SPIC Announces ₹2 Dividend and ₹211 Cr Annual Profit

Southern Petrochemical Industries Corporation Ltd. reported an annual consolidated net profit of ₹211.48 crore for the year ended March 31, 2026, on revenues of ₹2,955.97 crore.

Key Financials and Dividend

Southern Petrochemical Industries Corporation Limited (SPIC) announced its financial results for the fiscal year ending March 31, 2026. The company posted a consolidated annual net profit of ₹211.48 crore and a fourth-quarter net profit of ₹29.49 crore. SPIC recommended a dividend of ₹2 per equity share for the fiscal year 2025-26.

The company also reported receiving ₹6.98 crore in insurance claims for machinery spare replacements.

Financial Performance and Risks

Shareholders will receive a return through the proposed dividend. However, the company's financial performance is partly reliant on the finalization of government subsidies by the Department of Fertilizers. SPIC also faces operational challenges from recent maintenance and past flood damages.

For the current fiscal year, SPIC's financials include provisional subsidies totaling ₹2,426.91 crore based on retention prices. The company experienced fewer operating days for its urea plant in Q4, with 73 days compared to 90 days in the same period last year.

Past flood damages in December 2023 led to the need for machinery spare replacements, for which insurance claims have been filed.

Management and Shareholder Vote

A new Chief Financial Officer, Mr. Narasimhan Raghunathan, has been appointed, effective May 23, 2026. Shareholders are set to vote on the recommended dividend of 20% (₹2 per share) for FY 2025-26.

Areas of Concern

Key risks for SPIC include:

• Subsidy uncertainty due to pending final retention prices from the Department of Fertilizers.
• Potential operational impact from a recent shutdown for repairs at the Tuticorin plant between March 3-19, 2026.
• The renewal of a land lease for a manufacturing unit, which expired on June 12, 2020.

Financial Metrics

• Consolidated Annual Revenue: ₹2,955.97 Crores
• Consolidated Annual Net Profit: ₹211.48 Crores
• Consolidated Annual EPS: ₹10.39
• Consolidated Q4 Revenue: ₹584.15 Crores
• Consolidated Q4 Net Profit: ₹29.49 Crores
• Consolidated Q4 EPS: ₹1.45
• Insurance claims received for flood damage repairs: ₹6.98 Crores
• Insurance claims lodged for Tuticorin plant repairs: ₹4.25 Crores
• Insurance claims lodged for Tuticorin plant shutdown/start-up: ₹21.95 Crores

Next Steps

Investors will be watching for:

• The Department of Fertilizers to finalize fertilizer retention prices and subsidies.
• Progress on the land lease renewal application with the Tamil Nadu government.
• The resolution of insurance claims related to plant repair and shutdown costs.