Shri Jagdamba Polymers Final Dividend FY26 — ₹1/Share, 0.16% Yield, Record Date 17 Sep

Shri Jagdamba Polymers Limited has declared a Final Dividend of ₹1.00 per share for the financial year 2025–26. On a face value of just ₹1, that headline reads as a 100% dividend — but the real cash yield on the market price is only about 0.16%. The Shri Jagdamba Polymers dividend is a token, highly-covered payout from a technical-textiles manufacturer, not an income play. This analysis separates the eye-catching percentage from what actually lands in a shareholder’s bank account.

Incorporated in 1985 and headquartered in Ahmedabad, Shri Jagdamba Polymers is a manufacturer and exporter of technical textiles — woven and non-woven polypropylene (PP) and HDPE fabrics, geo-textiles, and FIBC (bulk) bags used across packaging, infrastructure and industrial end-markets. The stock trades on the BSE under code 512453 and on the NSE under the symbol SHRJAGP, with trading on the NSE permitted from 17 August 2026. Its ISIN is INE564J01026 and the face value is ₹1 following a 10:1 stock split in November 2017. Classified as a micro-cap with a market capitalisation of roughly ₹530–600 Cr, the company remains promoter-led, with promoters holding 72.94%.

FY2025–26 was a softer year for Shri Jagdamba Polymers. On a consolidated basis, revenue fell to ₹431 Cr from ₹481 Cr (down ~10.4%), while net profit declined to ₹36.24 Cr from ₹48.09 Cr (down ~24.6%). Operating margin compressed from 14.3% to 10.2%. Importantly, consolidated earnings included around ₹20.1 Cr of other income — roughly 55% of reported PAT — alongside a ₹2.86 Cr exceptional insurance settlement. Standalone net profit was higher at ₹41.39 Cr, meaning the consolidated entity was dragged lower by subsidiary-level losses. Earnings quality, not the dividend itself, is the real talking point this year.

The “100%” label on the Shri Jagdamba Polymers dividend is a classic face-value illusion. Because the face value is only ₹1, a 100% dividend is just ₹1 per share — a real yield near 0.16% against a market price around ₹607. The more useful signal is the trend: the company has raised its dividend from ₹0.10 (FY14) to ₹1.00 (FY26), a roughly 10x rise over twelve years. The second signal is earnings quality — with other income at ~55% of PAT and operating profit down ~36%, the dividend hike arrived in a year when the core business weakened, not strengthened. Generous in percentage terms; immaterial in rupee terms.

The company has disclosed no dividend-distribution policy target or forward guidance, so any outlook must stay rooted in the visible pattern. Historically, Shri Jagdamba Polymers pays a single annual final dividend, declared around August–September and approved at the AGM. The payout ratio has stayed low (~2–3% of profit), leaving the vast majority of earnings for reinvestment into capacity. With a fresh capex cycle lifting fixed assets sharply and a strong Q1 FY27 rebound (consolidated PAT of ₹20.0 Cr in the June 2026 quarter), the capacity for continued token dividends appears intact. What is Not Disclosed by Company is any commitment to raise the payout ratio or shift toward an income-oriented distribution.

The Board of Shri Jagdamba Polymers met on 31 August 2026 to consider and recommend a Final Dividend of ₹1.00 per equity share (100% of the ₹1 face value) for the year ended 31 March 2026, subject to shareholder approval. The dividend was approved by members at the company’s 42nd Annual General Meeting, held on 24 September 2026. The record date for determining eligible shareholders was fixed at 17 September 2026, with a book-closure window of 18–24 September 2026 for the AGM. This is a final dividend only; no interim or special dividend was declared for the year.

A dividend yield is simply the annual dividend divided by the share price. For Shri Jagdamba Polymers, a ₹1.00 dividend against a market price of about ₹607 gives a real yield of roughly 0.16%; measured on the announcement-date price of about ₹632, it is ~0.158%. The “100%” figure quoted on dividend screens is calculated on the ₹1 face value, not the market price — which is why the two numbers look so far apart. Here, the low yield is not caused by a falling share price or a weak special payout; it reflects a deliberately conservative payout policy. The Shri Jagdamba Polymers dividend yield sits far below a bank fixed deposit and should not drive an income decision.

