The board of MRF Ltd. has approved the joint-highest dividend payout for its shareholders alongside its fourth quarter results reported on Thursday, May 7. According to reports from The Economic Times, the board approved a final dividend of ₹229 per share, taking the total dividend payout for financial year 2026 to ₹235 per share. This represents the same dividend amount as the previous year's final payout, demonstrating consistency in the company's shareholder returns strategy. The dividend is subject to approval from shareholders at its ensuing Annual General Meeting (AGM), with the record date for dividend payment yet to be disclosed. The company has already declared and paid two interim dividends of ₹3 per share for the financial year ended March 31, 2026, translating to 30% each. As per The Economic Times, the company has not yet disclosed the record date for the dividend payment.
For the March quarter, MRF reported robust financial results with standalone net profit jumping 37% to ₹680 crore compared to the year-ago period, as reported by The Economic Times. The company's revenue from operations increased by 14% year-on-year to ₹7,908 crore from ₹6,944 crore in the previous year's fourth quarter. The company's EBITDA increased by 21.5% year-on-year to ₹1,305.3 crore, while margins expanded by 100 basis points to 16.2% from 15.2% last year, indicating improved operational efficiency and strong operational performance across all business segments. Profit before exceptional items and tax increased 37% to ₹885 crore, compared with ₹645 crore a year earlier. After including an exceptional gain of ₹15 crore, profit before tax stood at ₹900 crore, marking a 39% rise from the March 2025 quarter. Sequentially, profit remained broadly flat against ₹679.1 crore reported in Q3 FY26, while revenue marginally declined from ₹7,933.7 crore in the December quarter. Total income for the quarter stood at ₹8,041.3 crore, up from ₹7,055.3 crore in Q4 FY25.
For the full financial year 2026, MRF demonstrated strong annual performance with revenue from operations growing 11% to ₹30,652 crore from ₹27,665 crore in FY25, as reported by The Economic Times. Total income for the year also rose 11% to ₹31,140 crore from ₹28,068 crore. Annual net profit increased 29% to ₹2,355 crore compared with ₹1,823 crore in the previous financial year. Profit before tax for FY26 stood at ₹3,133 crore, up 29% from ₹2,420 crore year earlier. The company's EBITDA for the year rose 21.3% year-on-year to ₹1,304 crore, while margins expanded by 100 basis points to 16.2% from 15.2% last year, indicating sustained operational improvements throughout the fiscal year. Earnings per share stood at ₹1,604.37 during the quarter against ₹1,601.33 in the preceding quarter and ₹1,173.86 in Q4 FY25.
During Q4 FY26, MRF faced increased operational costs with total expenses rising to ₹7,156.7 crore from ₹6,410.2 crore last year, largely due to higher raw material and employee-related costs. Material consumption increased to ₹4,944.6 crore from ₹4,679.7 crore, while employee benefit expenses climbed to ₹537.1 crore from ₹458.9 crore. However, finance costs declined sequentially to ₹70.6 crore from ₹73.6 crore in Q3 FY26, aiding overall profitability. The company also recorded an exceptional gain of ₹15.2 crore during Q4 FY26, compared with an exceptional loss of ₹77.2 crore in the previous quarter. The company reassessed liabilities linked to implementation of new labour codes and revised the estimated past service cost impact to ₹61.99 crore as of March 31, 2026. During the quarter, MRF redeemed in full ₹150 crore worth of listed non-convertible debentures, strengthening its balance sheet position.
Following the announcement, shares of MRF were trading nearly 1% higher at ₹1,31,450 on the NSE on Thursday afternoon, according to The Economic Times. However, the stock remains down 20% from its record high level of ₹1,63,600, indicating some profit-taking after the recent rally. The strong quarterly performance and consistent dividend policy continue to support investor confidence in the company's growth trajectory and financial stability. The company's ability to deliver double-digit revenue growth while maintaining improved margins demonstrates effective operational management and market positioning in the competitive tyre industry.
