Polychem Limited has declared a final dividend of ₹20 per share for FY26 as the Mumbai-based specialty chemicals company reported a full-year consolidated net profit of ₹2,984.27 lakh (₹29.84 crore) — a 677% year-on-year jump from ₹384.19 lakh in FY25 — driven almost entirely by extraordinary other income of ₹3,334.95 lakh during the year.
The other income that transformed FY26
The standout feature of Polychem’s FY26 result is other income of ₹3,334.95 lakh for the full year against ₹224.88 lakh in FY25 — a near-fifteen-fold increase that towers over operating income and is the sole explanation for the profit surge. The nature of this other income — whether asset sale proceeds, investment gains, or a one-time receipt — will be detailed in the notes to the financial statements, but its scale relative to the core business makes it the defining variable of the year.
The Q3 FY26 other income of ₹2,899.01 lakh in a single quarter against negligible amounts in surrounding quarters confirms this was a concentrated, one-time event rather than a structural improvement in non-operating income.
Q4 FY26: The underlying business
Stripping out the extraordinary other income and looking at Q4 in isolation provides a cleaner view of the core chemicals business. Revenue from operations for Q4 FY26 was ₹1,194.17 lakh — net sales of ₹1,157.99 lakh plus other operating income of ₹36.18 lakh — against ₹1,058.43 lakh in Q4 FY25, a 12.8% year-on-year improvement. Total expenses were ₹1,120.75 lakh against ₹1,000.15 lakh.
Q4 profit before tax was ₹126.78 lakh — modestly ahead of Q4 FY25’s ₹121.46 lakh. However the Q4 tax line produced a net expense of ₹265.92 lakh — including current tax of ₹197.73 lakh and deferred tax of ₹71.46 lakh — resulting in a net loss for Q4 of ₹139.14 lakh. The tax charge exceeding pre-tax profit is attributable to timing differences in deferred tax recognition.
Full year FY26 operational numbers
Full-year revenue from operations was ₹4,396.71 lakh against ₹4,165.42 lakh in FY25 — a 5.5% year-on-year improvement reflecting modest volume and pricing growth in the specialty chemicals segment. Full-year total expenses were ₹4,053.94 lakh against ₹3,911.08 lakh. Profit before tax including other income was ₹3,677.72 lakh against ₹479.22 lakh — with the ₹3,334.95 lakh other income accounting for virtually the entire improvement. Total tax expense for FY26 was ₹693.45 lakh, producing the ₹2,984.27 lakh net profit.
The ₹20 dividend
The board’s declaration of a ₹20 per share final dividend for FY26 reflects the significantly improved profit position — enabled by the one-time other income — and signals confidence in the company’s cash position. For a specialty chemicals company of Polychem’s scale, a ₹20 dividend is a meaningful payout.
This article is for informational purposes only and does not constitute investment advice. Please consult a qualified financial advisor before making any investment decisions.