Hold

Last Updated: 24 Feb 2026, 09:23 pm IST | Report Date: Feb 24, 2026

DIC India Limited Stock Analysis

Name: DIC India Limited (DICIND) Stock Analysis
Brand: NSE India
Rating: 6.5 (1 reviews)

DICIND NSE India

DIC India Limited (DICIND) is a India-based company listed on NSE. This AI-powered analysis provides investment insights based on quarterly earnings reports and financial performance metrics.

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DIC India delivers a mixed performance for FY2025 with revenue growth of 1.16% YoY to Rs. 89,178.85 lakh, but net profit declined 11.07% to Rs. 1,737.66 lakh despite an improved Q4. The company maintains healthy cash generation with operating cash flow of Rs. 4,278.43 lakh and strong liquidity (Rs. 6,454.53 lakh cash), while remaining essentially debt-free. However, profitability is pressured by exceptional charges totaling Rs. 236.45 lakh related to new labour codes and elevated employee costs (up 7.62% YoY to Rs. 7,510.25 lakh), which compressed margins. The proposed final dividend of Rs. 3 per share demonstrates management confidence, though EPS declined from Rs. 21.29 to Rs. 18.93.

Based on: DIC India Limited - Financial Results (24/2/2026) (Feb 24, 2026)

+ Key Strengths

Strong cash position of Rs. 6,454.53 lakh (up 64.96% from Rs. 3,912.73 lakh) with robust operating cash flow of Rs. 4,278.43 lakh, providing excellent liquidity cushion

Debt-free balance sheet with zero term borrowings and only minimal lease liabilities of Rs. 408.73 lakh, ensuring financial flexibility

Improved receivables collection with days sales outstanding reduction evident from cash flow improvement, despite trade receivables increasing to Rs. 26,343.85 lakh from Rs. 24,104.20 lakh

Consistent dividend policy with final dividend of Rs. 3 per share recommended for FY2025, signaling management confidence in cash flows

Q4 FY2025 sequential improvement with revenue rising to Rs. 23,193.07 lakh from Rs. 22,316.99 lakh in Q3, showing positive quarterly momentum

Inventory management discipline with inventories at Rs. 12,561.31 lakh (up only 5.66% YoY) despite revenue growth, indicating efficient working capital deployment

- Key Risks

Net profit declined 11.07% YoY from Rs. 1,953.90 lakh to Rs. 1,737.66 lakh, with EPS falling from Rs. 21.29 to Rs. 18.93, indicating margin compression

Exceptional charge of Rs. 236.45 lakh due to new Labour Codes impact on gratuity provisions creates uncertainty around future compliance costs as rules are still being finalized

Employee benefit expenses surged 7.62% YoY to Rs. 7,510.25 lakh, outpacing revenue growth and pressuring operating margins

Single segment concentration risk with the company operating only in printing inks manufacturing per Ind AS-108 disclosure, limiting diversification

Subdued revenue growth of only 1.16% YoY to Rs. 89,178.85 lakh suggests limited pricing power or volume expansion in core markets

Kolkata plant closure litigation remains sub-judice with Labour Department appeal pending at Calcutta High Court, creating residual legal uncertainty despite management's favorable legal opinion

Forward Outlook

The company successfully closed its Kolkata manufacturing plant in March 2024 and wrote back Rs. 236.59 lakh in provisions during the previous year, though related litigation continues. No major capacity expansions, new product launches, or strategic initiatives were disclosed in the current report. The reappointment of an Independent Director and appointment of new cost auditors indicate routine governance activities rather than transformational changes. The impact of the four newly notified Labour Codes (announced November 21, 2025) will require continued monitoring as Central/State Rules are finalized, potentially affecting future cost structures. With Q4 showing sequential revenue improvement and strong cash generation, near-term performance depends on management's ability to control rising employee costs, maintain pricing discipline in the printing inks segment, and successfully navigate regulatory changes without further exceptional charges.

