KRBL Dividend 2026: ₹4.50 Final Dividend, Record Date 18 September and What the 450% Headline Hides
KRBL Limited (NSE: KRBL, BSE: 530813, ISIN: INE001B01026), the maker of India Gate basmati rice, recommended a final dividend of ₹4.50 per share for FY26 at its board meeting on 14 May 2026. The headline says 450%. On the share price, the yield is about 1.13%. The record date was 18 September 2026, and the company said payment would be made within 30 days of the 24 September AGM, so by 23 October 2026. This analysis of the KRBL dividend covers the figures behind that payout: cash flow, a net cash balance sheet, a qualified audit opinion and one shareholding detail most coverage misses.
KRBL Limited Company Overview
Business
KRBL Limited runs an integrated basmati business covering seed development, contract farming, paddy procurement, milling, packaging and branding. It owns India Gate, and calls itself the world's largest rice miller and basmati exporter. The group also runs a small Energy segment (₹234.47 crore of FY26 segment revenue) alongside its core Agri segment.
Revenue Mix (FY26, Agri)
Of the Agri segment's ₹6,087.90 crore, India contributed ₹4,532.81 crore (74.5%), up 10.6%. The rest of the world contributed ₹1,555.09 crore (25.5%), up 5.6%. In Q4, exports fell 32.8% year on year while domestic revenue rose 22.0%.
KRBL Limited Financial Analysis at a Glance
| Metric | FY26 | FY25 | Change |
|---|---|---|---|
| Revenue from operations | 6,097.86 | 5,593.81 | +9.0% |
| EBITDA (excl. other income) | 902.11 | 674.37 | +33.8% |
| EBITDA margin | 14.79% | 12.06% | +273 bps |
| Profit after tax | 648.04 | 476.05 | +36.1% |
| EPS (₹) | 28.31 | 20.80 | +36.1% |
| Operating cash flow | 932.53 | 960.75 | −2.9% |
Source: KRBL audited consolidated results, 14 May 2026. EBITDA computed as PBT + finance cost + depreciation − other income.
Profit grew four times faster than revenue, but operating cash flow slipped slightly because FY25 had benefited from a large ₹565.86 crore inventory release. FY26 cash conversion is still healthy at 1.44x PAT.
KRBL Limited Dividend History Table (FY16–FY26)
| Financial Year | Dividend (₹) | Type | Record Date | Payout % |
|---|---|---|---|---|
| FY26 | 4.50 | Final | 18-09-2026 | 15.9% |
| FY25 | 3.50 | Final | 17-09-2025 | 17% |
| FY24 | 4.00 | Final | 06-09-2024 | 15% |
| FY23 | 1.00 | Final | 25-08-2023 | 3% |
| FY22 | 3.50 | Final | 09-09-2022 | 18% |
| FY21 | 3.50 | Final | 17-09-2021 | 15% |
| FY20 | 2.80 | Interim | 07-03-2020 | 12% |
| FY19 | 2.50 | Final | 29-08-2019 | 12% |
| FY18 | 2.30 | Final | 07-08-2018 | 12% |
| FY17 | 2.10 | Final | 11-09-2017 | 12% |
| FY16 | 1.90 | Interim | 18-03-2016 | 15% |
Sources: FY26 from company filing; earlier dates from TipRanks; payout % from Screener.in (FY26 computed). The FY24 and FY25 amounts reconcile exactly with the "dividend paid" lines in KRBL's cash flow statements (₹91.56 crore and ₹80.11 crore).
Expert Commentary on the KRBL Limited Dividend
What Stands Out
The dividend rose 28.6% while profit rose 36.1%, so the payout ratio slipped to 15.9%. KRBL kept its habit of paying roughly one-sixth of profits. The payout is small next to the ₹864.63 crore of free cash flow and ₹852.10 crore of net cash.
What Deserves Scrutiny
The auditors issued a qualified opinion for the sixth consecutive year (continuing since 31 March 2021) over the Enforcement Directorate's PMLA case. Separately, ₹406.94 crore went into investment property in FY26, which is nearly 4x the dividend outflow.
