Kamdhenu Dividend 2026: ₹0.40 Final, Yield & Record Date

• Dividend per share: ₹0.40 (Final)
• Dividend %: 40% on ₹1 face value
• Market yield: 1.03% (CMP ₹39.00, 28 Sep 2026)
• Growth vs FY25: +60% (₹0.25 to ₹0.40)

• Total outflow: ₹11.28 crore
• Payout ratio: 14.39% of FY26 PAT
• Record date: 18 September 2026
• AGM approval: 25 September 2026

Business Model

Kamdhenu Limited was incorporated in 1994 as Kamdhenu Ispat and renamed in 2016. It sells TMT bars, structural steel and colour-coated sheets under the Kamdhenu brand. Most of this steel is made by franchise units that pay Kamdhenu a royalty on every tonne. That makes the company asset-light: it earns brand income without owning most of the factories.

FY26 Scale

Royalty income rose 25% to ₹174.5 crore, or 22.9% of revenue (up from 18.6%). Franchise volumes grew 10% to 37.9 lakh MT, and brand sales turnover was about ₹23,000 crore (per company results commentary). The company reports a single business segment, steel.

What Stands Out

A 60% dividend increase looks generous. But Kamdhenu Limited still paid out only 14.39% of profit, while cash and investments reached ₹304.29 crore. That is about 27.7% of its ₹1,099 crore market value. The cash is available, but management has chosen to invest it rather than distribute it.

The Caution Flag

PAT rose 28.73% in FY26, but operating cash flow fell 4.21%. Cash converted from profit dropped from 113% to 84%. Earnings quality is still reasonable, but it moved in the wrong direction during a record profit year.

Management Direction

On the FY26 earnings call, management said it aims for roughly 10% volume growth a year and 10–15% annual increases in royalty per tonne. The CFO said there is no plan to invest further in the group paint business, and that surplus cash will go to the steel business and shareholder rewards (per earnings-call coverage).

Early FY27 Signal

Q1 FY27 revenue rose 9% to ₹213.3 crore, and PAT rose 34% to ₹28.7 crore. However, about ₹17 crore of that quarter's roughly ₹36 crore PBT came from other income. Operating margin was about 10%, well below Q4 FY26's roughly 17%.

Shareholders approved the dividend at the 32nd AGM on 25 September 2026, held by video conference. The filing says payment will be made within 30 days of the AGM.

Outflow: ₹0.40 × 28.19 crore shares = ₹11.28 crore. This is a single final dividend; no interim dividend was declared for FY26.

Face Value vs Market Price

"40%" is calculated on the ₹1 face value, a price nobody pays today. At the current price of ₹39.00, ₹0.40 ÷ ₹39.00 = 1.03%. Using the 11 September price of ₹39.09, the yield was 1.02%. The announcement-date closing price could not be independently verified.

Yield Reality Check

The yield rose from about 0.64% to 1.03% even though the stock gained roughly 48% over the past year. The higher yield comes from a larger dividend, not a falling share price. That is the healthier of the two ways a yield can rise.

Consistent Payer

Kamdhenu Limited has paid a dividend for 11 straight years. On a split-adjusted basis, DPS grew from ₹0.07 to ₹0.40, a 19.04% CAGR over ten years. From FY21 to FY26 the CAGR was 37.97%, and the dividend has risen every year since FY20.

One Cut on Record

In FY20, DPS was halved to ₹0.05 after EPS fell to ₹0.07, which pushed the payout ratio to 71%. Apart from that year, the payout ratio has stayed between 10% and 23%. The dividend has grown with earnings, not ahead of them.

Why Profit Outran Sales

Revenue rose just 2.13%, but EBITDA jumped 33.69% and the EBITDA margin widened from 10.09% to 13.21%. Raw-material cost fell 4.19% and other expenses fell 3.11%. Meanwhile royalty income, which carries almost no cost, grew 25%.

Q4 Told a Different Story

Q4 FY26 PAT grew only 1.99% to ₹17.43 crore. The quarter absorbed an ₹11.38 crore fair-value loss on investments, which pushed other income to negative ₹8.24 crore. Employee costs rose 9.71% for the year, much faster than sales.

Profit Up, Cash Down

Operating cash flow was ₹65.97 crore against PAT of ₹78.35 crore, a conversion of 84% versus 113% in FY25. Trade receivables rose 17.73% while revenue rose only 2.13%, and trade payables were cut by and the company paid suppliers ₹8.48 crore more quickly than before.#8377;8.48 crore, which also drained cash.

What Funds the Dividend

Free cash flow (OCF minus ₹11.51 crore of capex) was ₹54.46 crore, which covers the dividend 4.83 times. The dividend is paid from current earnings, not borrowings or asset sales. The FY26 ‘dividend paid’ of ₹7.04 crore matches ₹0.25 × 28.19 crore shares.

Debt-Free, Cash-Rich

As of 31 March 2026, Kamdhenu Limited had no bank borrowings, only ₹9.42 crore of lease liabilities. Cash plus current investments were ₹258.12 crore, or ₹304.29 crore including non-current investments. Net worth rose to ₹396.37 crore. Our calculated ROE is 21.99% and ROCE is 29.39%.

Capital Allocation

In FY26 the company spent ₹53.33 crore buying equity shares, including about ₹20 crore in the group paint company, which reported a 97% profit fall. There was no debt to repay. A 30% payout ratio would have meant about ₹0.83 per share, still well within free cash flow. Management chose to retain the cash.

Who Receives What

Promoters held 49.03% in June 2026, so they receive about ₹5.53 crore of the ₹11.28 crore payout. Minority shareholders receive ₹5.75 crore. FIIs hold just 2.06% and DIIs 0.03%, so nearly all the non-promoter share goes to about 48,824 retail and other holders.

Ownership Trend

Promoter holding fell from 58.74% to 49.03% over three years, mostly in September 2024. Warrant conversions also raised the share count from 27.74 crore to 28.19 crore. Minority holders now receive slightly more of the total payout than promoters.

Worked Example (Standard)

1,000 shares × ₹10 = ₹10,000 gross. Tax at 30% plus 4% cess (31.2%) = ₹3,120. Net income = ₹6,880. After tax, you keep 68.8% of any gross yield.

Kamdhenu Limited Case

1,000 shares × ₹0.40 = ₹400, which is below the TDS threshold. Tax at 31.2% = ₹124.80, leaving a net of ₹275.20. The post-tax yield is 0.71%.

Positives

The dividend grew 60% and is covered 6.95 times by earnings and 4.83 times by free cash flow. The company has no debt and ₹304 crore in treasury. Its yield is more than double each steel peer's, and it has paid a dividend for 11 straight years.

Negatives

The real yield is 1.03%, not "40%". Operating cash flow fell while profit rose, receivables are growing faster than sales, profit is exposed to swings in the investment portfolio, and the payout ratio is only 14% despite the large cash pile.