Company Overview

Sree Rayalaseema Hi-Strength Hypo Limited reported standalone revenue of ₹666.96 crore for FY26, up from ₹637.82 crore in FY25, with net profit remaining stable at ₹92.70 crore. The company declared a final dividend of ₹3 per share, subject to shareholder approval at the AGM scheduled for September 26, 2026.

Financial Performance

Revenue & Profitability:

  • Standalone revenue from operations: ₹666.96 crore (4.6% growth YoY)
  • Other income: ₹54.86 crore vs ₹39.47 crore in FY25
  • Profit before exceptional items and tax: ₹134.35 crore vs ₹122.22 crore
  • Exceptional items: ₹13.50 crore (loss on gold futures and debenture investments)
  • Net profit after tax: ₹92.70 crore vs ₹92.68 crore
  • Basic EPS: ₹54.00

Financial Position:

  • Strong liquidity with cash and cash equivalents: ₹434.16 crore
  • Total investments: ₹306.81 crore (equity instruments, venture capital funds, mutual funds)
  • Zero debt and robust capital structure with debt-equity ratio of 0.00
  • Current ratio improved to 10.47 from 8.94

Corporate Actions & Governance

Dividend Declaration:

  • Final dividend of ₹3 per equity share (30%)
  • Total dividend amount: ₹5.15 crore
  • Record date: September 18, 2026
  • Payment date: On or before October 23, 2026

Board Appointments:

  • Proposal to appoint Kasturi Phaneendra Rao as Independent Director for 5-year term
  • Re-appointment of H Gurunath Reddy who retires by rotation

Related Party Transactions:

  • Seeking approval for material transactions worth ₹425 crores with promoter entity TGV SRAAC Limited for FY27
  • FY26 actual transactions with related parties: ₹171.80 crore
  • Major transactions include purchases from TGV SRAAC Ltd (₹74.08 crore) and sales to same entity (₹21.78 crore)

Operational Highlights

Segment Performance:

  • Calcium Hypo Chloride: ₹288.45 crore (decrease of 10.03%)
  • Stable Bleaching Powder: ₹73.75 crore (increase of 3.52%)
  • Sulphuric Acid: ₹253.36 crore
  • Export revenue: ₹255.43 crore (38.3% of total)

Risk Management:

  • Foreign currency exposure primarily to USD fluctuations
  • Sensitivity: 5% change in USD rate impacts profit by ₹113.84 lakh
  • Trade receivables: ₹840.42 lakh with 60-day average credit period

Regulatory & Compliance Matters

AGM Details:

  • Date: September 26, 2026 at 4:00 PM via video conference
  • Remote e-voting period: September 23-25, 2026
  • Key agenda items include financial statement adoption, dividend declaration, and director appointments

Contingent Liabilities:

  • GST dues under dispute: ₹1.33 crore
  • Case pending against land vendors: ₹55.12 crore
  • Matter pending before UK Court for damages: ₹1,251.94 crore

Corporate Governance:

  • Board composition: 8 directors (5 non-executive, 3 independent)
  • 4 board meetings held during FY26
  • Clean audit opinion from S.T. Mohite & Co.

Shareholding & Capital Structure

  • Paid-up equity share capital: ₹17.16 crore (17,164,821 shares of ₹10 each)
  • Promoter holding: 61.84%
  • Dematerialized shares: 93.02%
  • Shares in suspense escrow demat account: 1,841 shares

Subsequent Events & Commitments

  • 79,075 shares transferred to Investor Education and Protection Fund
  • No significant capital commitments or uncalled liabilities
  • CSR expenditure of ₹3.79 crore against obligation of ₹2.63 crore