On the record available, Shri Jagdamba Polymers qualifies as a consistent, growing dividend payer — even if the absolute amounts are small. The restated dividend per share has climbed steadily: ₹0.10 through FY14–FY18, then ₹0.20, ₹0.25, ₹0.40, ₹0.50, ₹0.75 and now ₹1.00 for FY26. That is a compound growth of about 21% a year over twelve years, with no cuts, no suspensions, and no reliance on one-off special dividends. The caveat: the growth is off a very low base, so even a decade of raises leaves the rupee payout modest. Consistency is a genuine positive for governance signalling; it is not, by itself, an income thesis.

FY26 shows negative operating leverage: revenue fell ~10.4%, but operating profit fell much harder, by ~36% (from ₹69 Cr to ₹44 Cr), and consolidated PAT dropped ~24.6%. The gap between the revenue decline and the sharper profit decline points to margin compression — a mix of weaker realisations and relatively fixed costs across a capacity-heavy base. Reported PAT was cushioned by ~₹20.1 Cr of other income, so core operating profitability is weaker than the headline bottom line suggests. Encouragingly, the June 2026 quarter rebounded to a consolidated PAT of ₹20.0 Cr, hinting at a cyclical recovery. Over five years, Screener pegs sales growth at a modest ~12%, confirming this is a steady, not fast-growing, manufacturer.

Cash tells a sharper story than profit. Operating cash flow was negative in both FY24 (-₹11.7 Cr) and FY25 (-₹34.5 Cr) as receivables ballooned — trade receivables swelled to around ₹120–135 Cr, and the cash-conversion cycle ran long. In FY26 it recovered strongly to +₹51.2 Cr, a genuine positive. However, free cash flow stayed negative (about -₹5 Cr in FY26) because of heavy capacity capex that pushed fixed assets up sharply. The practical takeaway: the tiny ₹0.88 Cr dividend is comfortably funded by current earnings and reserves, not by free cash flow, and certainly not by asset sales. The dividend is affordable; the free-cash-flow drain is a capex choice, not a distress signal.

The balance sheet is adequately capitalised but has levered up to fund growth. Reserves stand at about ₹328 Cr and book value is around ₹376 per share, against total equity near ₹329 Cr. Cash and investments total roughly ₹98.6 Cr (about ₹31.6 Cr liquid plus ₹67 Cr in longer-term investments). The notable shift: the company moved from a net-cash position in FY24 to net debt of about ₹61 Cr in FY26, as borrowings funded the capex and working-capital build. ROE has eased to around 11–12% and ROCE to roughly 13%, well below the 30%-plus returns of earlier years. For the dividend, the balance sheet is more than sufficient; for growth, leverage is now a variable to watch.

On three of four tests the Shri Jagdamba Polymers dividend is very comfortably covered; it fails the free-cash-flow test only because of heavy capex, not weak operations. Verdict: Sustainable. The outflow is so small (₹0.88 Cr against ₹36 Cr of profit) that affordability is never in question.

Against listed plastics and technical-textiles peers, Shri Jagdamba Polymers is a clear outlier on the low side for both yield and payout. Time Technoplast and Garware Technical Fibres pay out 14–20% of profit and yield near 1.2%; Shri Jagdamba retains almost everything to fund capacity. That is neither good nor bad in itself — it simply confirms the stock is positioned as a reinvestment/growth story, not a dividend-income one.

With promoters holding 72.94%, the lion’s share of the dividend flows back to the promoter group. Of the total outflow of about ₹0.88 Cr, roughly ₹0.64 Cr accrues to promoters and only about ₹0.24 Cr to all public and institutional shareholders combined. Because the absolute pool is tiny, the distribution is not a meaningful wealth-transfer mechanism for anyone — promoter or minority. Institutional ownership is thin (FII 0.02%, DII ~5.1%), so the free float is dominated by retail. The practical read: this dividend is a signalling gesture of financial health and continuity, not a route by which the company returns surplus capital to minority investors.

