NALCO Board to Consider Dividend on April 30, Mandates Electronic Payments

Consolidated Net Profit: ₹1,595.15 crore (Q3 FY26)
Revenue: ₹4,730.95 crore (Q3 FY26)

Dividend Decision and Payment Change

The Board of Directors for National Aluminium Company (NALCO) will meet on April 30, 2026, to consider its third interim dividend for the fiscal year 2025-26.

Following new SEBI regulations effective November 2025, NALCO will exclusively disburse dividends through electronic modes. This mandates a discontinuation of physical dividend warrants or cheques.

What Shareholders Need to Know

This move streamlines company operations and ensures compliance with regulatory standards. For shareholders, it's important to ensure their bank account details are accurate in their demat accounts to receive dividends without interruption.

Regulatory Context and Company History

NALCO, a Navratna CPSE, has a consistent record of rewarding shareholders, paying dividends annually since 1992. The shift to electronic payments aligns with SEBI's mandate, effective November 19, 2025, which aims to enhance efficiency and reduce fraud by eliminating physical warrants and cheques.

How Dividend Payments Will Work

• Dividend payments will be processed exclusively through electronic transfers like NEFT and RTGS.
• Physical dividend warrants and cheques will no longer be issued.
• Shareholders must ensure their bank details are updated with their depository participants (for demat holdings) or the company's registrar (for physical holdings).
• Updating details promptly is crucial to prevent any delays or non-receipt of dividend payments.

Regulatory Compliance Note

Separately, NALCO recently incurred fines totaling ₹10.86 lakh from BSE and NSE for non-compliance with SEBI LODR regulations regarding independent director appointments. This highlights ongoing regulatory compliance considerations for CPSEs where director appointments involve government control.

Dividend Yield Comparison

NALCO's dividend yield was approximately 2.4% for FY2024-2025. In comparison, peers like Hindalco Industries reported yields around 0.48%-0.81%, and Vedanta Ltd. offered about 4.58%-6.03%. These figures reflect differing dividend payout strategies among industry players.

What to Watch For

• The quantum of the 3rd interim dividend for FY 2025-26, following the April 30 Board meeting.
• Shareholders confirming their bank details are updated with demat service providers.
• NALCO's future announcements on ex-dividend and payment dates.