KRBL Limited Future Outlook
Early FY27 figures were strong. Screener.in data show Q1 FY27 (June 2026) consolidated PAT of ₹261 crore on sales of ₹1,496 crore, with an operating margin of 21%. Part of that quarter's jump came from ₹64 crore of other income, against ₹8 crore in Q4 FY26, so the quarter is not a clean run-rate. Management has pointed to domestic branded growth and a recovery in exports. Against that, exports to the Middle East were disrupted in Q4, when export revenue fell 32.8%, and the US has threatened tariffs on Indian rice. If FY27 profits hold near FY26 levels, the dividend capacity is there. Whether the board uses it depends on land-bank spending and legal outcomes.
Dividend Snapshot – KRBL Limited
Dividend per share: ₹4.50 (450% of ₹1 face value)
Dividend type: Final Dividend, FY26
Total outflow: ₹103.00 crore
Shares outstanding: 22.89 crore
Yield at ₹398.65 (25 Sep 2026): 1.13%
Payout ratio (consolidated): 15.9%
Dividend cover (EPS/DPS): 6.29x
Promoter share of payout: ₹61.98 crore
Integrity check: the per-share amount multiplied by 22.89 crore shares gives ₹103.005 crore, matching the ₹10,300 lakh disclosed by KRBL Limited. The share count agrees across equity capital, PAT÷EPS and market cap÷price.
KRBL Limited Dividend Announcement Summary
The board met on 14 May 2026 between 13:30 and 18:20 IST, so the announcement came after market hours. Along with approving audited FY26 results, it recommended a final dividend of ₹4.50 per equity share of ₹1, aggregating ₹10,300 lakh (₹103 crore). The dividend needed shareholder approval and was placed before the 33rd AGM on 24 September 2026. The company said payment would be made within 30 days of the AGM. At the same meeting, the board appointed Mr. Shubham Kandhway as Company Secretary and re-appointed S S Kothari Mehta & Co. LLP as internal auditors for FY27. The filing contains no management commentary on dividend policy.
KRBL Limited Dividend Record Date, Ex-Date and Key Dates Timeline
| Event | Date | Status / Source |
|---|---|---|
| Board recommendation | 14-05-2026 | Company filing |
| Letter to shareholders / AGM notice | 07-09-2026 | BSE announcement |
| Ex-dividend date | 18-09-2026 | Same as record date under T+1; per StockAnalysis and Investing.com |
| Record date | 18-09-2026 | BSE letter to shareholders |
| 33rd AGM | 24-09-2026 | AGM outcome filed with BSE |
| Payment (on or before) | 23-10-2026 | Within 30 days of AGM |
Under India's T+1 settlement, a buyer had to purchase KRBL shares before 18 September 2026, meaning by 17 September, to appear in the register on the record date.
KRBL Limited Dividend Yield: 450% vs 1.13%
The Face-Value Illusion
"450%" is ₹4.50 measured against the ₹1 face value. No investor buys at ₹1. At the ₹398.65 close on 25 September 2026 (INDmoney), the real yield is 1.13%, about 1/398th of the headline.
Yield at Different Prices
At ₹351.25 (29 May 2026 close, Business Standard), the yield was 1.28%. At ₹391 (28 September intraday, Screener) it is 1.15%. After 30% tax, it drops to 0.79%. The 14 May closing price was not independently verified.
Yield reality check: KRBL's yield is modest because its payout ratio is low (15.9%), not because the stock has fallen. The yield did not rise because of weak business performance or a one-off special dividend.
KRBL Limited Dividend History Analysis
Growth Trend
The dividend per share grew from ₹1.90 (FY16) to ₹4.50 (FY26), a 9.0% ten-year CAGR. Over five years (from ₹3.50 in FY21) the CAGR is only 5.15%. FY26 is the highest payout in this 11-year record.
The FY23 Break
In FY23, the year of record profit at ₹701 crore, the dividend was cut to ₹1.00, a 3% payout. There were no suspensions and no special dividends in the period. Classification: Consistent Payer, with one sharp cut.