Since FY2020–21, dividends are taxed in the hands of the shareholder at their applicable income-tax slab rate; there is no separate Dividend Distribution Tax. Under Section 194, the company deducts TDS at 10% if the total dividend paid to a resident shareholder exceeds ₹10,000 in a financial year (the threshold was raised from ₹5,000 in Budget 2025); TDS is 20% if PAN is not furnished. Shareholders can claim credit for TDS while filing returns.

Worked example (generic illustration)

An investor holding 1,000 shares receiving a dividend of ₹10 per share earns a gross dividend of ₹10,000. In the 30% slab, tax is ₹3,000, leaving a net of ₹7,000. Applied to Shri Jagdamba Polymers’ actual ₹1 dividend, 1,000 shares yield only ₹1,000 gross — below the ₹10,000 TDS threshold, so no TDS applies, and the slab tax of ₹300 leaves ₹700 net. The effective post-tax yield is a fraction of a percent.

• Earnings-quality risk: roughly 55% of FY26 consolidated PAT came from other income; a drop in non-operating income would expose weaker core profitability.
• Margin and demand cyclicality: operating margin fell from 14.3% to 10.2% and revenue declined ~10% in FY26, reflecting sensitivity to polymer prices and end-market demand.
• Working-capital intensity: high receivables drove two consecutive years of negative operating cash flow (FY24 and FY25), a recurring stress point.
• Rising leverage: the company moved from net cash to net debt of ~₹61 Cr while funding heavy capex; interest costs and execution become more important.
• Micro-cap liquidity and concentration: promoters own 72.94%, free float and trading volumes are thin, and the price can be volatile.
• Negligible dividend income: at a ~0.16% yield, the dividend offers virtually no income cushion.

• Core margin recovery: whether operating margin rebuilds toward the 14%+ seen in FY25 as the Q1 FY27 momentum continues.
• Operating cash flow conversion: whether FY26’s positive ₹51 Cr OCF holds, and whether receivables stay controlled.
• Capex payoff and free cash flow: whether the expanded capacity turns FCF positive and lifts asset turns.
• Debt trajectory: whether net debt (~₹61 Cr) is reduced as the capex cycle matures.
• Payout policy: any move to raise the payout ratio above the current ~2–3%, which would change the dividend thesis.
• Quality of earnings: the share of other income in reported profit in coming quarters.

The Shri Jagdamba Polymers dividend of ₹1.00 per share is best understood as a consistency signal, not an income source. The positives are real: an unbroken, rising dividend over twelve years, an outflow covered 40x by earnings and 113x by cash and investments, and a recovering operating cash flow. The negatives are equally clear: a real yield of only ~0.16%, a payout far below peers, FY26 earnings leaning heavily on other income, negative free cash flow, and rising debt from an aggressive capex cycle. For an income seeker, the yield is immaterial; for a growth-oriented investor, the dividend is a minor footnote to a technical-textiles capacity story. Readers should weigh these facts against their own goals and consult a SEBI-registered adviser.

This article is for informational and educational purposes only and does not constitute investment, legal or tax advice, nor a recommendation to buy, sell or hold any security. ShareBazaar Online is not a SEBI-registered investment adviser. All figures are drawn from publicly available disclosures, exchange filings and third-party financial data sources and may contain errors or become outdated; dividend amounts, dates and financial figures should be independently verified against official BSE/NSE filings and the company’s annual report before any decision. Market price, yield and ratio figures are indicative and change with the share price. Investments in equities, especially micro-cap stocks, carry risk including loss of capital. Readers should conduct their own research and consult a qualified, SEBI-registered financial adviser and tax professional before investing. Past dividend history is not indicative of future distributions.