Galaxy Medicare (GML) Dividend 2026 — ₹0.35 Final, Record Date 11 Sep

Galaxy Medicare Limited (NSE: GML) has fixed 11 September 2026 as the record date for its final dividend of ₹0.35 per equity share for FY2025–26, on a face value of ₹10 (a 3.5% payout on face value). This is the company’s second payout of the year — an interim dividend of ₹0.35 was already paid in December 2025, taking the FY26 total to ₹0.70 per share. The final dividend is subject to member approval at the 34th AGM on 28 September 2026.

Galaxy Medicare Limited, incorporated in 1992 and based in Bhubaneswar, Odisha, manufactures and exports medical devices, Plaster of Paris (POP) bandages and surgical dressings, with ISO 13485:2016 and CE certifications. It is a nano-cap healthcare company listed on the NSE Emerge (SME) platform, where it debuted in September 2025 after an IPO priced at ₹54 per share that raised ₹22.31 crore.

With FY26 consolidated revenue of ₹40.0 crore and a market capitalisation near ₹25–26 crore, Galaxy Medicare is a small, promoter-led business. Promoters (the Das family) hold 72.43%, with no FII or DII presence — a profile typical of a recently listed SME, and one that materially shapes how this dividend should be read.

FY26 was a flat operating year dressed up by a strong balance sheet. Consolidated revenue rose just +2.0% to ₹40.0 crore, while EBITDA fell 10.6% to ₹4.32 crore and the operating margin slipped from 11.1% to 9.4%. Net profit edged up +1.5% to ₹3.42 crore, helped by a swing in finance income rather than core operations.

The standout tension: profit rose but EPS fell. That is the footprint of IPO dilution — the fresh issue of 33.08 lakh shares spread a similar profit over a larger share base.

Galaxy Medicare’s dividend record is short because it listed only in September 2025. Both payouts below belong to FY2025–26.

No dividends were declared pre-listing in the public record. A one-year track record is too short to judge consistency.

The headline “3.5% dividend” is a face-value number, not what an investor earns. At the current market price near ₹16.65, the final dividend is worth about 2.1%, and the full FY26 payout of ₹0.70 about 4.2%. Part of that optically high yield exists only because the share price has fallen roughly 69% from its ₹54 IPO price — a falling denominator inflates yield.

The more important signal is cash. The FY26 total payout of about ₹1.06 crore is comfortably covered by earnings (3.2x) and operating cash flow (1.9x), but not by free cash flow (₹0.44 crore — roughly 0.4x coverage). In a year flush with ₹14 crore of IPO proceeds, the shortfall is easily absorbed; investors should simply note the dividend is not yet self-funding from surplus cash generation.

Galaxy Medicare has disclosed a growth plan: an agreement with the Odisha government to set up a new pharmaceutical and medical-devices facility in Khordha district, and IPO proceeds earmarked for machinery and working capital. A capex cycle typically competes with dividends for cash.

The company has not disclosed any formal dividend policy or guidance on future payouts. With a one-year public track record and expansion ahead, the durability of a ₹0.70 annual run-rate is unproven. The outlook here describes disclosed facts and their implications only — it is not a forecast of future corporate actions.

Per Galaxy Medicare’s NSE filing under Regulation 42 of SEBI (LODR), 2015, the Board recommended a final dividend of ₹0.35 per equity share (face value ₹10) for the year ended 31 March 2026 at its meeting on 29 May 2026. The company fixed 11 September 2026 as the record date to determine eligible members.

Under India’s T+1 settlement, the ex-date and record date fall on the same day. To be eligible, shares must be held before the ex-date of 11 September 2026.

The gap between the quoted percentage and real yield is the single most useful thing to understand here. The “3.5%” is calculated on the ₹10 face value, not the market price.

A real yield near 4% (full year) is respectable, but a chunk of it is the arithmetic of a share price that has fallen ~69% since listing. Rising yield driven by a falling price is not the same as a growing dividend.

With only two payouts on record — both in FY26 — Galaxy Medicare cannot yet be classified as a consistent, cyclical or irregular payer. There is no multi-year trend, no history of growth or cuts, and no special dividends to assess. It is best described as a new, unproven payer.

The pattern so far — a ₹0.35 interim and a matching ₹0.35 final in the first full year post-IPO — suggests management intends to share profits, but one year is insufficient to infer a durable policy. Investors tracking income should watch whether the ₹0.70 run-rate repeats in FY27.

The operating-leverage picture is the weak spot. Over FY26, revenue grew 2.0% but EBITDA fell 10.6% — costs outpaced sales, compressing the operating margin to 9.4% from 11.1%. Net profit stayed roughly flat (+1.5%) only because finance costs reversed into a small finance income after IPO-funded debt reduction.

