HD Fire Protect Limited dividend exceeded FY26 annual profit

HD Fire Protect Limited paid Rs 140.18 crore in dividends in FY26, exceeding its Rs 116.79 crore profit for the year by Rs 23.39 crore. The cash-flow statement records the distribution, while related-party disclosures list Rs 140.19 crore of dividends to directors, relatives and an entity connected with key managerial personnel.

How did HD Fire Protect dividends exceed FY26 annual profit?

HD Fire Protect’s FY26 dividend exceeded annual profit because the company paid Rs 140.18 crore of dividends during the year ended March 31, 2026, against reported profit of Rs 116.79 crore. The distribution was Rs 23.39 crore above profit and represented about 120% of FY26 profit. The profit figure follows current tax expense of Rs 41.17 crore and a deferred-tax credit of Rs 1.97 crore.

The gap arose because dividend payment and annual profit are different financial-statement measures. Profit is an accounting result for the year, whereas the Rs 140.18 crore dividend appears as a financing cash outflow in the cash-flow statement. The supplied pages do not state which specific reserves or prior-period earnings were used to support the FY26 distribution, so they do not establish the source of funds beyond the company’s reported cash movements.

The FY26 payment was materially larger than distributions in the preceding two financial years. Dividend paid increased by Rs 84.03 crore from Rs 56.15 crore in FY25, while FY26 profit increased by Rs 7.07 crore from Rs 109.72 crore. In FY24, HD Fire Protect paid Rs 19 lakh of dividends while reporting Rs 87.92 crore of profit.

Who received HD Fire Protect’s disclosed related-party dividends?

HD Fire Protect disclosed Rs 140.19 crore of FY26 dividend transactions involving directors, relatives of directors and Hiren Dharamshi HUF, described as an entity in which key managerial personnel and relatives have control or significant influence. India Accounting Standard 24, or Ind AS 24, governs the related-party disclosure. The listed amount is Rs 1 lakh higher than the cash-flow statement’s Rs 140.18 crore dividend payment because the underlying disclosures are presented in millions and rounded when converted to crore.

Harish Dharamshi received Rs 78.68 crore, the largest disclosed FY26 dividend amount. That represented about 56.1% of the Rs 140.19 crore listed related-party dividend total. Kusum Dharamshi received Rs 24.99 crore, Miheer Ghotikar received Rs 14.71 crore, Parika Ghotikar received Rs 9.28 crore and Anik Dharamshi received Rs 5.97 crore.

Those five named recipients together received Rs 133.63 crore, or about 95.3% of the disclosed related-party dividend total. Narendra Dharamshi received Rs 4.81 crore and Hiren Dharamshi HUF received Rs 63 lakh. Frenal Ladoja, Usha Shah, Avika Ghotikar and Riaan Ghotikar together received Rs 1.12 crore.

The disclosure identifies the recipients’ relationships but does not separately classify every dividend recipient as a promoter or promoter-group member. It also does not state that the related-party recipients are identical to the promoter selling shareholders named in the offer-expense disclosure. The figures therefore show concentration among listed related parties, but do not establish the exact amount received by a defined promoter group from the supplied pages.

What cash flows accompanied HD Fire Protect’s FY26 dividend?

HD Fire Protect generated Rs 92.49 crore of net cash from operating activities in FY26, lower than Rs 98.32 crore in FY25. Cash generated from operations before taxes was Rs 133.08 crore, and taxes paid were Rs 40.59 crore. The FY26 dividend of Rs 140.18 crore was consequently Rs 47.69 crore greater than FY26 net operating cash generation.

Investing activities produced a net cash inflow of Rs 40.97 crore in FY26, compared with a net cash outflow of Rs 52.56 crore in FY25. The FY26 investing section includes Rs 37.13 crore for investment in shares and mutual funds, Rs 21.26 crore of realised gains on investments, Rs 13.74 crore of capital work-in-progress spending and Rs 4.15 crore of property, plant and equipment purchases. The cash-flow statement presents the aggregate investing result as an inflow.

Financing activities used Rs 136.06 crore in FY26, principally alongside the Rs 140.18 crore dividend payment. Cash and cash equivalents were Rs 14.87 crore at March 31, 2026, compared with Rs 17.47 crore at March 31, 2025. Bank balances other than cash and cash equivalents declined to Rs 4.57 crore from Rs 6.08 crore over the same dates.

How did the distribution compare with HD Fire Protect’s operations and balance sheet?

HD Fire Protect increased revenue from operations by about 13.0% to Rs 489.28 crore in FY26 from Rs 432.80 crore in FY25. Total income rose to Rs 505.12 crore from Rs 450.68 crore, while total expenses increased to Rs 349.14 crore from Rs 303.96 crore. Profit before tax increased to Rs 155.98 crore from Rs 146.71 crore, but profit for the year rose by Rs 7.07 crore to Rs 116.79 crore.

Total equity stood at Rs 377.15 crore at March 31, 2026, including Rs 289.53 crore of other equity. That was Rs 20.08 crore below total equity of Rs 397.23 crore at March 31, 2025. Total assets declined to Rs 432.03 crore at March 31, 2026 from Rs 450.08 crore a year earlier.

Working-capital and capital-investment balances changed during FY26. Capital work-in-progress rose to Rs 17.64 crore at March 31, 2026 from Rs 4.07 crore at March 31, 2025, while inventories increased to Rs 87.36 crore from Rs 69.88 crore. Trade receivables increased to Rs 93.71 crore from Rs 57.78 crore, although the FY26 cash-flow statement records a Rs 35.85 crore cash inflow under trade-receivable movements.

What do the offer disclosures say about selling shareholders?

HD Fire Protect disclosed Rs 6.85 crore of offer-related costs incurred on behalf of promoter selling shareholders through March 31, 2026, rising to Rs 6.98 crore through June 30, 2026. The identified promoter selling shareholders are Harsim Narshi Dharamshi and Kussam Darshami. The company states that these costs exclude the related-party dividend disclosures and are connected to the offer process.

Under an offer agreement dated September 24, 2025, each promoter selling shareholder is required to reimburse HD Fire Protect for offer-related expenses on a pro-rata basis according to shares expected to be offered to the public. The supplied pages do not give the number of shares expected to be sold, the proportion of holdings involved, or a date for reimbursement. Those missing details limit what can be concluded about the eventual cash effect of the reimbursement mechanism.

Conclusion

HD Fire Protect’s FY26 financial statements show a Rs 140.18 crore dividend cash outflow that was Rs 23.39 crore higher than the year’s Rs 116.79 crore profit. The related-party schedule records nearly the same amount, Rs 140.19 crore, across directors, their relatives and a connected Hindu Undivided Family, with Rs 78.68 crore attributed to Harish Dharamshi.

The next disclosed financial update should clarify whether dividend payments continue to exceed annual profit and FY26 operating cash flow of Rs 92.49 crore. Readers can also watch for the reimbursement of Rs 6.98 crore of offer expenses incurred through June 30, 2026, because the September 24, 2025 agreement requires the named promoter selling shareholders to bear those costs pro rata.