Mumbai, May 8, 2026 – MRF Ltd, India’s leading tyre manufacturer, has recommended a substantial final dividend of ₹229 per equity share for the financial year 2025-26. The announcement was made alongside the company’s fourth-quarter earnings, highlighting robust growth in profitability and revenue.
Record Dividend Payout
The final dividend of ₹229 per share (on a face value of ₹10) translates to a 2,290% payout ratio. When combined with the two interim dividends of ₹3 each already paid during the year, MRF’s total dividend for FY26 stands at ₹235 per share. This marks one of the highest dividend declarations among listed Indian companies in recent times.
The final dividend is subject to approval by shareholders at the forthcoming Annual General Meeting (AGM). The company is yet to announce the record date for dividend eligibility.
Solid Financial Performance
MRF delivered a strong set of numbers for the January-March 2026 quarter:
- Net Profit rose approximately 37-43% year-on-year to around ₹680-702 crore, compared to ₹498 crore in Q4 FY25.
- Revenue from Operations increased 13-14% YoY to approximately ₹8,044 crore.
For the full financial year FY26, the company reported:
- Revenue of roughly ₹30,652 crore, up 10-11% from the previous year.
- Net Profit grew nearly 29% to about ₹2,355 crore.
The improved performance was attributed to higher sales volumes, a favourable product mix, and enhanced operational efficiencies across its tyre manufacturing operations.
Market Reaction
Following the announcement on May 7, 2026, MRF shares witnessed mild positive movement, rising around 0.5-1% in intraday trading. The stock continued to trade in the ₹1,30,000–1,31,000 range, reflecting investor appreciation for the company’s consistent profitability, strong brand equity, and generous shareholder returns.
MRF has long been regarded as a premium-valued stock in the Indian market, known for its disciplined capital allocation and steady growth in the highly competitive tyre industry.
Outlook
This significant dividend announcement reinforces MRF’s commitment to rewarding shareholders while maintaining a healthy balance sheet. Investors holding shares as of the yet-to-be-announced record date will be eligible for the final dividend. The company’s focus on volume growth, product innovation, and cost management positions it well for sustained performance in the coming years.
Shareholders are advised to watch for official communications regarding the AGM schedule and record date.
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