Himatsingka Seide profit drops 18.5% as finance costs weigh
Revenue fell 9.5% to ₹2,515 crore in FY26. The board proposed a dividend of 25 paise per share amid persistent working capital pressure.
— 2 earlier stories on Himatsingka Seide Ltd. →What's new
- Consolidated revenue slipped 9.5% to ₹2,515 crore for the year ended March 2026.
- Net profit fell 18.5% to ₹62 crore due to weak demand and high finance costs.
- A ₹20.6 crore depreciation charge hit the books after reclassifying assets held for sale.
Why this matters
The reclassification of assets back to property, plant and equipment suggests a shift in divestment plans, adding a non-cash depreciation burden to an already strained bottom line. With finance costs and working capital pressures mounting, the modest dividend payout offers little relief for shareholders.
What we're watching
- Whether the company can reduce its finance costs in the coming quarters.
- Updates on the status of assets previously marked for sale.
- Signs of demand recovery in core markets.
The full read
Himatsingka Seide closed FY26 with a 9.5% decline in revenue to ₹2,515 crore and an 18.5% drop in net profit to ₹62 crore. The results reflect a difficult operating environment defined by soft demand and heavy finance costs. Beyond the core numbers, the company took a ₹20.6 crore depreciation hit after reclassifying assets previously held for sale back into its property, plant and equipment ledger. This move suggests that planned divestments have stalled, leaving the company to absorb additional depreciation expenses. The board has proposed a final dividend of 25 paise per share. With working capital pressures persisting, the company faces a clear challenge in stabilizing its margins. The market likely anticipated this weakness, but the underlying financial health remains under pressure.
Questions answered
- What drove the decline in Himatsingka Seide's FY26 profit?
- Profit fell 18.5% to ₹62 crore, driven by a combination of weaker demand and elevated finance costs.
- Why did the company record an additional ₹20.6 crore depreciation charge?
- The charge resulted from reclassifying certain assets that were previously held for sale back into the property, plant and equipment category.
- What is the proposed dividend for shareholders?
- The board has recommended a final dividend of 25 paise per share, which remains subject to shareholder approval.
- How did revenue perform compared to the prior year?
- Revenue declined by 9.5% to reach ₹2,515 crore for the year ended March 2026.
Story so far
All notes on HIMATSEIDE →- 27 May 2026 · 6:38 PM IST Himatsingka Seide profit drops 18.5% as finance costs weigh
- today Himatsingka Seide plans ₹850 crore debt raise
- today Himatsingka Seide reports a decline in FY26 revenue and profit