Honasa Consumer Board Approves Dividend and Re-appoints Director

Honasa Consumer Limited's Board of Directors has approved a maiden final dividend of ₹3 per equity share and the re-appointment of an independent director. The board also noted a favorable arbitration award of ₹188.84 million against RSM General Trading LLC.

Key Decisions from Board Meeting

The Board of Directors convened on May 21, 2026, to review financial results for the quarter and year ending March 31, 2026. A significant decision was the recommendation of a maiden final dividend of ₹3 per equity share, pending shareholder approval at the upcoming Annual General Meeting (AGM).

In addition to the dividend, the board confirmed the re-appointment of Mr. Subramaniam Somasundaram as an Independent Director for a second five-year term, commencing February 11, 2027. This ensures continuity in the company's governance structure. BDO India Services Private Limited has been appointed as the Internal Auditors for the fiscal year 2026-27.

Three key senior management roles were also filled, with Mr. Vipul Maheshwari designated as EVP – Product and Data, Mr. Nishchay Bahl as SVP – Offline Revenue, and Mr. Nilesh Kotalwar as SVP – Online Revenue.

Financial Recovery and Shareholder Value

The recommendation for a maiden dividend highlights the company's financial strength and commitment to returning value to its shareholders. The re-appointment of an independent director reinforces robust corporate governance. Furthermore, the arbitration award against RSM General Trading LLC represents a successful financial recovery and resolution of a legal dispute.

Legal Victory Details

The arbitration case stemmed from a dispute with RSM General Trading LLC, which an arbitration tribunal found in breach of an agreement. As a result, RSM General Trading LLC is liable to pay AED 7.25 million (approximately ₹188.84 million) to Honasa Consumer Limited. The company has indicated that this award is not expected to have a material financial impact.

Next Steps

Shareholders will have the opportunity to vote on the proposed dividend and director re-appointment during the company's forthcoming AGM. If approved, the dividend is expected to be paid within 30 days following the AGM. Honasa Consumer Limited continues to focus on utilizing proceeds from its recent Initial Public Offering (IPO) for business expansion and strategic acquisitions.