Vesuvius India ₹1.50 Dividend FY2025 | Record Date, Yield & Sustainability

Dividend Snapshot

Company

Vesuvius India Limited

NSE: VESUVIUS | BSE: 520113

Refractories & Steel Flow Control (Capital Goods)

Dividend

₹1.50 per share (Final)

150% of ₹1 face value

For FY ended 31 December 2025

Dividend Yield

~0.32%

at CMP ≈ ₹466*

Payout Ratio

11.5%

of FY25 PAT

Coverage

8.67x

EPS ₹13.01 ÷ DPS

Total Outflow

₹30.45 Cr

20.30 Cr shares

*Current market price must be verified against live NSE/BSE bhavcopy before publication. Yield moves inversely with price.

Dividend Announcement Summary

At its board meeting on 26 February 2026, the Board of Directors of Vesuvius India recommended a final dividend of ₹1.50 per equity share of face value Re. 1 each for the financial year ended 31 December 2025. The recommendation was made under Regulations 30 and 42 of SEBI LODR and was subject to shareholder approval at the Annual General Meeting.

Key points from the filing

Dividend of ₹1.50/share vs ₹1.45/share (split-adjusted) last year — a modest +3.4% increase.
Vesuvius follows a January–December (calendar) financial year, unlike most Indian peers.
The board also approved audited FY2025 results with an unmodified audit opinion.
A new CFO (Mr. Neeraj Kumar Jumrani) was appointed w.e.f. 16 March 2026.

What the wires didn't flag

The equity shares were sub-divided 10-for-1 (₹10 → ₹1 face value) with effect from 10 June 2025. All per-share figures here are on the new Re. 1 base.
FY25 profit includes a one-time land-sale gain of ₹25.26 Cr (pre-tax) from the Visakhapatnam plant closure.
The company remains essentially debt-free with only small lease liabilities.

Key Dates Timeline

Announcement Date

26 February 2026

Board meeting / Reg 30 disclosure

Record Date

30 April 2026 (Thursday)

Company disclosed (Reg 42)

Ex-Date

30 April 2026 (inferred)

Under T+1 settlement the ex-date and record date normally coincide. Not stated in the filing — verify against exchange ex-date circular.

Payment Date

After AGM (7 May 2026)

"Paid thereafter" per filing. Exact date Not Disclosed by Company; statutory outer limit is ~30 days from declaration (≈ early June 2026).

AGM: Thursday, 7 May 2026. To be eligible, shares had to be held as of the record date, 30 April 2026.

Dividend Yield Analysis

Dividend yield = Dividend per share ÷ Current market price. At a market price of about ₹466, the ₹1.50 dividend works out to a yield of roughly 0.32%. This is a low-yield, capital-appreciation stock, not an income stock. The dividend is small relative to the share price because the company retains most of its earnings and the stock trades at a high P/E (about 36x).

Yield reality check

The yield is low for a "good" reason, not a bad one: it reflects a strong share price and a deliberately low payout (11.5%), not a distressed business. A yield chaser will find little here — the appeal, if any, is earnings growth and a fortress balance sheet rather than income.

Yield sensitivity

Share price	Yield on ₹1.50
₹400	0.38%
₹466*	0.32%
₹550	0.27%

*Research-time price; verify before publication.

Dividend History Analysis

All figures restated to the current face value of Re. 1 (post the June 2025 10:1 split) for a like-for-like comparison, per Ind AS 33.

Financial Year (Dec-end)	DPS (₹, adj.)	EPS (₹, adj.)	Payout %	Trend
FY2020	0.70	2.61	~27%	—
FY2021	0.80	3.35	~24%	↑
FY2022	0.82	5.75	~14%	↑
FY2023	1.28	10.49	~12%	↑
FY2024	1.45	13.03	~11%	↑
FY2025	1.50	13.01	~12%	↑

Sources: company filing (FY25); dividend aggregators & Screener.in payout data (earlier years), cross-checked against cash-flow dividend outflows. Pre-FY2020 comparisons omitted rather than shown with unverified restated figures.

Classification: Consistent Payer

Vesuvius has raised its dividend every year over this window — a DPS CAGR of about 16.5% (FY20–FY25) with no cuts or suspensions, including through the COVID year. That places it firmly in the consistent, growing payer bucket.

