Dividend Alert: Camphor Maker Approves Rs 1 Final Dividend Amid Earnings Pressure

Kanchi Karpooram Ltd held its 33rd Annual General Meeting on September 22, 2026, where shareholders considered the adoption of FY26 financial statements, a final Dividend of Rs 1 per equity share and the reappointment of Managing Director Suresh Veerchandji Shah for five years.

The AGM, conducted through video conferencing and other audio-visual means, began at 11:00 am and concluded at 11:56 am. Dipesh Suresh Jain, Joint Managing Director, was unanimously elected Chairman for the meeting.

The proposed Rs 1 final dividend represents 10 per cent of the company’s Rs 10 face value per share. The dividend proposal comes after a weaker FY26 for the camphor maker, when consolidated profit after Tax fell 60.9 per cent year-on-year to Rs 5.17 crore from Rs 13.22 crore in FY25.

Consolidated revenue from operations declined 1.8 per cent to Rs 148.74 crore in FY26. The sharper fall in earnings reflected increased raw material procurement and Logistics costs, higher finance costs and pressure on working capital liquidity, according to the company’s annual report. Its consolidated PAT margin consequently narrowed to 3.5 per cent from 8.7 per cent a year earlier.

Shareholders also considered the reappointment of Pushpa Jain Suresh, who retires by rotation and is eligible for reappointment. The special business included a resolution for Shah’s reappointment as Managing Director and another special resolution permitting payment of remuneration to him in the event of inadequate or no profits. An ordinary resolution to ratify remuneration paid to the company’s cost auditors was also placed before members.

The remuneration resolution is relevant given the company’s lower earnings in FY26, although the company remained profitable during the year. The resolution provides a governance and compensation framework should profitability fall short during the proposed tenure, subject to shareholder approval and applicable regulations.

Kanchi Karpooram’s core business is manufacturing camphor and allied products at Kanchipuram in Tamil Nadu. Camphor accounted for 76.49 per cent of its FY26 sales, making the company particularly exposed to raw material prices, supply chain conditions and demand patterns linked to religious and traditional consumption.

Management has said it is seeking higher capacity utilisation, a wider customer base and improved margins in FY27. The company is also entering the B2C and retail segment through e-commerce platforms, while looking to expand sales of by-products such as gum rosin and rosin derivatives in domestic and overseas markets. These initiatives come against a competitive backdrop that includes natural camphor imports from China and additional domestic organised capacity, which the company has said has created excess supply in the domestic market.

Remote e-voting for the AGM resolutions opened at 9:00 am on September 18 and closed at 5:00 pm on September 21. Members attending the virtual meeting who had not voted remotely were permitted to vote electronically during the meeting. N. Lovelish Lodha, Practising Company Secretary, was appointed scrutiniser for the voting process.

The company said the resolutions would be deemed passed on September 22, subject to receipt of the requisite majority. Detailed voting results will be disclosed to the stock exchange and uploaded on the company’s website after receipt of the scrutiniser’s report.

As of 3:29 pm on September 22, 2026, Kanchi Karpooram shares were trading at Rs 392.00, up 0.56 per cent from the previous close. The stock was about 10.6 per cent below its 52-week high of Rs 438.70, while its one-year decline of 6.56 per cent was weaker than the BSE 500’s 3.73 per cent fall over the comparable period.

Disclaimer: The article is for informational purposes only and not investment advice.