed on average balances. EBITDA and EBIT computed from reported line items.

Reading the Balance Sheet

The single biggest movement is the transfer of ₹193.59 crore out of Capital Work in Progress and the addition of ₹335.78 crore to Property, Plant & Equipment. In plain terms, the Bheema Fine Chemicals plant at Kadechur, Karnataka has been substantially capitalised. That is exactly why depreciation jumped 51% and why finance costs jumped 145% — once an asset is commissioned, interest can no longer be capitalised into it and starts hitting the P&L.

Leverage is still moderate in absolute terms. Net debt to equity of 0.30x is not alarming for a chemicals manufacturer. But the trajectory matters: net debt nearly quadrupled in one year, and interest coverage more than halved from 4.55x to 2.21x. Net debt to EBITDA of 3.71x is at the upper end of what most lenders consider comfortable.

Returns are the weak spot. ROE of 2.63% and ROCE of 4.53% are below what a fixed deposit currently offers. The company has ₹698 crore of shareholder equity generating ₹18 crore of profit. Whether the new capacity fixes that ratio is the whole investment question.

Test 1 — Can the company afford it?

Yes, comfortably. Cash and bank balances of ₹18.92 crore cover the ₹1.95 crore dividend 9.7 times. Even after the payout, the company retains roughly ₹17 crore of liquidity. There is no affordability question at this size.

Verdict: Pass

Test 2 — Is it covered by free cash flow?

No. Consolidated FCF was negative ₹148.13 crore. On the parent alone, standalone FCF was positive ₹22.65 crore (OCF ₹35.78 crore less capex ₹13.13 crore), giving standalone FCF coverage of 11.6x. Since dividends are legally paid out of the standalone entity's profits, this matters — but the group as a whole is still cash-negative.

Verdict: Mixed — pass on standalone, fail on consolidated

Test 3 — Is debt rising while dividends are paid?

Yes, sharply. Gross borrowings rose from ₹84.45 crore to ₹231.05 crore. Net debt rose 288%. Interest coverage fell from 4.55x to 2.21x. This is the clearest negative in the analysis.

Verdict: Fail

Test 4 — Is the earnings trend supportive?

Mixed. Reported consolidated PAT rose 31.1%, but pre-tax profit fell 16.4% and the improvement came from a tax rate that dropped from 45.1% to 13.9% — not repeatable at that magnitude. Offsetting this, EBITDA rose 54.6% with margins up 227 basis points, and Q4 PBT more than doubled.

Verdict: Mixed — operating trend improving, bottom-line quality weak

Shareholding Pattern (March 2026)

Source: public shareholding data as reported by Screener, Groww and Bajaj Broking for the quarter ended March 2026. Promoter holding was unchanged from December 2025.

Dividend Distribution by Category

Computed as shareholding percentage × total dividend outflow. Figures rounded.

Worked Example — Generic (₹10 per share)

Investor holds 1,000 shares, dividend ₹10 per share, tax slab 30%.

TDS is nil here because ₹10,000 does not exceed the ₹10,000 threshold. The full ₹3,120 must be discharged by the investor directly.

Worked Example — Actual BHAGCHEM Dividend

Investor holds 1,000 shares, dividend ₹0.15 per share, tax slab 30%.

To cross the ₹10,000 TDS threshold on this dividend, an investor would need to hold more than 66,667 shares, costing roughly ₹1.93 crore at current prices.

1. Leverage and Interest Burden

Gross borrowings rose 173.6% to ₹231.05 crore and finance costs rose 145.5% to ₹17.46 crore. Interest coverage fell from 4.55x to 2.21x. Net debt to EBITDA of 3.71x leaves limited headroom. Any rate increase or delay in the subsidiary's ramp-up puts direct pressure on profitability.

2. Subsidiary Execution Risk

The gap between standalone PAT of ₹26.24 crore and consolidated PAT of ₹18.17 crore implies Bheema Fine Chemicals lost roughly ₹8.07 crore in FY26. The parent has invested ₹367.53 crore into the subsidiary during the year. If the Kadechur plant does not reach planned utilisation, that capital earns nothing while its depreciation and interest continue.

3. Working Capital Intensity

Receivables of ₹204.68 crore represent 139 days of sales. Combined with inventory of ₹145.75 crore, over ₹350 crore is locked in working capital against equity of ₹698 crore. Any distributor default or credit-cycle stretch in the agrochemical channel translates directly into borrowing need.

4. Single-Segment Concentration

The company reports one reportable segment: Crop Protection Chemicals, under Ind-AS 108. There is no diversification cushion. Agrochemical demand is tied to monsoon quality, crop acreage, farm-gate prices and global generic pricing — all outside management's control. Chinese generic supply pressure has been a persistent headwind for Indian technical manufacturers.