The non-obvious point

Even as DPS rose, the payout ratio fell from ~27% to ~12% because profits grew far faster than the dividend. And FY25's increase (₹1.45 → ₹1.50, +3.4%) is the slowest raise in years and lags EPS — the dividend is being nudged up, not scaled with earnings.

Financial Performance Analysis

₹ Crore	FY2024	FY2025	Growth
Revenue from operations	1,868.6	2,104.3	+12.6%
EBITDA (operating)	347.4	360.3	+3.7%
EBITDA margin	18.6%	17.2%	−147 bps
Profit before tax (reported)	348.8	356.4	+2.2%
Net profit (reported)	264.5	264.1	−0.2%
EPS (₹, adj.)	13.03	13.01	−0.2%

The operating-leverage break: revenue up, profit flat

This is the single most important story in the numbers, and one aggregator "dividend declared" headlines miss entirely. Revenue rose 12.6% but net profit was flat to marginally lower. Why? Costs outran sales: material cost +26.2%, employee cost +22.4%, other expenses +16.2%, and depreciation +34.5% as the new Visakhapatnam (Al-Si Monolithic) plant came on stream. The result was margin compression of ~147 bps.

Strip out the one-off, and core profit fell

FY25 "Other Income" includes a one-time gain of ₹25.26 Cr (pre-tax; ~₹17.1 Cr after tax) from selling the old Vizag plant land. That is 6.5% of reported PAT. Excluding it, core PBT fell about 5.1% year-on-year and core EPS was roughly ₹12.17 versus the reported ₹13.01. Underlying operating performance was weaker than the headline suggests.

Cash Flow Analysis

Reported profit is an opinion; cash is a fact. In FY25, operating cash flow was ₹177.5 Cr against net profit of ₹264.1 Cr — an OCF-to-PAT conversion of only ~67%, down from a stronger prior year. The gap is working capital: trade receivables rose ₹98 Cr and inventories rose ₹50 Cr as the business scaled, absorbing cash.

Free cash flow & how the dividend is funded

OCF: ₹177.5 Cr
Capex: ₹105.3 Cr (elevated — plant build-out)
FCF before asset sales: ₹72.1 Cr
Dividend outflow: ₹30.45 Cr

The dividend is comfortably funded by current-year free cash flow (~2.4x cover) — no borrowing or reserve draw-down is required.

Two nuances worth flagging

First, reported "FCF" of ~₹102 Cr on some data services is flattered by ₹29.8 Cr of one-time land-sale proceeds. Recurring FCF is closer to ₹72 Cr. Second, cash conversion has softened versus history — worth monitoring if receivables keep climbing.

Balance Sheet Strength

Cash & Bank

₹582 Cr

Borrowings

Nil*

*only ~₹14 Cr leases

Net Worth

₹1,664 Cr

Book Value

~₹82 / sh

Vesuvius runs a net-cash, essentially debt-free balance sheet. The auditors confirmed the company had no loans or borrowings during the year. Cash and bank balances of about ₹582 Cr cover the ₹30.45 Cr dividend roughly 19 times over. In short, affordability is a non-issue; the question is whether the company is too conservative with distributions (see Capital Allocation, in Sustainability below).

Dividend Sustainability Analysis

SUSTAINABLE On every test: earnings, cash flow, cash reserves and balance sheet.

Multi-metric stress test

Earnings cover: 8.67x (EPS ₹13.01 vs DPS ₹1.50) — very high.
FCF cover: ~2.4x on recurring FCF — comfortable.
Cash cover: ~19x on cash & bank — fortress.
Debt: essentially nil — no leverage risk to the payout.

Capital allocation question

With ~₹582 Cr of idle cash and only an 11.5% payout, the debate is not sustainability but under-distribution. Management is retaining heavily to fund capex (the new Vizag plant). A higher dividend, a special dividend, or a buyback are all options it has chosen not to exercise — a capital-allocation stance investors should weigh.

Peer Comparison

Refractory peer	Div Yield	Payout	ROE	ROCE	Debt
Vesuvius India	~0.33%	~12%	15.0%	21.3%	Debt-free
RHI Magnesita India	~0.56%	~31%	~4–5%	~5–7%	Low
IFGL Refractories	~1.1%	~13–29%	~3–11%	~5–15%	Low

Sources: Screener.in and dividend aggregators, research-time. IFGL figures span a range across data providers (a group restructuring is in progress) and should be re-verified. Peer yields/ratios move with price.

