HGS India paid ₹7.68 crore dividend after FY25 buyback

HGS India paid ₹7.68 crore in dividends in the financial year ended March 31, 2026, or FY26, after buying back shares for ₹13.04 crore in FY25. The restated consolidated cash-flow statement also records ₹3.02 crore of tax on the FY25 buyback, taking the identified FY25 shareholder-distribution cash outflow to ₹20.34 crore before finance costs.

How much cash did HGS India return to shareholders?

HGS India returned ₹7.68 crore through dividends in FY26, compared with ₹4.27 crore in FY25 and ₹3.32 crore in FY24. The FY26 dividend payment was the only shareholder-distribution item reported in financing cash flows for the year; the same section also included ₹38,000 of finance-cost payments and ₹1,000 of net proceeds from short-term borrowings.

HGS India’s FY25 cash distributions were higher because the company paid ₹13.04 crore to buy back shares alongside its ₹4.27 crore dividend. The cash-flow statement separately reports ₹3.02 crore of tax on the buyback of equity shares, while the net financing cash outflow for FY25 was ₹20.43 crore, compared with ₹7.68 crore in FY26.

The FY26 dividend was 80% higher than the ₹4.27 crore paid in FY25, based on reported cash payments. No buyback payment was reported in FY26, and the financing cash outflow therefore fell by ₹12.75 crore from FY25 despite the increase in dividend payments.

Did HGS India’s operating cash flow cover the FY26 dividend?

HGS India generated ₹6.14 crore of net cash from operating activities in FY26, below ₹14.09 crore in FY25, while paying ₹7.68 crore in dividends. The FY26 dividend was therefore ₹1.54 crore greater than the year’s reported operating cash flow, although the restated statements do not assign a specific funding source to the dividend.

The fall in FY26 operating cash flow occurred despite profit before tax rising to ₹15.42 crore from ₹13.82 crore in FY25. Cash generated from operations declined to ₹9.71 crore from ₹16.28 crore, as inventory absorbed ₹7.37 crore of cash in FY26 after providing a ₹4.42 crore cash release in FY25; income taxes paid also increased to ₹3.57 crore from ₹2.19 crore.

HGS India reported FY26 profit after tax of ₹11.64 crore, compared with ₹10.51 crore in FY25 and ₹4.00 crore in FY24. The FY26 dividend equalled about 66% of FY26 profit after tax, while the combined FY25 dividend and share-buyback payment of ₹17.31 crore exceeded FY25 profit after tax before the separately reported ₹3.02 crore buyback tax.

What changed in HGS India’s reserves and share capital?

HGS India’s reserves and surplus rose to ₹90.66 crore at March 31, 2026 from ₹87.97 crore at March 31, 2025, despite the ₹7.68 crore FY26 dividend payment. Shareholders’ funds increased to ₹99.19 crore from ₹95.08 crore over the same period, alongside FY26 profit after tax of ₹11.64 crore.

HGS India’s share capital was ₹8.53 crore at March 31, 2026, compared with ₹7.11 crore a year earlier and ₹9.48 crore at March 31, 2024. The supplied summary shows the FY25 buyback payment and these year-end share-capital balances, but does not attribute the changes in share capital to particular corporate actions.

At April 30, 2026, HGS India reported reserves and surplus of ₹91.80 crore, share capital of ₹8.53 crore and shareholders’ funds of ₹100.33 crore. This one-month position followed the March 31, 2026 financial year and is not a full-year earnings measure.

What was HGS India’s liquidity position after the FY26 dividend?

HGS India reported cash and bank balances of ₹5.83 crore at March 31, 2026, down from ₹6.93 crore at March 31, 2025. Cash and cash equivalents, the narrower measure used in the cash-flow statement, were ₹4.56 crore at March 31, 2026, compared with ₹5.78 crore one year earlier after a ₹1.22 crore net decrease during FY26.

HGS India also held ₹15.72 crore of current investments at March 31, 2026, compared with ₹16.42 crore at March 31, 2025. The reported balance-sheet cash and bank balances plus current investments totalled ₹21.54 crore at March 31, 2026, but the statements do not state that all current investments were available for dividends or buybacks.

Inventory increased to ₹45.33 crore at March 31, 2026 from ₹37.96 crore at March 31, 2025, matching the ₹7.37 crore working-capital cash outflow reported in FY26. Trade receivables rose to ₹3.85 crore from ₹2.80 crore, while the cash-flow statement recorded a ₹97 lakh receivables-related operating cash outflow; the supplied summary does not explain the difference between the balance-sheet movement and cash-flow line item.

HGS India had no long-term borrowings at March 31, 2026 or March 31, 2025, while short-term borrowings were ₹1,000 at March 31, 2026. The balance sheet therefore does not identify long-term borrowings as a funding source for the FY26 dividend, but it does not establish the source of an individual payment.

Conclusion

HGS India’s FY25 and FY26 capital allocation included a ₹13.04 crore share buyback, ₹3.02 crore of buyback tax and ₹11.95 crore of dividends. Profit after tax increased from ₹10.51 crore in FY25 to ₹11.64 crore in FY26, but net operating cash flow moved in the opposite direction, declining from ₹14.09 crore to ₹6.14 crore as inventory absorbed ₹7.37 crore of cash.

The supplied April 30, 2026 update reported cash and bank balances of ₹7.60 crore, current investments of ₹17.22 crore and cash and cash equivalents of ₹6.34 crore. HGS India disclosed no further dividend or buyback plan in the supplied summary, leaving future shareholder distributions unresolved.