Chellarams Plc FY 2026 Review: Losses, Debt Pressure and Dividend Concerns

Chellarams Plc’s standalone business remained under pressure in the year ended 31 March 2026. The company recorded an operating loss of ₦308.3 million and a net loss of ₦172.9 million. Although group profit before tax rose to ₦657.5 million, the improvement was largely linked to a ₦907.5 million foreign-exchange gain and rental income rather than stronger core trading performance. The group reported current assets of ₦8.05 billion against current liabilities of ₦16.91 billion, leaving a working-capital deficit of ₦8.86 billion. Total group debt stood at ₦4.87 billion, while cash was ₦234.9 million. Finance charges of ₦948.4 million also exceeded operating profit of ₦698.5 million, highlighting pressure on cash flow and debt servicing. No dividend was recommended because the group retained accumulated losses of ₦9.31 billion. Positive equity depends heavily on a ₦13.18 billion property revaluation reserve. The analysis raises concerns about liquidity, reliance on refinancing and asset income, low share-trading volume, and the potential for shareholder dilution if debt restructuring becomes necessary.

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