Hindustan Composites Limited (HINDCOMPOS)
₹443.25 -7.31% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Hindustan Composites' revenue was ₹20.1 Cr (-77.0% year on year, -80.9% on the previous quarter), and net profit ₹8.7 Cr (+16.4% year on year); the operating margin was 12.7%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹20.1 | -77.0% | -80.9% |
| Operating profit | ₹2.5 | -81.5% | -84.1% |
| Net profit | ₹8.7 | +16.4% | -27.7% |
| EPS (₹) | 5.88 | +16.4% | -25.8% |
| Operating margin | 12.7% | — | — |
HINDCOMPOS delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 23.48% of the HINDCOMPOS shares traded on NSE were taken to delivery, against the stock's own 20-session average of 67.54%. The price fell 7.31% on unusually low delivery. It traded 5.6 times its average daily volume.
Delivery in the last 5 sessions: 70.0% · 65.7% · 57.5% · 54.5% · 23.5%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Hindustan Composites Limited has declared a Special Interim Dividend of ₹21 per equity share (420% on a face value of ₹5) for FY 2026-27. Relative to the current share price of ₹431, this represents a significant one-time dividend yield of ~4.9%. The record date to determine eligible shareholders has been set as Friday, October 16, 2026, with payouts scheduled within 30 days. The dividend payout is well-backed by the company's strong balance sheet, which holds ₹1,147 crore in net worth and negligible debt.
- Special interim dividend declared at ₹21 per equity share (420% on ₹5 face value)
- Represents ~4.9% dividend yield based on current share price of ₹431
- Record date set for Friday, October 16, 2026
- Disbursement to eligible shareholders within 30 days of declaration
Hindustan Composites Limited has declared a Special Interim Dividend of ₹21 per equity share (420% on a face value of ₹5) for FY 2026-27. Relative to the current share price of ₹431, this represents a significant one-time dividend yield of ~4.9%. The record date to determine eligible shareholders has been set as Friday, October 16, 2026, with payouts scheduled within 30 days. The dividend payout is well-backed by the company's strong balance sheet, which holds ₹1,147 crore in net worth and negligible debt.
- Special interim dividend declared at ₹21 per equity share (420% on ₹5 face value)
- Represents ~4.9% dividend yield based on current share price of ₹431
- Record date set for Friday, October 16, 2026
- Disbursement to eligible shareholders within 30 days of declaration
Hindustan Composites Limited has declared a Special Interim Dividend of ₹21 per equity share (420% on a face value of ₹5) for FY 2026-27. Relative to the current share price of ₹431, this represents a significant one-time dividend yield of ~4.9%. The record date to determine eligible shareholders has been set as Friday, October 16, 2026, with payouts scheduled within 30 days. The dividend payout is well-backed by the company's strong balance sheet, which holds ₹1,147 crore in net worth and negligible debt.
- Special interim dividend declared at ₹21 per equity share (420% on ₹5 face value)
- Represents ~4.9% dividend yield based on current share price of ₹431
- Record date set for Friday, October 16, 2026
- Disbursement to eligible shareholders within 30 days of declaration
Hindustan Composites Limited has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended September 30, 2026. The certificate issued by Registrar and Share Transfer Agent MUFG Intime India Private Limited confirms the processing, verification, and cancellation of physical share certificates received for dematerialization. All eligible shares have been listed on the stock exchanges within prescribed timelines. This is a mandatory and purely procedural administrative disclosure.
- Compliance certificate submitted under Regulation 74(5) of SEBI Regulations, 2018
- Pertains to the quarter ended September 30, 2026
- Issued by Registrar and Share Transfer Agent MUFG Intime India Private Limited on October 3, 2026
- Filing submitted to BSE and NSE on October 10, 2026
Hindustan Composites Limited announced that shareholders approved the appointment of M/s. R M Mimani & Associates LLP as Secretarial Auditors at its 62nd AGM held on September 29, 2026. The appointment spans a 5-consecutive-year term from FY 2026-27 through FY 2030-31, in compliance with Regulation 24(A) of SEBI LODR Regulations. The firm brings 25 years of practice experience in compliance and corporate advisory. This is a routine statutory governance update with zero financial or operational impact.
