Prima Plastics has recommended a final dividend of ₹2 per share for FY 2025-26. The company also provided a corporate guarantee of ₹28.86 crore for its demerged entity, Prima Innovation Limited.
Prima Plastics Ltd. Board Approves ₹2 Dividend, Corporate Guarantee Post Demerger
Prima Plastics Ltd. announced its financial results and key corporate actions. The Board recommended a final dividend of ₹2 per share for the fiscal year 2025-26. This proposal awaits shareholder approval at the 32nd Annual General Meeting (AGM) scheduled for August 10, 2026. ## What just happened The company has completed the demerger of its Rotational Moulding business into a new entity, Prima Innovation Limited, effective March 31, 2026. Prima Plastics will provide a corporate guarantee of up to ₹28.86 crore to Kotak Mahindra Bank Limited to support Prima Innovation Limited's funding requirements. This guarantee will be treated as a contingent liability. ## Why this matters This demerger marks a significant restructuring for Prima Plastics. The dividend payout signals a return of value to shareholders. However, the corporate guarantee introduces a contingent liability, requiring careful monitoring of the demerged entity's financial health. ## The backstory Prima Plastics has undergone a major transformation with the separation of its Rotational Moulding business. The financial figures for FY 2025 and FY 2026 for continuing operations are not directly comparable due to this structural change. ## What changes now Prima Plastics will now focus on its remaining core business, while Prima Innovation Limited operates as a separate entity with financial backing from the parent. Ms. Nehal Goyal has been appointed as Company Secretary and Compliance Officer, effective February 11, 2026. ## Risks to watch The company faces risks from petrochemical feedstock price volatility, a key factor affecting operating margins. The corporate guarantee for the demerged entity adds a layer of financial commitment. ## Peer comparison Information on peer comparison is not available in the provided filing. ## Context metrics (time-bound) Consolidated Revenue stood at ₹159.81 crore. Consolidated EBITDA was ₹37.31 crore. Standalone Revenue (Continuing) was ₹86.65 crore, with Standalone EBITDA at ₹15.29 crore. The corporate guarantee is for ₹28.86 crore. The recommended dividend is ₹2 per share for FY 2025-26. Remuneration increase for Mrs. Shriya V. Chaudhary is ₹39 lakh for FY 2025-26. ## What to track next Investors should monitor the performance of Prima Plastics' core business post-demerger and the financial health of Prima Innovation Limited. Shareholder approval at the upcoming AGM for the dividend is a key event to watch.
