Financial Performance
Cheviot Company Limited reported strong revenue growth of 24.57% to ₹54,740.51 lakhs in FY26, though export sales declined by 21.67% due to raw jute supply challenges and high prices. Operating profit after depreciation improved to ₹6,703.75 lakhs from ₹4,608.43 lakhs, but profit for the year decreased to ₹5,169.15 lakhs (FY25: ₹5,774.19 lakhs) due to lower other income. Key financial ratios showed deterioration with net profit margin declining to 9.44% from 13.14% and return on net worth at 9.34%.
Dividend Declaration and Corporate Actions
The Board recommended a final dividend of ₹25 per ordinary share (250%) totaling ₹14.60 crore, subject to approval at the 125th AGM scheduled for 6th August 2026. Record date is set for 30th July 2026 with payment commencing from 11th August 2026. The company also seeks re-appointment of Utkarsh Kanoria as Wholetime Director and continuation of commission payments to non-executive directors not exceeding 1% of net profits.
Operational Challenges and Investments
The company operated below installed capacity due to raw jute supply crisis, with prices reaching unprecedented levels and Jute Commissioner imposing stock limits. Despite these challenges, government foodgrain purchases under JPMA scheme provided steady demand. The company maintained significant investments totaling ₹35,358.30 lakhs across mutual funds, REITs, and equity instruments, with quoted investments valued at ₹15,709.51 lakhs.
Regulatory Compliance and Governance
Cheviot maintained CRISIL A+/Stable rating for bank facilities and complied with SEBI Listing Regulations. The Board comprises 8 directors with 4 independent members, and the company spent ₹111.19 lakhs on CSR initiatives focused on sports, healthcare, and education. M/s D. Radhakrishnan & Co. was reappointed as cost auditor for FY2027 at remuneration of ₹40,000 plus taxes.
Tax and Shareholder Procedures
Detailed TDS procedures were outlined for dividend payments: 10% TDS for resident shareholders with valid PAN if dividend exceeds ₹10,000, 20% for non-resident shareholders (general rate), with options for lower deduction via tax treaties. All documents must be submitted to registrar M/s Maheshwari Datamatics by record date.
Outlook and Important Dates
Performance remains dependent on raw jute crop availability, with challenging period expected during July-August due to raw jute uncertainty. The 125th AGM will be held virtually on 6th August 2026, with e-voting available from 2nd to 5th August 2026.