- Appointment of M/s. R M Mimani & Associates LLP as Secretarial Auditors approved at the 62nd AGM
- Term set for 5 consecutive years covering FY 2026-27 to FY 2030-31
- Auditor is a peer-reviewed firm with 25 years of professional experience
- AGM concluded at 12.24 p.m. on September 29, 2026, with voting results declared on September 30, 2026
Hindustan Composites Limited announced the voting results and scrutinizer's report for its 62nd Annual General Meeting held on September 29, 2026. Shareholders approved all agenda items, including the adoption of FY26 financial statements and a dividend declaration of Rs. 2 per share (40% on face value of Rs. 5). Additionally, the reappointment and remuneration revision of Managing Director Mr. P.K. Choudhary and the appointment of Secretarial Auditors for a 5-year tenure were approved.
- Dividend of Rs. 2 per equity share (40% of face value of Rs. 5) approved for FY26
- Overall shareholder turnout stood at 75.0119% of outstanding shares (1,10,78,511 valid votes polled)
- Revision in remuneration for Managing Director Mr. P. K. Choudhary approved effective April 1, 2026
- Appointment of M/s. R M Mimani & Associates LLP as Secretarial Auditors confirmed for 5 years (FY27 to FY31)
Hindustan Composites has dispatched web-link notices for its 62nd Annual General Meeting (AGM) and Annual Report for FY25-26 under SEBI Listing Regulations. The AGM is scheduled for September 29, 2026, via video conferencing. The company fixed September 22, 2026, as the cut-off / record date to determine shareholder eligibility for e-voting and the proposed dividend of ₹2 per equity share (40%). Remote e-voting will be open from September 26 to September 28, 2026.
- 62nd Annual General Meeting scheduled for Tuesday, September 29, 2026, at 11:45 a.m. IST via VC/OAVM.
- Cut-off/Record date fixed on Tuesday, September 22, 2026, for e-voting eligibility and dividend entitlement.
- Dividend declared at 40%, amounting to ₹2 per equity share.
- Remote e-voting window opens September 26, 2026 (09:00 IST) and closes September 28, 2026 (17:00 IST).
Hindustan Composites Limited has fixed Tuesday, September 22, 2026, as the record date to determine shareholder eligibility for the final dividend for the financial year ended March 31, 2026. The dividend payout is subject to shareholder approval at the upcoming 62nd Annual General Meeting (AGM). The same date will also serve as the cut-off date for determining voting eligibility at the AGM.
- Record date for FY26 dividend eligibility set as September 22, 2026
- Cut-off date for voting rights at the 62nd AGM is also September 22, 2026
- Filing made in compliance with Regulation 42 of SEBI LODR Regulations
Hindustan Composites has issued the Notice of its 62nd Annual General Meeting scheduled for September 29, 2026, alongside its FY25-26 Annual Report. The Board has recommended a final dividend of Rs 2.00 per share (40% of face value Rs 5), subject to shareholder approval, with an entitlement date of September 22, 2026. Key agenda items include adoption of FY26 financial statements, payment of Rs 5,00,000 commission to each of four Independent Directors, and revision in Managing Director remuneration. The annual report also notes an exceptional item of Rs 291.31 lakhs for employee benefit provisions under the New Labour Codes.
- 62nd Annual General Meeting scheduled for September 29, 2026 via Video Conferencing.
- Proposed final dividend of Rs 2.00 per equity share (40% of Rs 5 face value), with eligibility date on September 22, 2026.
- Proposed commission payment of Rs 5,00,000 each to four Independent Directors for FY26.
- Exceptional item of Rs 291.31 lakhs recognized in FY26 financial statements for new labour code employee provisions.
Hindustan Composites Limited has completed the slump sale of its Friction Business Undertaking to Rane (Madras) Limited (RML) effective August 20, 2026, pursuant to the Business Transfer Agreement dated June 30, 2026. As part of the transfer, Managing Director Mr. Pawan Kumar Choudhary has stepped down to become a Non-Executive Director to facilitate his move to RML. Additionally, four Senior Management Personnel across Sales, Purchase, Works, and R&D have been transferred to RML. Investors should note this represents a major structural shift in the company's operating profile.
- Completed slump sale of Friction Business Undertaking to Rane (Madras) Limited on 20th August, 2026
- Managing Director Pawan Kumar Choudhary resigned as MD/KMP effective 20th August, 2026, transitioning to Non-Executive Director
- 4 Senior Management Personnel (Sr. VP Sales, GM Purchase, Sr. VP Works, VP R&D) transferred to RML
- Follows shareholder approval via Postal Ballot intimated on 11th August, 2026 under the BTA dated 30th June, 2026
Hindustan Composites Limited has completed the slump sale of its Friction Business Undertaking to Rane (Madras) Limited (RML) effective 20th August, 2026, pursuant to the Business Transfer Agreement signed on 30th June, 2026. As part of the transaction, Managing Director Pawan Kumar Choudhary has resigned from his executive role and transferred to RML, transitioning to a Non-Executive Director role on the company's board. Additionally, four Senior Management Personnel across Sales, Purchase, Works, and R&D have been transferred to RML.
