India's Costliest Stock MRF Stuns With Record Q2 Profits BUT Declares Tiny Rs 3 Dividend! See Why Investors Are Talking!

Author

Akshat Lakshkar | Whalesbook News Team

Detailed Coverage:

Madras Rubber Factory (MRF) Ltd., renowned as India's most expensive stock, has released its second-quarter financial results for FY2026, showing a healthy operational performance. The tyre manufacturer reported a consolidated Profit After Tax (PAT) of Rs 525.6 crore, an increase of 11.7% year-on-year from Rs 470.6 crore in Q2 FY25. Total revenue also saw a growth of 7%, reaching Rs 7,378 crore compared to Rs 6,881 crore in the same period last year. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) grew by 11.1% to Rs 1,125 crore, and the company's margin improved to 15.3%.

However, the announcement that has captured significant investor attention is the declaration of an interim dividend of just Rs 3 per equity share (30% of face value Rs 10). The record date for determining eligible shareholders for this dividend has been fixed as November 21, 2025, and the dividend payment will commence on or after December 5, 2025.

Impact: This news is likely to have a moderate impact on investor sentiment regarding MRF Ltd. While the strong financial results indicate a healthy business, the minuscule dividend payout relative to the stock's high price might disappoint shareholders seeking higher returns through dividends. The market reaction will depend on whether investors prioritize the company's underlying business growth or its dividend policy. Rating: 6/10

Difficult Terms Explained: Interim Dividend: A dividend payment made by a company to its shareholders that is smaller than the final dividend and is distributed in the middle of the financial year, before the company's full-year earnings are finalized. Record Date: A specific date set by a company to identify the shareholders who are eligible to receive a declared dividend or other corporate action. Only shareholders who own the stock on this date will be entitled to the dividend. Profit After Tax (PAT): The profit a company has left after deducting all its expenses, including taxes, from its total revenue. EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure of a company's operating performance before accounting for financing decisions, accounting decisions, and tax environments.