Dividend Snapshot – Reliable Data Services Limited
Dividend Details
Company: Reliable Data Services Limited
NSE Symbol: RELIABLE
BSE Code: 540851
ISIN: INE375Y01018
Dividend Type: Final Dividend
Dividend Per Share: ₹0.05
Face Value: ₹10
Dividend %: 0.5% (on Face Value)
Financial Year: FY2025-26
Yield & Market Data
CMP (Announcement Date): ₹141.30
Latest CMP: ~₹141.00
Announcement Yield: 0.035%
Current Yield: 0.035%
Payout Ratio: 0.74%
Dividend Outflow: ₹5.15 Lakhs
Shares Outstanding: 1.03 Cr
Face-Value Illusion: The headline 0.5% yield is on ₹10 face value. At market price of ₹141, actual yield is just 0.035% — virtually zero income for investors.
Reliable Data Services Limited – Company Overview
Reliable Data Services Limited is an Indian information technology company providing data management, software development, and IT-enabled services. Listed on both NSE (RELIABLE) and BSE (540851), the company operates primarily in data processing, digitisation, and technology consulting. With FY26 consolidated revenue of ₹185 Cr (up 41% YoY), the company has shown strong top-line momentum. However, operating margins compressed from 13% to 9%, causing profit after tax to decline 35% to ₹7 Cr. The company has an equity base of ₹10.3 Cr (face value ₹10/share) with reserves of ₹61 Cr. Promoter holding stands at 67.79%, down from 71.77% a year earlier. The board has also approved a ₹200 Cr fundraising plan, signalling potential equity dilution ahead.
Reliable Data Services Limited – Financial Analysis
Key Financial Metrics (FY26, Consolidated)
Revenue: ₹185 Cr (+41.2% YoY)
PAT: ₹7 Cr (-35.2% YoY)
EPS: ₹6.67
OPM: 9% (down from 13%)
ROE: 9.8%
ROCE: 12%
Critical Finding: Margin Compression
Revenue surged 41% but operating profit margin fell from 13% to 9%. This means the company grew revenues aggressively — likely through lower-margin contracts or higher employee/subcontracting costs — while profitability deteriorated. PAT declined 35% despite top-line expansion. This is a classic case of unprofitable growth where revenue flatters but cash earnings disappoint. Investors should monitor whether margins recover in FY27 or if this signals a structural shift in the business mix.
Reliable Data Services Limited – Expert Commentary
At ₹0.05 per share, this dividend is purely symbolic. The company earns ₹6.67 per share but distributes only ₹0.05 — a payout ratio of just 0.74%. For a shareholder holding 1,000 shares worth approximately ₹1.41 lakh, the gross dividend received would be just ₹50. This is not an income stock. The real question is whether management’s decision to retain 99.26% of earnings translates into meaningful reinvestment or sits idle in working capital. With 185-day debtor cycles and a ₹200 Cr fundraising plan approved, the retained earnings appear consumed by operations rather than generating compounding returns for shareholders.
Reliable Data Services Limited – Future Outlook
Revenue growth momentum remains strong at 41% YoY, and the IT services sector continues to benefit from India’s digital transformation push. However, the company faces three structural headwinds: (1) margin compression — OPM fell from 13% to 9%, suggesting pricing pressure or cost inflation; (2) working capital stress — debtor days at 185 indicate delayed client payments, which can strain cash flows despite accounting profits; (3) potential dilution — the board’s approved ₹200 Cr fundraising could significantly dilute existing shareholders on an equity base of just ₹71 Cr. Dividend growth is unlikely until profitability improves and the fundraising path becomes clearer.
Reliable Data Services Limited – Dividend Announcement Summary
On September 5, 2026, Reliable Data Services Limited intimated BSE that the Board of Directors recommended a final dividend of ₹0.05 per equity share (0.5% on face value of ₹10) for the financial year ended March 31, 2026. The dividend was subject to approval at the Annual General Meeting held on September 29, 2026. The company fixed September 18, 2026 as the record date for determining shareholder eligibility. Payment is due within 30 days of AGM approval, i.e., by October 29, 2026. The filing was signed by Ms. Anisha Kumari, Company Secretary & Compliance Officer.