- Completed slump sale of Friction Business Undertaking to Rane (Madras) Limited effective 20th August, 2026
- Managing Director Pawan Kumar Choudhary stepped down from executive/KMP post on 20th August, 2026; continues as Non-Executive Director
- 4 Senior Management Personnel (VPs and GMs of Sales, Works, R&D, Purchase) transferred to RML
- Transaction executes the Business Transfer Agreement executed on 30th June, 2026 following postal ballot approval
Hindustan Composites has completed the slump sale of its Friction Business Undertaking to Rane (Madras) Limited (RML) with effect from 20th August, 2026, pursuant to the Business Transfer Agreement dated 30th June, 2026. Along with the business undertaking, four Senior Management Personnel across Sales, Works, Purchase, and R&D have been transferred to RML. Managing Director Pawan Kumar Choudhary has stepped down from his executive role to join RML, while retaining a seat on the board as a Non-Executive Director.
- Completed the slump sale of Friction Business Undertaking to Rane (Madras) Limited effective 20th August, 2026.
- MD & KMP Pawan Kumar Choudhary resigned effective close of business 20th August, 2026 to transfer to RML; remains Non-Executive Director.
- Four key Senior Management Personnel (Heads of Sales, Purchase, Works, and R&D) transferred to RML.
- Transaction concluded following shareholder approval via postal ballot dated 11th August, 2026.
Hindustan Composites (HCL) shareholders have approved the slump sale of its Friction Business Undertaking to Rane (Madras) Limited for a cash consideration of ₹370 crore. The divested business is highly significant, contributing ₹315.04 crore or 84% of the company's FY26 turnover, though it represents only 7.5% of its net worth. The deal value of ₹370 crore is substantial, equivalent to approximately 60% of HCL's current market capitalization of ₹619 crore. Management intends to use the proceeds for strategic investments and a potential special dividend for shareholders.
- Sale of Friction Business for ₹370 crore in cash to Rane (Madras) Limited.
- Divested unit contributed 84% of total FY26 turnover (₹315.04 crore).
- Transaction expected to be completed on or before September 30, 2026.
- Net worth of the divested unit is ₹69.52 crore, just 7.5% of the company's total net worth.
- Management indicates a portion of proceeds will likely be returned via a special dividend.
Hindustan Composites (HINDCOMPOS) shareholders have approved a special resolution to sell the company's core Friction Business Undertaking on a slump sale basis. The resolution was passed with 98.96% of the votes cast in favor, as per the Scrutinizer's report dated August 10, 2026. This move is highly significant as the friction business is the company's primary operational segment, contributing to its Rs 375 Cr TTM revenue. Investors should note that the company also maintains a substantial investment portfolio valued at approximately Rs 962.19 Cr.
- 98.9573% of the valid votes polled were in favor of the slump sale resolution.
- Total valid votes polled amounted to 623,686 shares, representing approximately 4.22% of the total equity capital.
- The resolution is deemed to have been passed on August 8, 2026, the final date of the postal ballot period.
- The sale is being executed under Section 180(1)(a) of the Companies Act and SEBI Regulation 37A.
- Promoter group, holding 74.98% of the company, recorded zero votes in the provided voting results table.
Hindustan Composites Limited (HCL) responded to an NSE query regarding why its standalone and consolidated P&L figures for the quarter ended June 30, 2026, were identical. The company clarified that its share of losses in its Joint Venture, Compo Advics (India) Private Limited, has exceeded its investment value. Under Ind AS 28, the company stopped recognizing further losses in consolidated results since FY 2021-22, resulting in the identical P&L figures. The company confirmed that segment assets and liabilities remain distinct between the two statements.
- Clarification issued for the financial results of the quarter ended June 30, 2026
- Losses in Joint Venture (Compo Advics) have exceeded the company's investment value
- Recognition of JV losses in consolidated results was discontinued starting FY 2021-22 per Ind AS 28
- Segment Assets and Segment Liabilities remain different between standalone and consolidated results
- Company maintains a massive investment portfolio of Rs 962.19 Cr as per latest annual data
Financial Performance
Revenue Growth by Segment
Composite Products revenue grew 13.4% YoY to INR 284.27 Cr in FY25 from INR 250.69 Cr in FY24. Investment segment revenue was INR 40.81 Cr, a decrease from INR 47.22 Cr in FY24. Trading in Commodity contributed INR 10.15 Cr in H1 FY26.