The standout: Vesuvius offers the lowest yield of the three but by far the best return ratios — a 21% ROCE and 15% ROE, roughly 3–4x the profitability of RHI Magnesita India on those measures. Peers with higher yields (IFGL, RHIM) are paying out a larger slice of weaker earnings. On a total-quality basis, Vesuvius is the strongest business in the group, which is precisely why the market prices its income so richly (low yield).

Promoter Impact Analysis

Promoter Holding

55.57%

Vesuvius Group (UK)

Promoter Dividend

₹16.92 Cr

of ₹30.45 Cr total

Public/Institutions

₹13.53 Cr

DII 22.0% · FII 4.6% · Public 17.8%

The UK parent (Vesuvius plc) collects the majority — about ₹16.9 Cr of the ₹30.45 Cr payout. Promoter holding has been stable at 55.57% for years, and there is a mirror debate at the parent: with over ₹580 Cr in cash at the Indian arm, a low payout means the promoter is effectively choosing reinvestment over repatriation. Minority holders share proportionally in the same modest distribution and benefit far more from the retained-earnings growth engine than from the dividend cheque itself.

Taxation Analysis

Since FY2020-21, dividends in India are taxed in the hands of the shareholder at their applicable income-tax slab rate (dividend distribution tax was abolished). The company deducts TDS at 10% under Section 194 if a resident shareholder's total dividend from that company in a financial year exceeds ₹5,000 (₹10,000 from FY2025-26). Submitting Form 15G/15H can avoid TDS for those below the taxable threshold.

Worked example (generic, ₹10/share)

1,000 shares × ₹10	₹10,000 gross
TDS @ 10% (deducted at source)	₹1,000
Tax at 30% slab (+ cess)	₹3,000+
Net in hand (30% bracket)	₹7,000

TDS is adjusted against final liability; net depends on your slab. Cess (4%) applies on the tax.

Vesuvius-specific reality

At ₹1.50/share, you'd need to hold over ~6,600 shares for the dividend to cross ₹10,000 and trigger TDS. A holder of 1,000 shares gets ₹1,500 gross — no TDS, and after a 30% slab, ~₹1,050 net. Effective post-tax yield at a 30% slab is roughly 0.22%.

Key Risks

1. Steel-cycle dependence

Refractory demand is tied to steel and metals output. A downturn in Indian steel volumes directly hits Vesuvius' order book and margins.

2. Margin pressure

EBITDA margin compressed ~147 bps in FY25 as raw-material, employee and other costs outran revenue. Continued cost inflation could keep profit growth behind sales.

3. Working-capital drag

Receivables rose ₹98 Cr and debtor days climbed to ~84. Weaker cash conversion (OCF/PAT ~67%) can persist if customer credit stretches further.

4. One-off flattered FY25

A ₹25.3 Cr land-sale gain propped up reported profit. Ex the one-off, core earnings fell — FY26 faces a tougher base.

5. Low-yield, high-valuation stock

At ~36x P/E and ~0.32% yield, the stock offers little income cushion; returns rely on continued earnings growth, which the market already prices in.

6. Litigation & tax disputes

The audit annexure lists disputed indirect-tax and income-tax demands (income-tax amount paid under dispute ~₹92 Cr). Adverse rulings could affect cash, though not the going concern.

What To Monitor

1. EBITDA margin trajectory

Whether the new Vizag plant's operating leverage reverses the FY25 margin dip as utilisation ramps up.

2. Cash conversion & debtor days

Track OCF/PAT and receivable days each quarter; a return toward historic conversion signals healthy growth.

3. Capital allocation of the ₹580 Cr cash

Watch for any move on payout ratio, a special dividend, or a buyback — the biggest potential re-rating lever.

4. Core (ex one-off) earnings growth

FY26 growth versus FY25's one-off-inflated base is the real test of the business.

5. Steel-sector capex & demand

Domestic steel expansion plans and utilisation drive refractory consumption — the top-line engine.

6. New management execution

A new CFO and several new senior leaders joined in early 2026; watch for strategy or capital-policy shifts.