All Scores

Date	Report	Score	Sentiment	AI
Feb 24, 2026	DIC India Limited - Financial Results (24/2/2026)	6.5	Hold	Claude
DIC India delivers a mixed performance for FY2025 with revenue growth of 1.16% YoY to Rs. 89,178.85 lakh, but net profit declined 11.07% to Rs. 1,737.66 lakh despite an improved Q4. The company maintains healthy cash generation with operating cash flow of Rs. 4,278.43 lakh and strong liquidity (Rs. 6,454.53 lakh cash), while remaining essentially debt-free. However, profitability is pressured by exceptional charges totaling Rs. 236.45 lakh related to new labour codes and elevated employee costs (up 7.62% YoY to Rs. 7,510.25 lakh), which compressed margins. The proposed final dividend of Rs. 3 per share demonstrates management confidence, though EPS declined from Rs. 21.29 to Rs. 18.93. STRENGTHS: Strong cash position of Rs. 6,454.53 lakh (up 64.96% from Rs. 3,912.73 lakh) with robust operating cash flow of Rs. 4,278.43 lakh, providing excellent liquidity cushion / Debt-free balance sheet with zero term borrowings and only minimal lease liabilities of Rs. 408.73 lakh, ensuring financial flexibility / Improved receivables collection with days sales outstanding reduction evident from cash flow improvement, despite trade receivables increasing to Rs. 26,343.85 lakh from Rs. 24,104.20 lakh / Consistent dividend policy with final dividend of Rs. 3 per share recommended for FY2025, signaling management confidence in cash flows / Q4 FY2025 sequential improvement with revenue rising to Rs. 23,193.07 lakh from Rs. 22,316.99 lakh in Q3, showing positive quarterly momentum / Inventory management discipline with inventories at Rs. 12,561.31 lakh (up only 5.66% YoY) despite revenue growth, indicating efficient working capital deployment RISKS: Net profit declined 11.07% YoY from Rs. 1,953.90 lakh to Rs. 1,737.66 lakh, with EPS falling from Rs. 21.29 to Rs. 18.93, indicating margin compression / Exceptional charge of Rs. 236.45 lakh due to new Labour Codes impact on gratuity provisions creates uncertainty around future compliance costs as rules are still being finalized / Employee benefit expenses surged 7.62% YoY to Rs. 7,510.25 lakh, outpacing revenue growth and pressuring operating margins / Single segment concentration risk with the company operating only in printing inks manufacturing per Ind AS-108 disclosure, limiting diversification / Subdued revenue growth of only 1.16% YoY to Rs. 89,178.85 lakh suggests limited pricing power or volume expansion in core markets / Kolkata plant closure litigation remains sub-judice with Labour Department appeal pending at Calcutta High Court, creating residual legal uncertainty despite management's favorable legal opinion

What is the AI Stock Score?

The AI Stock Score is a composite rating from 0-10 generated by analyzing quarterly earnings reports using three leading AI models (Google Gemini, Anthropic Claude, and OpenAI ChatGPT). Each AI independently evaluates financial performance, growth prospects, risks, and market positioning to provide an objective investment perspective.

How should I interpret Buy/Hold/Sell ratings?

Buy (7.0-10.0): Strong fundamentals and positive outlook. Hold (4.0-6.9): Mixed signals, suitable for existing positions. Sell (0-3.9): Deteriorating fundamentals or significant risks. These are AI-generated opinions for informational purposes only, not investment advice.

How is the composite score calculated?

The composite score is the mathematical average of the latest scores from each AI provider. For example, if Gemini rates 7.5, Claude rates 4.5, and ChatGPT rates 6.0, the composite score would be (7.5+4.5+6.0)/3 = 6.0. This multi-AI approach reduces bias from any single model.

How often are scores updated?

Scores are automatically generated within hours of quarterly earnings results being published on NSE. The system monitors earnings announcements 4 times daily and processes new reports immediately. Check the "Last Updated" date at the top of this page for the most recent analysis timestamp.

Is this financial advice?

No. This is AI-generated analysis for informational and educational purposes only. MarketsHost is not a SEBI-registered Research Analyst or Investment Adviser. AI models can produce inaccurate results. Always consult a qualified financial advisor and conduct your own due diligence before making investment decisions.