Profitability Margins
Operating profit margin improved to 18.10% in FY25 from 17.54% in FY24. PAT margin stood at 10.77% in FY25 compared to 11.56% in FY24, a 7% decrease due to higher unallocable expenses and exceptional items.
EBITDA Margin
Operating profit was INR 58.84 Cr in FY25 (18.1% margin) compared to INR 52.26 Cr in FY24 (17.5% margin), showing a YoY improvement of 12.6% in absolute core profitability.
Capital Expenditure
The company consistently invests in capital expenditure annually to match growing demand and depreciation costs; depreciation for FY25 was INR 10.33 Cr.
Credit Rating & Borrowing
Acuité maintains a healthy financial risk profile for HCL. The company is virtually debt-free with a Debt-Equity ratio of 0.00 and an exceptionally high Interest Coverage Ratio of 533.20 in FY25.
Operational Drivers
Raw Materials
Materials consumed (resins, fibers, and chemicals for friction materials) totaled INR 143.26 Cr in FY25, representing 43.9% of total income.
Capacity Expansion
Current capacity is not specified in MT, but the company reported sales growth of 9.00% in OEM and rail segments, supported by annual CAPEX to match demand.
Raw Material Costs
Raw material costs were INR 143.26 Cr in FY25, up 1.4% from INR 141.27 Cr in FY24. Procurement strategies focus on continuous innovation and certification to optimize material usage.
Manufacturing Efficiency
Inventory turnover ratio improved significantly by 22% to 22.00 in FY25 from 18.01 in FY24, indicating higher operational efficiency.
Strategic Growth
Expected Growth Rate
10-12%
Growth Strategy
Growth will be driven by increasing demand in the railway segment and improved positioning in OEM and aftermarket segments. The company utilizes a large investment portfolio (INR 962.19 Cr) to generate stable secondary income and funds for CAPEX.
Products & Services
Composite products, friction materials for railways, automotive OEMs, and the aftermarket.
Brand Portfolio
Hindustan Composites (HCL).
New Products/Services
Continuous product innovation and certification are ongoing to maintain market share in the rail and OEM segments.
Market Expansion
Focusing on significantly improving position in OEM and aftermarket segments beyond the core railway business.
Strategic Alliances
Joint Venture: Compo Advics (India) Pvt. Ltd (49% stake). HCL discontinued recognizing losses in 2021 as they exceeded the investment value.
External Factors
Industry Trends
The industry is seeing increased demand from the railway segment. HCL is positioning itself by investing in CAPEX and maintaining a debt-free balance sheet to capture this 10-12% expected growth.
Competitive Landscape
Key competitors are not named, but HCL competes in the OEM and aftermarket friction material segments.
Competitive Moat
Moat is built on product certifications and a strong presence in the specialized railway friction materials market. The INR 1,137.19 Cr total equity provides a massive financial buffer against competitors.
Macro Economic Sensitivity
Highly sensitive to capital market performance due to the INR 962.19 Cr investment portfolio (40% equity exposure).
Consumer Behavior
Shift towards higher demand for certified and innovative composite products in the rail and automotive sectors.
Regulatory & Governance
Industry Regulations
Compliance with SEBI (Prohibition of Insider Trading) Regulations 2015 and IND AS 28 for Joint Venture accounting.
Taxation Policy Impact
Effective tax rate for FY25 was approximately 21.7% (INR 9.71 Cr tax on INR 44.71 Cr PBT).
Legal Contingencies
Exceptional item of INR 12.75 Cr in FY25 for the settlement of a disputed claim of ex-workmen and related expenses.
Risk Analysis
Key Uncertainties
Mark-to-Market volatility in the INR 962.19 Cr investment portfolio could impact net profit by over 20% in a market downturn.
Third Party Dependencies
Dependency on professional fund managers for the investment portfolio and Indian Railways for the core segment.
Technology Obsolescence Risk
Mitigated through continuous product innovation and obtaining new certifications for composite materials.
Credit & Counterparty Risk
Debtors turnover ratio of 6.41 indicates stable but slightly declining collection efficiency (down 2% YoY).