5. Return on Capital Well Below Cost of Capital

Consolidated ROE of 2.63% and ROCE of 4.53% sit below the company's own borrowing cost. Until the expanded asset base generates returns above the cost of debt, every additional rupee of leveraged capex destroys rather than creates value for equity holders.

6. Earnings Quality and Valuation

FY26 profit growth of 31.1% came from an effective tax rate falling from 45.1% to 13.9%, not from operations — pre-tax profit actually fell 16.4%. At roughly 206x trailing consolidated earnings, the share price embeds substantial expectations about the Bheema ramp-up. Disappointment on that ramp-up has a long way to be re-rated.

7. Approval and Timing Risk on the Dividend Itself

The dividend is recommended, not declared. It requires shareholder approval at the AGM on 31-07-2026. The company has also not committed to a payment date, stating only that payment will occur within legally prescribed timelines. Shareholders should not treat the ₹0.15 as received until the AGM vote passes and credit appears.

8. Regulatory and Compliance Environment

The four new labour codes notified on November 21, 2025 have been assessed by the company as not materially impactful based on internal assessment, but the company itself notes it continues to monitor finalisation of Central and State Rules. Pesticide manufacturing also carries ongoing environmental clearance, effluent handling and product registration obligations across multiple jurisdictions.

1. Bheema Fine Chemicals Capacity Utilisation

The Kadechur plant is cleared for 9,002 MTPA versus the parent's Ongole capacity of 3,250 MTPA. Watch quarterly commentary for actual utilisation percentages. The gap between standalone and consolidated PAT each quarter is the cleanest available proxy for whether the subsidiary is moving toward breakeven.

2. Operating Cash Flow Conversion

Consolidated OCF-to-PAT was 0.66x in FY26, up from deeply negative in FY25. Watch whether FY27 pushes this above 1.0x. Sustained conversion above 1.0x would be the first real evidence that the group can fund itself.

3. Days Sales Outstanding

Currently 139 days, marginally improved from 144 days. Track receivables as a percentage of trailing twelve-month revenue each quarter. A move below 120 days would materially change the free cash flow picture; a move above 150 days would signal channel stress.

4. Peak Debt and the Deleveraging Path

Net debt is ₹212.13 crore. With CWIP down to ₹94.22 crore, the bulk of the capex programme appears complete. Watch whether FY27 shows net debt flattening and then declining. Also watch finance costs, which will annualise at a higher run-rate than the reported ₹17.46 crore since the plant was capitalised mid-year.

5. EBITDA Margin Trajectory

Consolidated EBITDA margin expanded from 8.39% to 10.66%. Given raw materials are ~63.4% of revenue, margin direction is highly sensitive to intermediate pricing. Watch whether the Q4 momentum — revenue up 28.9% year-on-year with PBT more than doubling — carries into FY27 quarters.

6. Effective Tax Rate Normalisation

FY26's 13.9% effective tax rate is well below the concessional 22% regime the company has elected. Deferred tax credits are not repeatable. Model FY27 profit on a normalised rate closer to 25% including surcharge and cess, and see whether the underlying business still shows growth on that basis.

7. Promoter Holding and Institutional Flows

Promoter holding has been stable at 19.60% from December 2025 to March 2026. FII holding is negligible at 0.14% and DII at 3.02%. Any pledging, further dilution, or a meaningful step-up in institutional participation would each carry information about how the market views the expansion.

8. Next Year's Dividend Decision

Two consecutive years at ₹0.15 is the first sign of consistency in a historically irregular record. A third consecutive year at or above ₹0.15 would establish a genuine floor. A cut back toward the ₹0.10 level seen in FY24 would confirm the payout is discretionary and cash-cycle dependent.

Positives

• Revenue growth of 21.7% with EBITDA margin expansion of 227 basis points to 10.66%.
• Operating cash flow turned positive at ₹12.01 crore from negative ₹52.80 crore.
• Working capital absorption narrowed sharply from ₹80.58 crore to ₹29.41 crore.
• Q4 was the strongest quarter — revenue up 28.9%, PBT more than doubled.
• Dividend covered 9.33x by earnings and 9.7x by cash — no affordability concern.
• Clean, unmodified audit opinion on both standalone and consolidated results.
• Capex programme appears near completion, with CWIP down 67.3%.
• 77 paise in every rupee of dividend flows to public shareholders, not promoters.

Negatives

• Net debt up 288% to ₹212.13 crore in a single year.
• Interest coverage halved from 4.55x to 2.21x.
• Consolidated free cash flow of negative ₹148.13 crore.
• Pre-tax profit down 16.4% — profit growth is a tax-line story.
• ROE of 2.63% and ROCE of 4.53%, both below borrowing cost.
• Subsidiary appears loss-making by roughly ₹8.07 crore.
• Receivables at 139 days of sales; over ₹350 crore locked in working capital.
• Trailing P/E of approximately 206x on consolidated earnings.
• Payment date Not Disclosed by Company; dividend still subject to AGM approval.