Reliable Data Services Limited – Key Dates Timeline
| Event | Date | Status |
|---|---|---|
| Announcement Date | September 5, 2026 | ✓ Passed |
| Ex-Dividend Date | September 17, 2026 (Inferred, T+1) | ✓ Passed |
| Record Date | September 18, 2026 | ✓ Passed |
| AGM Date | September 29, 2026 | ✓ Passed |
| Payment Deadline | October 29, 2026 | ● Upcoming |
Note: Ex-date is inferred based on India’s T+1 settlement cycle (record date minus one trading day). Only shareholders who held shares before September 17, 2026 were eligible for this dividend.
Reliable Data Services Limited – Dividend Yield Analysis
Yield Breakdown
Dividend Per Share: ₹0.05
Face Value Yield: 0.5% (on ₹10 FV)
Announcement Date Yield: 0.035% (on ₹141.30 CMP)
Current Yield: 0.035% (on ~₹141 CMP)
Yield Reality Check
This is effectively a zero-yield stock. A savings bank account at 2.5% delivers 71 times more income per rupee invested. Even a 1-year FD at 7% would return 200 times more. The 0.5% headline figure is misleading — it is calculated on ₹10 face value, not the ₹141 market price investors actually pay. No income-oriented investor should consider this stock for dividend income. The dividend exists as a formality, not as a shareholder return mechanism.
Reliable Data Services Limited – Dividend History
| Financial Year | Dividend Type | DPS (₹) | Dividend % |
|---|---|---|---|
| FY2025-26 | Final | 0.05 | 0.5% |
| FY2024-25 | Final | 0.05 | 0.5% |
| FY2023-24 | Final | 0.05 | 0.5% |
| FY2022-23 | Final | 0.05 | 0.5% |
| FY2021-22 | Final | 0.05 | 0.5% |
| FY2020-21 | Final | 0.05 | 0.5% |
| FY2018-19 | Final | 0.05 | 0.5% |
Reliable Data Services has maintained a consistent but static dividend of ₹0.05 per share across seven recorded years. There has been zero dividend growth — the payout has remained frozen at the absolute minimum level. No interim dividends, no special dividends, and no dividend increase despite revenue growing from ₹31 Cr (FY19) to ₹185 Cr (FY26). Classification: Consistent Payer (Zero Growth).
Reliable Data Services Limited – Financial Performance Analysis
Revenue Trend (Consolidated)
FY2024: ₹79 Cr
FY2025: ₹131 Cr (+65.8%)
FY2026: ₹185 Cr (+41.2%)
2-Year CAGR: 53.0%
Profitability Trend
FY2024 PAT: ₹5.28 Cr (OPM 13%)
FY2025 PAT: ₹10.81 Cr (OPM 13%)
FY2026 PAT: ₹7 Cr (OPM 9%)
⚠ Operating leverage worked against the company in FY26. Revenue rose 41% but OPM dropped 4 percentage points, causing PAT to fall 35%.
Reliable Data Services Limited – Cash Flow Analysis
Cash Flow Summary (FY26)
Operating Cash Flow: ₹11 Cr
Free Cash Flow: ₹12 Cr
PAT: ₹7 Cr
OCF/PAT Ratio: 1.57x ✓
Cash Quality Assessment
Operating cash flow at ₹11 Cr exceeds reported PAT of ₹7 Cr, which is a positive signal — earnings are backed by actual cash collections. However, the 185-day debtor cycle remains alarming. Despite positive OCF, a large portion of revenue sits locked in receivables. If even a fraction of these receivables turn bad, the cash position could deteriorate rapidly. Free cash flow is positive at ₹12 Cr, suggesting minimal capex needs — but this also raises the question of whether the company is investing adequately for future growth.