Conclusion

Positives

A consistent, growing dividend (16.5% CAGR, no cuts), a fortress debt-free balance sheet with ~₹582 Cr cash, best-in-class refractory-sector return ratios (ROCE 21%, ROE 15%), and a dividend covered ~8.7x by earnings and ~19x by cash — sustainability is not in question.

Negatives / watch-outs

FY25 net profit was flat despite 12.6% revenue growth; core (ex land-sale) profit actually fell ~5%; EBITDA margins compressed ~147 bps; cash conversion softened; the yield is a thin ~0.32% at a rich ~36x P/E; and a low 11.5% payout leaves a large idle cash balance whose deployment is unresolved.

Net-net, this is a high-quality, low-yield compounder where the dividend is a small, reliable extra rather than the reason to own the stock. We present the positives, negatives, risks and monitoring factors above and leave the decision to you.

Frequently Asked Questions

What dividend has Vesuvius India announced?

A final dividend of ₹1.50 per equity share (face value Re. 1, i.e. 150%) for the financial year ended 31 December 2025, recommended by the board on 26 February 2026 and subject to AGM approval.

What is the dividend yield?

Approximately 0.32% at a market price of about ₹466. This is a low-yield stock; verify the current price against the live NSE/BSE quote as yield changes with price.

What is the record date?

Thursday, 30 April 2026, as disclosed by the company. Only shareholders on the register as of this date were entitled to the dividend.

What is the ex-date?

The ex-date was not stated in the filing. Under India's T+1 settlement the ex-date and record date usually fall on the same day, so it is inferred to be 30 April 2026 — please verify against the exchange ex-date circular.

When will the dividend be paid?

The filing states it will be paid after AGM approval on 7 May 2026. The exact payment date was not disclosed; the statutory outer limit is about 30 days from declaration (roughly early June 2026, in line with prior years).

Who is eligible for the dividend?

Shareholders whose names appeared in the company's register / depository records as of the record date, 30 April 2026. Buyers on or after the ex-date do not qualify.

How is this dividend taxed?

Dividends are taxable in the shareholder's hands at their income-tax slab rate. TDS of 10% applies only if dividends from the company in a year exceed ₹5,000 (₹10,000 from FY2025-26). At ₹1.50/share, most retail holders fall below the TDS threshold.

Is the dividend sustainable?

Yes, comfortably. It is covered ~8.7x by earnings, ~2.4x by recurring free cash flow, and ~19x by cash and bank balances, against an essentially debt-free balance sheet. The real debate is under-distribution, not sustainability.

What is Vesuvius India's dividend history like?

A consistent, growing payer: on a split-adjusted basis, DPS rose from ₹0.70 (FY20) to ₹1.50 (FY25) — about a 16.5% CAGR with no cuts or suspensions. The payout ratio, however, has fallen from ~27% to ~12% as profits grew faster than the dividend.

Why did FY25 profit stay flat despite higher revenue?

Revenue grew 12.6% but costs grew faster — material cost +26%, employee cost +22%, depreciation +35% (new plant) — compressing EBITDA margins ~147 bps. Reported profit was also held up by a one-time land-sale gain; excluding it, core profit fell about 5%.

What was the 10:1 stock split about?

Effective 10 June 2025, each ₹10 face-value share was sub-divided into ten Re. 1 shares. All per-share figures (EPS, DPS) in this report are on the new Re. 1 base, per Ind AS 33, so year-on-year comparisons are like-for-like.

How does Vesuvius compare with refractory peers?

Vesuvius has the lowest yield of the group but by far the best return ratios (ROCE ~21%, ROE ~15%) versus RHI Magnesita India and IFGL Refractories, which yield more but earn far less on capital. It is the highest-quality business in the peer set.

How much dividend does the promoter receive?

The promoter (Vesuvius Group, UK) holds 55.57% and therefore receives about ₹16.9 Cr of the ₹30.45 Cr total payout; the remaining ~₹13.5 Cr goes to public and institutional shareholders.

Does Vesuvius have any debt?

No meaningful debt. Auditors confirmed no loans or borrowings during the year; only small lease liabilities (~₹14 Cr) exist against ~₹582 Cr of cash and bank balances.

What should investors monitor going forward?

The EBITDA-margin recovery as the new plant ramps, quarterly cash conversion and debtor days, deployment of the large cash balance (payout/buyback), core earnings growth off a one-off-inflated FY25 base, and steel-sector demand.