3-year revenue CAGR ~8.6%; PAT CAGR ~29.6% off a low FY23 base. Momentum has clearly cooled in FY26.

Reported profit and cash told different stories in FY26. PAT held at ₹3.42 crore, but operating cash flow fell to ₹2.00 crore (from ₹3.96 crore), dragged by a working-capital build-up of roughly ₹2.26 crore. After capex of ₹1.56 crore, free cash flow was only about ₹0.44 crore.

So how is a ₹1.06 crore full-year dividend funded? Not from FY26 free cash flow, which falls short. It is covered by earnings and the large cash cushion from the IPO — the cash flow shows ₹14.19 crore of fresh equity raised. The dividend is affordable today, but it is being paid from a balance sheet topped up by investors, not yet from recurring surplus cash.

The balance sheet is the clear positive. Post-IPO, total shareholders’ equity jumped to ₹40.34 crore (from ₹24.15 crore), and total assets rose to ₹48.77 crore. Long-term debt is negligible at ₹0.49 crore, giving a debt-to-equity ratio around 0.10 and strong interest coverage.

Trading at roughly 0.63x book, the market currently values the company below its net worth — a point worth noting, though low P/B alone does not establish value.

Against a four-test scorecard, Galaxy Medicare’s FY26 total dividend scores as follows:

Verdict: Moderately Sustainable. Earnings and operating cash cover the payout, and liquidity is ample. The caveat is that free cash flow did not cover FY26’s dividend, and with a capex cycle ahead and only one year of history, the payout’s long-term durability is not yet established.

Galaxy Medicare is a nano-cap SME, so direct like-for-like peers are scarce; larger listed medical-device and dressings players operate at a different scale. The comparison below is directional context, not a strict benchmark.

Peer metrics are generalised; exact sector dividend-yield benchmarks for SME medical-device firms are Not Disclosed by Company and vary by constituent.

With promoters holding 72.43%, the bulk of every dividend rupee flows to the promoter group. Of the FY26 total outflow of about ₹1.06 crore, roughly ₹76.9 lakh accrues to promoters and about ₹29.3 lakh to public shareholders.

This is not inherently negative — promoters and minority holders receive the same ₹0.35 per share — but in a company where promoter cash is also locked in via SME IPO lock-in rules, dividends are one of the few near-term liquidity routes for insiders. Minority investors benefit proportionally; alignment is fair, concentration is simply high.

In India, dividends are taxed in the shareholder’s hands at their applicable income-tax slab rate. Under Section 194, the company deducts TDS at 10% only if total dividend paid to a resident shareholder exceeds ₹10,000 in a financial year (threshold raised in Budget 2025). TDS is 20% if PAN is not furnished.

General information only, not tax advice. Actual tax depends on each investor’s total income and status.

• SME liquidity risk: NSE Emerge shares trade in low volumes (often a few thousand shares a day), making entry and exit difficult and prices volatile.
• Margin compression: EBITDA fell 10.6% in FY26 as costs outpaced 2% revenue growth — profitability momentum has weakened.
• Dividend not FCF-covered: FY26 free cash flow (₹0.44 Cr) did not cover the ₹1.06 Cr payout; sustainability depends on IPO cash and future cash generation.
• Price drawdown: The stock is down ~69% from its ₹54 IPO price, reflecting weak post-listing sentiment.
• Concentration & scale: A nano-cap with 72.43% promoter holding, zero institutional coverage, and a single manufacturing base carries governance and key-person concentration risk.
• Capex competition: The planned new Odisha facility will absorb cash that could otherwise support dividends.

• Operating margin trend: Whether FY27 reverses the EBITDA margin slide back toward the ~12% seen in FY24–25.
• Free cash flow: Whether FCF turns consistently positive enough to self-fund the dividend without drawing on IPO cash.
• Dividend repeat: Whether the ₹0.70 FY26 run-rate is sustained, raised or cut in FY27 — the first real test of a payout policy.
• Capex deployment: Pace and funding of the new Odisha facility, and its impact on returns and cash.
• Working capital: Whether the FY26 working-capital build-up reverses, restoring operating cash flow.
• Promoter lock-in expiry: Post-IPO lock-in timelines and any change in promoter holding.

Galaxy Medicare’s FY26 final dividend of ₹0.35 takes its full-year payout to ₹0.70, a real yield near 4.2% at the current price — attractive on the surface, but partly a product of a share price that has fallen ~69% since its ₹54 IPO. The payout is backed by a clean, near-debt-free balance sheet and is covered by earnings and operating cash, earning a Moderately Sustainable rating.

The offsets are real: free cash flow did not cover the dividend in FY26, EBITDA margins are compressing, the stock is a low-liquidity SME, and the payout history is just one year old. This analysis sets out the positives, negatives, risks and monitoring points so investors can reach their own conclusion; it offers no buy, sell or hold view.