KRBL Limited Financial Performance: Dividend vs Profit Growth
Operating Leverage Worked
Revenue grew 9.0%, EBITDA 33.8% and PAT 36.1%. The main driver was gross margin, which rose from 24.66% to 27.50% as basmati input costs eased. Finance cost fell 43% to ₹8.29 crore. Other income was only 8.1% of PBT, so FY26 profit was operating-led.
Cost Pressure and Q4
Employee costs rose 23.4% to ₹215.36 crore, well ahead of revenue. In Q4 FY26, PAT grew just 0.76% and the EBITDA margin eased to 15.02% from 15.51%, as exports fell 32.8%. The strong full-year number hides a flat final quarter.
KRBL Limited Cash Flow Analysis
Profit Converted to Cash
Operating cash flow was ₹932.53 crore, or 1.44x PAT. Inventory released ₹171.19 crore of cash. Receivables fell 1.1% while revenue rose 9%, so there was no stretching of customer credit. Free cash flow after capex of ₹67.90 crore was ₹864.63 crore.
Where the Cash Went
Borrowings were cut by ₹246.54 crore. ₹406.94 crore went into investment property, consistent with the Panipat land KRBL won at a ₹402.86 crore e-auction (Business Standard). Even after that, FCF of ₹457.69 crore covers the dividend 4.44x. Funded from: current earnings, with no reliance on borrowing.
KRBL Limited Balance Sheet Strength
Net Cash Nearly Doubled
Cash, bank balances and current investments total ₹982.13 crore against borrowings of ₹130.03 crore. Net cash is ₹852.10 crore, up from ₹436.55 crore. Debt-to-equity is 0.02x. The company reports nil outstanding borrowing under SEBI's large-corporate definition.
Inventory-Heavy by Design
Inventory of ₹3,713.66 crore makes up 56.3% of total assets, because basmati is aged before sale. Equity attributable to owners is ₹5,806.49 crore. ROE was 11.73%, modest for a branded FMCG-type business.
KRBL Limited Dividend Sustainability
| Test | Result | Verdict |
|---|---|---|
| Earnings cover (EPS/DPS) | 6.29x | Pass |
| OCF cover | 9.05x | Pass |
| FCF cover (after land purchase) | 8.39x (4.44x) | Pass |
| Cash & investments cover | 9.54x | Pass |
Verdict: Sustainable. KRBL passes all four tests, and debt fell while the dividend rose. The main caveats are legal rather than financial. If the arbitral award against KRBL is upheld, or the ED case produces an adverse outcome, a payment of an amount not yet ascertainable could compete with future dividends.
KRBL Limited Dividend vs Basmati Peers
| Company | Yield | FY26 Payout | ROE | ROCE | Borrowings (₹ cr) |
|---|---|---|---|---|---|
| KRBL Limited | 1.13% | 15.9% | 11.7% | 15.2% | 130 (net cash 852) |
| LT Foods | 0.71% | 17% | 14.7% | 17.6% | 1,610 |
| Chamanlal Setia Exports | 1.02% | 13% | 14.4% | 18.2% | 83 |
| GRM Overseas | 0.00% | 0% | 14.2% | 14.0% | 368 |
KRBL has the highest yield and the strongest cash position in the group, but the lowest ROE. Its large cash pile and slow-moving inventory dilute returns. LT Foods pays a similar share of profit while carrying ₹1,610 crore of debt.
KRBL Limited Promoter Impact Analysis
Who Receives the ₹103 Crore
Based on June 2026 holdings: promoters (60.17%) receive ₹61.98 crore, public shareholders (25.58%) ₹26.35 crore, FIIs (7.29%) ₹7.51 crore, the "Government" category (6.26%) ₹6.45 crore and DIIs ₹0.72 crore. Promoter holding has been unchanged at 60.17% since March 2024.
The 6.26% Nobody Explains
KRBL's filing says the ED attached 1,43,33,221 shares held by the Balsharaf Group. That equals 6.26% of equity, exactly the "Government" holding. The match strongly suggests these are the ED-attached shares, so roughly ₹6.45 crore of this dividend accrues to them. This is our inference; the filing does not state the classification.