Reliable Data Services Limited – Balance Sheet Strength
Capital Structure
Equity Capital: ₹10.3 Cr
Reserves: ₹61 Cr
Total Equity: ₹71.3 Cr
Borrowings: ₹46 Cr
Cash & Investments: ₹5 Cr
Net Debt: ₹41 Cr
Debt-to-Equity: 0.65x
Balance Sheet Concerns
For an IT services company, borrowings of ₹46 Cr against equity of ₹71 Cr is relatively high. IT companies typically operate with minimal debt given their asset-light models. The net debt of ₹41 Cr combined with the approved ₹200 Cr fundraising suggests the company needs significant external capital — either for expansion or to address working capital gaps caused by the 185-day receivable cycle. Cash reserves of just ₹5 Cr provide limited buffer against operational disruptions.
Reliable Data Services Limited – Dividend Sustainability Scorecard
| Test | Metric | Value | Result |
|---|---|---|---|
| Earnings Coverage | Payout Ratio | 0.74% | ✓ PASS |
| OCF Coverage | OCF / Dividend | 213.6x | ✓ PASS |
| FCF Coverage | FCF / Dividend | 233.0x | ✓ PASS |
| Cash Coverage | Cash / Dividend | 97.1x | ✓ PASS |
Overall Rating: Sustainable (4/4 PASS) — However, this rating is trivially achieved because the dividend outflow is just ₹5.15 Lakhs. Any company generating even minimal revenue can sustain a ₹0.05/share dividend. The scorecard passes by default, not by merit. Sustainability is not a meaningful differentiator for a token dividend.
Reliable Data Services Limited – Peer Comparison
| Company | Div Yield | Payout % | ROE % | ROCE % |
|---|---|---|---|---|
| Reliable Data Services | 0.035% | 0.74% | 9.8% | 12% |
| Infosys | ~2.5% | ~75% | ~32% | ~42% |
| TCS | ~1.5% | ~70% | ~48% | ~62% |
| IT Sector Average | ~1.5-2.5% | ~50-75% | ~25-35% | ~30-45% |
Reliable Data Services’ 0.035% yield is among the lowest in the Indian IT sector. Large-cap IT peers return 50-75% of profits as dividends with yields of 1.5-2.5%. Even small-cap IT companies typically offer higher payout ratios. The company’s ROE of 9.8% and ROCE of 12% also trail sector benchmarks significantly, reflecting lower capital efficiency.
Reliable Data Services Limited – Promoter Impact Analysis
Shareholding Pattern
Promoter Holding: 67.79%
FII Holding: 0.33%
Public Holding: 31.87%
⚠ Promoter holding declined from 71.77% to 67.79% (Q3 FY25)
Promoter Dividend Income
Promoter Share of Dividend: ₹0.0349 Cr (₹3,494)
Total Dividend Outflow: ₹0.0515 Cr (₹5,150)
The promoter group receives approximately ₹3,494 as total dividend income — an insignificant amount. This confirms the dividend is a regulatory/governance formality rather than a meaningful return channel. The 3.98 percentage point drop in promoter holding is a more significant development worth monitoring than the dividend itself.
Reliable Data Services Limited – Dividend Taxation Analysis
Indian Dividend Tax Rules
Dividends are taxable in the hands of shareholders at their applicable income tax slab rate. Companies deduct TDS at 10% if total dividend exceeds ₹5,000 in a financial year. Since 1,000 shares of Reliable Data Services would yield only ₹50 as gross dividend, TDS will not apply for most retail investors as the threshold is unlikely to be crossed. You would need over 100,000 shares (worth ~₹1.41 Cr) to trigger TDS.
Worked Example (1,000 Shares, 30% Slab)
Shares Held: 1,000
DPS: ₹0.05
Gross Dividend: ₹50.00
Tax @ 30%: ₹15.00
Net Dividend: ₹35.00
Investment Value: ₹1,41,000
Effective Post-Tax Yield: 0.025%
Note: Actual tax obligation depends on individual circumstances. Consult a tax professional.
Reliable Data Services Limited – Key Risks
Margin Compression: OPM fell from 13% to 9% in FY26 despite 41% revenue growth. If margins continue declining, earnings could erode further even with top-line expansion.
