TGV SRAAC Dividend 2026 – Record Date, Yield, Payment Date

TGV SRAAC Limited, formerly Sree Rayalaseema Alkalies and Allied Chemicals, is the flagship company of the Kurnool-based TGV Group. It makes chlor-alkali products (caustic soda, caustic potash, liquid chlorine), chloromethanes, castor oil derivatives and fatty acids, and sells mostly to industrial buyers in pharma, soaps, textiles and chemicals.

The ShareBazaar Online research desk notes three findings that standard dividend alerts leave out.

• A frozen payout. Profit rose 43%, but the dividend stayed at ₹1 for a fourth straight year, so the payout ratio fell to just 8.1%.
• Free cash flow did not cover it. FY26 free cash flow was only ₹9 Cr against a dividend bill of about ₹10.71 Cr. Capex of about ₹329 Cr absorbed almost all operating cash.
• Depreciation dampened the profit jump. Depreciation rose 86% to ₹164 Cr as new capacity was capitalised, so PAT growth (43%) trailed EBITDA growth (54%).

The "10% dividend" headline is calculated on the ₹10 face value. Measured against the market price, the real return is 0.80%, one-twelfth of what the headline suggests.

At its meeting on 21 May 2026, the TGV SRAAC Limited board approved audited FY26 results and recommended a final dividend of ₹1 per equity share (10%), subject to shareholder approval. On 10 August 2026, the board fixed 18 September 2026 as the record date and scheduled the 44th AGM for 26 September 2026 by video conference.

The company said the dividend will be paid on or before 17 October 2026. The AGM went ahead on 26 September and its outcome was filed with BSE. The company has not published a separate dividend policy commentary for FY26. Management reasoning for keeping the payout flat is Not Disclosed by Company.

Under India's T+1 settlement cycle, the ex-date normally falls on the record date. The exchange corporate-action listing is the final authority. The record date has passed, so shareholders who were on the register as of 18 September 2026 were eligible.

TGV SRAAC Limited paid no dividends from FY15 through FY22. It began paying in FY23 and has paid exactly ₹1 per share every year since. It has made no cuts, no special dividends and no increases.

The flat amount stands out because earnings swung sharply over the same period. EPS fell from ₹33.77 in FY23 to ₹5.67 in FY24 and then recovered to ₹12.31. As a result, the payout ratio moved between 3% and 17.6%. The company seems to treat the dividend as a fixed token rather than a share of profit.

Classification: Consistent Payer (flat, token-level). The record is only four years old, so it cannot yet show how the dividend holds up through a full earnings cycle.

Operating leverage helped: an 11.5% rise in revenue produced 54.3% EBITDA growth as margins widened from 13% to 18%. Depreciation then took a large share of that gain. The 5-year revenue CAGR is 14.1%, but the 3-year figure is -5.7% because FY23 was a peak year. Q4 FY26 profit rose 29% year on year to ₹27.99 Cr, so the momentum continued into the new financial year.

Receivables warning: estimated receivables rose about 17.9% while sales grew 11.5%, and debtor days went from 52 to 55. The gap is small but worth watching.

Verdict: Sustainable. At about ₹10.71 Cr, the dividend is less than 1% of the company's net worth. Even in FY24's trough year, EPS covered it 5.7 times. The weak free cash flow test reflects heavy capex rather than stress. The more realistic risk is that the dividend stays flat, not that it gets cut.

TGV SRAAC has the best ROE and ROCE in this group but the lowest payout ratio. Gujarat Alkalies has the highest yield even though it made a loss in FY26, which is a clear example of yield that is not backed by earnings.

Dividends are taxed at the shareholder's income-tax slab rate. This dividend is paid in FY 2026-27, so TDS falls under Section 393(1) of the Income-tax Act, 2025 (formerly Section 194). The rate is 10% if dividends from one company exceed ₹10,000 in a year, or 20% without a valid PAN. Form 121 replaces Forms 15G and 15H. Non-residents face 20% TDS plus surcharge and cess, or a lower treaty rate.

• Commodity cycle: caustic soda prices drive earnings. Profit fell 83% from FY23 to FY24.
• Diversification risk: the new land development and infrastructure objects could draw capital into unrelated activities.
• Capex intensity: ₹220 Cr of CWIP and thin free cash flow limit room for a higher payout.
• Power cost: electrolysis uses a lot of electricity, so tariff changes directly affect margins.
• Thin institutional ownership: combined FII and DII holding is under 0.2%, which limits liquidity and outside scrutiny.
• Working capital: receivables are growing faster than sales.

• Q2 FY27 margins: whether operating margin holds near 18%.
• Utilisation of new capacity: contribution from the April 2026 chloromethane and potash additions.
• CWIP capitalisation: how fast the ₹220 Cr flows into assets and depreciation.
• Land and infrastructure plans: any disclosed spending under the new objects clause.
• Free cash flow recovery: whether free cash flow once again covers the dividend as capex eases.
• Dividend policy: whether the payout finally grows beyond the flat ₹1.
• Payment credit: confirmation that the dividend is credited by 17 October 2026.

The TGV SRAAC Limited dividend for FY26 is safe but small. The company is keeping about 92% of its profit for capex. Whether that retained cash produces higher returns is the question for shareholders to weigh against the 0.80% yield.

This article is for educational and informational purposes only and is not investment advice or a recommendation to buy, sell or hold any security. ShareBazaar Online is not a SEBI-registered investment adviser or research analyst. Figures come from company filings, BSE disclosures and Screener.in as of 28 September 2026, and computed ratios are the desk's own calculations. Share prices, dates and tax rules may change. Readers should check details against official exchange filings and consult a qualified financial or tax adviser before making decisions.