Nirlon Limited (market cap: ₹5,662 crore) delivered impressive dividend performance in FY26, paying ₹30 per share compared to ₹26 in FY24 and FY25. The company maintains a 4.8% dividend yield at current prices of ₹628 as of August 27. According to The Financial Express, Nirlon's payout policy includes one interim dividend (usually in February) and one final dividend annually (in September). The company paid 78% of net profit as dividends in FY26, with the highest payout in four years compared to previous years.
The company generated ₹434 crore free cash flow in FY26, converting a significant portion of its ₹669 crore revenue into operating cash flows. As reported by The Financial Express, Nirlon spent only ₹43.5 crore on routine upgrades and maintenance during FY26. The company maintains ₹341 crore in interest-free cash security deposits from tenants, providing substantial operational funding. With ₹277.8 crore in fixed deposits and total cash balances of ₹297.8 crore, Nirlon demonstrates strong liquidity positioning.
Nirlon's revenue model centers on two key assets: Nirlon Knowledge Park (NKP) in Goregaon and Nirlon House in Worli, Central Mumbai. According to The Financial Express, 88.2% of FY26 revenue (₹590.1 crore) comes from license fee income, with 99.8% occupancy achieved in Q1FY27. The company operates on a core operating lease model with 15% rent increases every three years and 4.75% annual escalations in new agreements. Four key customers contributed ₹454.3 crore (67.9% of operational revenue) in FY26, demonstrating strong client concentration.
Nirlon reported strong financial growth with revenue growing at 16% CAGR over five years to ₹669 crore in FY26, up 5.2% year-on-year. As reported by The Financial Express, net profit grew at 22% CAGR to ₹346 crore, representing a 58.6% increase from FY25's ₹218.2 crore. The company achieved EBITDA of ₹535.4 crore with 78.4% margins and ROE of 83.8% and ROCE of 29.1%. Q1FY27 showed continued momentum with revenue up 3% to ₹168 crore and net profit rising 18.8% to ₹69.4 crore.
Nirlon's dividend history shows consistent payouts with ₹15 per share interim dividends in February 2026 and September 2025, and ₹11 per share final dividends in September 2025 and September 2024. The company's upcoming dividend schedule includes an interim dividend of ₹15 per share due February 20, 2026, and a final dividend of ₹15 per share scheduled for September 3, 2026. This consistent dividend pattern demonstrates the company's commitment to returning value to shareholders while maintaining strong operational cash flows.
