Company Overview
Timex Group India Limited (Scrip Code: 500414) reported exceptional financial performance for FY 2025-26 alongside significant corporate actions involving preference share restructuring and dividend payments.
Financial Performance
Revenue & Profitability: The company achieved 48% revenue growth to ₹800.63 crore (₹79,859 lakhs) from ₹539.82 crore in FY 2024-25. Net profit surged 140% to ₹75.44 crore (₹7,544 lakhs) from ₹31.42 crore, driven by improved operational efficiency and strong market demand.
Key Financial Ratios: Significant improvements across all metrics: Net Profit Margin increased to 9.4% (from 5.8%), Operating Profit Margin rose to 13.8% (from 9.2%), Return on Net Worth reached 85% (from 37%), and Debt-Equity Ratio improved to 0.27 (from 0.40).
Preference Share Restructuring & Dividend Actions
Capital Reduction: The company redeemed ₹22.90 crore (₹2,290 lakhs) of 13.88% Cumulative Redeemable Non-Convertible Preference Shares on maturity date March 20, 2026, reducing preference share capital to ₹64.82 crore from ₹87.72 crore.
Dividend Payments: Total dividend paid during FY26 amounted to ₹25.33 crore (₹2,533 lakhs) on various preference share classes, clearing accumulated arrears to holding company Timex Group Luxury Watches B.V. The Board recommended additional dividend payments of ₹18.23 crore subject to shareholder approval at the upcoming AGM.
Related Party Transactions: Significant transactions included preference share redemption (₹22.90 crore) and dividend payments (₹25.33 crore) to Timex Group Luxury Watches B.V., royalty payments of ₹26.85 crore to Timex Group USA, Inc., and product purchases from Vertime B.V. (₹37.51 crore) and Timex Nederland B.V. (₹100.68 crore).
Corporate Governance & AGM Details
38th Annual General Meeting: Scheduled for August 20, 2026, to be held virtually via video conferencing. Agenda items include adoption of financial statements, reappointment of director David Thomas Payne, and confirmation of dividend payments totaling ₹25.33 crore on preference shares.
Board Composition: 6 Directors (3 Independent, 2 Non-Executive, 1 Managing Director) with key managerial personnel including Deepak Chhabra (Managing Director), Amit Jain (CFO), and Dhiraj Kumar Maggo (Company Secretary).
Exceptional Items & Contingencies
Labour Code Impact: The company recognized an exceptional item of ₹5.31 crore for estimated financial implications of the newly notified Indian Labour Codes effective November 2025, including ₹3.21 crore for gratuity provisions.
Contingent Liabilities: Total claims not acknowledged as debts amounted to ₹2.80 crore, including sales tax/GST (₹0.72 crore), income tax (₹0.10 crore), customs duty (₹0.60 crore), and other vendor claims (₹1.38 crore).
Capital Structure & Shareholding
Equity Structure: Promoter holding stands at 51.00% held by Timex Group Luxury Watches B.V., with public holding at 49.00%. 97.79% of equity shares are in dematerialized form.
Cash Position: Significant improvement in liquidity with cash and cash equivalents of ₹33.95 crore compared to nil in previous year, reflecting strong operational cash flow generation.