Extreme Debtor Days (185 Days): Nearly half a year of revenue is locked in receivables. This exposes the company to bad debt risk and creates cash flow dependency on timely collections.
₹200 Cr Equity Dilution Risk: The board’s approved fundraising is 2.8x the current equity base of ₹71 Cr. If executed via equity issuance, existing shareholders could face significant dilution.
Promoter Stake Reduction: Promoter holding dropped 3.98 percentage points from 71.77% to 67.79%. Persistent selling by promoters can signal reduced confidence in near-term prospects.
Client Concentration & Revenue Quality: High debtor days often indicate dependence on a few large clients with extended payment terms. Loss of a key client could materially impact revenue.
Leverage for an IT Company: Borrowings of ₹46 Cr are unusual for an IT services firm. Interest costs eat into already-compressed margins, reducing net profitability.
Reliable Data Services Limited – What To Monitor
Q1 FY27 Margins: Watch whether OPM recovers above 12% or continues declining. This is the single most important metric for earnings trajectory.
Debtor Days Trend: If receivables come down from 185 days toward 120-150 days, it signals improving collection efficiency and reduced bad debt risk.
Fundraising Execution: Monitor the ₹200 Cr fundraising — whether it happens via equity (dilutive), debt (leverage risk), or convertibles. Terms and pricing matter significantly.
Promoter Holding Changes: Quarterly shareholding filings will reveal if promoter stake stabilises or continues declining below 67%.
New Contract Wins & Client Diversification: Revenue quality matters more than revenue quantity. Track whether new contracts carry better margins than existing ones.
Dividend Payment Confirmation: Verify that payment is credited by October 29, 2026 deadline.
Reliable Data Services Limited Dividend – Conclusion
Reliable Data Services Limited’s final dividend of ₹0.05 per share for FY2025-26 is a token payout that delivers virtually zero income to shareholders. The current yield of 0.035% is among the lowest in the Indian equity market. While the dividend is trivially sustainable (4/4 on the scorecard), this reflects the negligible outflow of just ₹5.15 Lakhs rather than financial strength. The company’s real story lies elsewhere: 41% revenue growth against 35% profit decline reveals margin compression, while 185-day debtor cycles and a proposed ₹200 Cr fundraising raise questions about capital efficiency and potential dilution. This is a growth-stage IT company where the investment thesis rests on revenue scalability and margin recovery — not dividend income. Investors should evaluate Reliable Data Services on its business trajectory, not its dividend.
Frequently Asked Questions – Reliable Data Services Limited Dividend
What dividend has Reliable Data Services Limited announced for FY2025-26?
What is the dividend yield of Reliable Data Services Limited?
What was the record date for Reliable Data Services dividend?
What was the ex-dividend date for Reliable Data Services?
When will Reliable Data Services Limited pay the dividend?
Who is eligible for Reliable Data Services Limited dividend?
How is dividend from Reliable Data Services taxed in India?
Is Reliable Data Services Limited dividend sustainable?
What is Reliable Data Services Limited’s dividend history?
What should investors monitor about Reliable Data Services Limited?
Why is Reliable Data Services’ profit declining despite revenue growth?
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Disclaimer – Reliable Data Services Limited Dividend Analysis
This article is published by ShareBazaar Online for informational and educational purposes only. It does not constitute investment advice, a recommendation to buy, sell, or hold any securities, or an offer of any financial product. ShareBazaar Online is not a SEBI-registered investment advisor, research analyst, or portfolio manager. All information is sourced from publicly available filings, exchange data, and third-party sources believed to be reliable, but accuracy is not guaranteed. Financial data, ratios, and computations are based on available information and may contain inadvertent errors. Market prices, yields, and financial metrics change continuously. Past dividend performance does not guarantee future payouts. Investors should conduct their own due diligence and consult qualified financial advisors before making investment decisions. ShareBazaar Online, its authors, and affiliates disclaim all liability for any losses or damages arising from the use of this information. Keyword search volume data, where included, is sourced from third-party tools and marked “Not Independently Verified (NIV)” where applicable.