Sigachi Industries Stock: For investors keeping an eye on small cap pharma stocks, Thursday turned into an exciting day as Sigachi Industries saw its shares rally by nearly 17 percent in intra day trade. The surge came just days before the company’s dividend record date, sparking renewed optimism in a stock that has otherwise faced a tough year.
The Hyderabad-based pharmaceutical company, best known for manufacturing microcrystalline cellulose a key excipient in medicines has fixed September 16, 2025, as the record date for its upcoming dividend payout. In its AGM report earlier this month, Sigachi’s board recommended a 10 percent dividend, translating to Rs0.10 per equity share. The total dividend outgo is expected to be around Rs3.82 crore, for which provisions have already been made in its financial books.
Strong Revenues, Softer Profits
While the excitement around the dividend has fueled buying, the company’s recent earnings tell a more nuanced story. In Q1 FY26, Sigachi reported an 11 percent drop in consolidated net profit to Rs13.26 crore compared to Rs15.03 crore in the same quarter last year. However, revenue from operations surged 23 percent year on year, rising to Rs128.2 crore against Rs104.1 crore.
The profit decline was largely attributed to higher expenses, which jumped to Rs107.7 crore from Rs94.1 crore a year ago. Still, the strong revenue growth reflects healthy demand and a resilient business model, even as margins faced some pressure.
Stock Performance: From Steep Losses to Recovery Signs
Thursday’s sharp rally pushed Sigachi shares to a day’s high of Rs36.83, up 16.7 percent. This comes as a welcome relief for shareholders, as the stock has been on a rough ride in the past year losing over 43 percent in value over 12 months and down 35 percent in the last three months alone.
Interestingly, September has brought some respite, with the stock gaining over 17.5 percent this month after steep declines in July and August. The momentum, fueled by the dividend news, has brought the stock back into investor focus just ahead of the record date.
About Sigachi Industries
Founded as a leader in cellulose based excipients, Sigachi Industries plays a vital role in the pharmaceutical supply chain. Beyond pharma, its offerings also extend to the nutraceutical and food industries, making it a diversified yet specialized player in the excipient market.
As the dividend date approaches and the stock shows early signs of revival, investors will be keenly watching if Sigachi can build on this momentum and deliver sustainable long term growth.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Investors are advised to do their own research or consult a financial advisor before making any investment decisions.
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