KRBL Limited Dividend Taxation
Rules for Tax Year 2026-27
Dividends are taxed at your slab rate. From 1 April 2026, TDS falls under Section 393(1) of the Income-tax Act, 2025 (formerly Section 194): 10% if a company's dividends to you exceed ₹10,000 in the year, or 20% without PAN. The Finance Act 2026 removed the interest deduction against dividend income.
Worked Example (1,000 shares, ₹10/share, 30% slab)
Gross dividend: ₹10,000. Tax at 30%: ₹3,000. Net: ₹7,000. Effective yield at ₹398.65: 2.51% gross, 1.76% net. With 4% cess, net is ₹6,880.
Actual KRBL case: 1,000 shares receive ₹4,500. That is below the ₹10,000 threshold, so no TDS is deducted, but the amount is still taxable. At 30%, the net is ₹3,150, a post-tax yield of 0.79%.
Key Risks to the KRBL Limited Dividend
- Qualified audit: The ED's PMLA case, which alleges USD 24.62 million of AgustaWestland-linked proceeds, is unresolved. Auditors could not assess its impact, and management was "unable to estimate" it.
- Arbitral award: On 27 February 2026, a tribunal ordered KRBL to pay SAR 30,990,241 plus USD 2,151,399 (written "21,51,399" in Indian notation) with interest. KRBL is challenging it under Section 34.
- Export disruption: Q4 exports fell 32.8% amid the West Asia conflict, and US tariff threats persist.
- Inventory risk: ₹3,713.66 crore of stock is exposed to swings in paddy prices.
- Cost creep: Employee costs rose 23.4% against 9% revenue growth.
- Attached land: ₹15.32 crore of Dhuri property remains under ED attachment.
What To Monitor for the KRBL Limited Dividend
- Q2 FY27 results: whether margins stay near 21% after the Q1 boost from other income.
- Export revenue: whether Rest-of-World sales recover from the Q4 low of ₹279.26 crore.
- Section 34 challenge: any court ruling on the SAR/USD arbitral award, and any provision the company books.
- ED / PMLA hearings: any change in the audit qualification, which has run six years.
- Panipat land: whether the ₹406.94 crore investment is developed, used for warehousing or monetised.
- Kharif 2026 paddy prices: these drive working capital, gross margin and next year's dividend capacity.
KRBL Limited Dividend 2026: Conclusion
Positives
This is the highest dividend in the 11-year record, covered 6.29x by earnings and 8.39x by free cash flow. Net cash of ₹852 crore, debt cut by ₹247 crore, and profit growth led by operations rather than other income.
Negatives
The real yield is just 1.13% (0.79% post-tax at 30%). The payout ratio is a low 15.9%, ROE is below peers, Q4 was flat, and the audit qualification and arbitral award remain unresolved.
Frequently Asked Questions About KRBL Limited Dividend
What dividend has KRBL Limited announced for FY26?
What is the KRBL dividend yield?
What was the KRBL dividend record date?
What was the KRBL ex-dividend date?
When will the KRBL dividend be paid?
Who was eligible for the KRBL final dividend?
How is the KRBL dividend taxed?
Is the KRBL dividend sustainable?
What is KRBL's dividend history?
Why does KRBL pay out only about 16% of profit?
How much dividend do KRBL promoters receive?
Why is KRBL's audit report qualified?
How does the KRBL dividend compare with LT Foods?
What should investors monitor after this KRBL dividend?
KRBL Limited Dividend Article Disclaimer
This article is for educational and informational purposes only. It is not investment advice or a recommendation to buy, sell or hold any security. ShareBazaar Online is not a SEBI-registered investment adviser or research analyst. Figures are drawn from KRBL Limited's audited results dated 14 May 2026, exchange filings and third-party sources cited in the text (Screener.in, INDmoney, Business Standard, TipRanks, StockAnalysis, Investing.com). Market prices change constantly. Tax information is general and may not apply to your situation. Please verify dates with official NSE/BSE circulars and consult a qualified financial or tax adviser before acting.