Company Overview

Dynemic Products Limited, engaged in manufacturing dyes & dye intermediates for FMCG, pharma, and cosmetics sectors, reported strong financial performance for FY 2025-26. The company operates in India and 74+ export markets with integrated manufacturing capabilities meeting global quality standards including FSSAI, US FDA, EFSA, and ISO 22000.

Financial Performance

Standalone Financials (₹ in lakhs):

  • Revenue from Operations: ₹37,171
  • Total Income: ₹37,884
  • EBITDA: ₹5,296 (10% increase despite input cost pressures)
  • Profit Before Tax: ₹2,709 (32% increase YoY)
  • Profit After Tax: ₹2,030 (35% increase YoY)
  • EPS: ₹16.33 (increased from ₹12.43 in previous year)

Consolidated Financials (₹ in lakhs):

  • Revenue from Operations: ₹37,864.18
  • Profit After Tax: ₹1,993.03 (from ₹1,510.67 in FY25)
  • Total Equity: ₹24,544.61
  • Total Borrowings: ₹7,274.22
  • Net Gearing Ratio: 29.15% (improved from 41.50%)

Dividend Declaration

The Board recommended a final dividend of ₹1.50 per equity share (15%) for FY 2025-26, amounting to ₹186.43 lakhs, subject to shareholder approval at the AGM.

Corporate Actions & AGM Details

The 36th Annual General Meeting will be held on September 28, 2026, through Video Conference to consider:

  • Adoption of audited financial statements
  • Declaration of dividend
  • Re-appointment of Shri Rameshbhai B. Patel as director
  • Ratification of cost auditor remuneration
  • Approval of related party transactions with Shri Mukesh B. Patel, Manager Export

Subsidiary and Associate Performance

Cerecon Bio Sciences Private Limited (98.09% subsidiary):

  • Net Worth: ₹130.92 lakhs
  • Turnover: ₹225.74 lakhs
  • PAT: ₹12.11 lakhs

Dynemic Holdings Private Limited (49.22% associate):

  • Investment: ₹101.00 lakhs
  • Share of Loss: ₹(0.27) lakhs

Significant Accounting Policies

The financial statements were prepared under Ind AS with detailed policies covering:

  • Property, Plant and Equipment carried at cost less depreciation
  • Investments measured at Fair Value through Other Comprehensive Income
  • Revenue recognition including export incentives and forex gains
  • Financial instruments classification and measurement
  • Employee benefits (Gratuity obligation: ₹344.49 lakhs)
  • Income taxes including deferred tax on temporary differences

Compliance Observations

Secretarial Audit Report noted:

  • Delayed submission of unaudited financial results for September 2025 quarter
  • Delayed submission of Annual Secretarial Compliance Report
  • Newspaper advertisement for results published without QR code
  • Delay in transfer of 13,766 equity shares to IEPF
  • Fines of ₹23,600 each paid to BSE and NSE for delayed submissions

Borrowings and Security

Secured borrowings include term loans and working capital facilities from Citi Bank, HDFC Bank, and Kotak Mahindra Bank, secured by:

  • First and second pari-passu charge on current assets and movable fixed assets
  • Registered mortgage on immovable properties
  • Personal guarantees of directors Shri B.K. Patel, Shri R.B. Patel, and Shri D.B. Patel

Corporate Governance

  • Board met 4 times during the year with all committees functional
  • Whistle Blower Policy and Vigil Mechanism in place
  • No material frauds reported by auditors
  • CSR expenditure of ₹13.20 lakhs against requirement of ₹12.98 lakhs
  • Total permanent employees: 464 with median remuneration of ₹2.83 lakhs