E Factor Experiences Dividend 2026 | ₹1.20/Share | Record Date, Yield & Analysis

Market Data

E Factor Experiences Limited (CIN: L92199DL2003PLC118285) is a Noida-headquartered event management company founded in 2000 by CEO Samit Garg. The company provides end-to-end experiential event services including tourism events, corporate functions, technology-based multimedia light & sound installations, hot air balloon safaris, adventure tourism, destination management, and specialized turnkey wedding solutions. Listed on NSE since October 9, 2023, through an IPO that raised ₹25.92 Cr, E Factor operates with approximately 75 employees. For FY2026, the company reported consolidated revenue of ₹191.44 Cr with a net profit of ₹19.67 Cr. The stock has seen significant correction from its all-time high of ₹348 in December 2025, declining 48.5% YTD.

Dividend History Assessment

E Factor Experiences has a brief but consistent dividend track record — three consecutive years of final dividends since listing. The DPS increased 20% from ₹1.00 (FY2024) to ₹1.20 (FY2025), then maintained at ₹1.20 for FY2026. Total dividends paid since listing aggregate to ₹3.40 per share. While the short history limits conclusions, the company demonstrates commitment to shareholder returns early in its listed journey. No special dividends have been declared. Classification: Consistent Payer (Early Stage).

E Factor's decision to maintain the ₹1.20 dividend despite a 2.5% PAT decline and zero operating cash flow in FY2026 raises important questions. The dividend outflow of ₹1.58 Cr is modest — just 8.03% of net profit — so earnings technically cover it. However, the absence of operating cash flow means this dividend is effectively funded through financing activities (₹12 Cr inflow) rather than business operations. INDmoney describes E Factor as "primarily a capital appreciation stock rather than a high-dividend one," and the 0.68% yield confirms this. The 24th AGM approval is pending. Investors should watch whether improved cash conversion materializes before expecting dividend growth.

E Factor operates in India's growing experiential events sector, benefiting from rising disposable incomes and corporate event spending. The 5-year revenue CAGR of 81% reflects strong demand. However, the 48.5% YTD stock decline and negative operating leverage suggest the market is repricing growth expectations. With debtor days at 199 days, cash collection remains a critical bottleneck. The company may need to prioritize working capital efficiency over top-line expansion. Dividend growth beyond ₹1.20 appears unlikely until operating cash flow turns positive. Next earnings on November 5, 2026 will be pivotal — investors should look for OCF improvement and margin recovery as key catalysts.

On May 26, 2026, the Board of Directors of E Factor Experiences Limited recommended a final dividend of ₹1.20 per equity share (12% on face value of ₹10) for the financial year 2025-26. This dividend is subject to approval by shareholders at the company's 24th Annual General Meeting. The company subsequently filed an intimation under SEBI Regulation 42 (LODR) on August 22, 2026, fixing the record date as September 16, 2026 and book closure from September 17 to September 23, 2026. Company Secretary Rahul Chauhan signed the filing. Total dividend outflow is estimated at ₹1.58 Cr based on approximately 1.31 Cr outstanding shares.

E Factor's dividend history spans only three years post-listing. The trajectory shows initial growth — DPS rose 20% from ₹1.00 to ₹1.20 between FY2024 and FY2025 — followed by a plateau at ₹1.20 for FY2026. Total cumulative dividends stand at ₹3.40 per share. Notably, no interim or special dividends have been declared, indicating a conservative approach. The company has never cut dividends, though the sample size is limited. The payout ratio remained consistently low at 8-10%, suggesting the Board prioritizes reinvestment over shareholder distributions. With PAT declining and OCF at zero, maintaining ₹1.20 appears reasonable but not guaranteed if cash flow stress persists. Classification: Consistent Payer — Early Stage, Conservative Payout.

Peer Assessment

Among listed Indian event management companies, E Factor offers the highest dividend yield at 0.68%, though absolute levels remain low across the sector. E Factor's P/E of 11.72 is the lowest, reflecting either undervaluation or market concerns about cash flow quality. Its ROE of 24.4% and ROCE of 24.7% significantly outperform Exhicon (ROE 11.21%, ROCE 14.71%). However, E Factor has the smallest market cap at ₹231 Cr. Mach Conferences is the closest peer with a similar dividend-paying profile. None of these event management companies qualifies as a dividend stock — the sector is growth-oriented with minimal shareholder distributions.

1. Zero Operating Cash Flow: FY2026 OCF was ₹0 Cr despite ₹19.67 Cr PAT. If this persists, the company may need to borrow further or cut dividends.
2. Extreme Debtor Days (199): Nearly 7 months of revenue is locked in receivables. A single large client default could trigger significant write-offs and a working capital crisis.
3. Negative Free Cash Flow (-₹10 Cr): The business consumed cash rather than generating it. Dividend is effectively being funded through financing activities.
4. Rising Debt (₹49 Cr): Borrowings represent 54% of net worth. If cash flow does not improve, the debt burden will escalate further, squeezing margins through interest costs.
5. Margin Compression: Revenue grew 11.6% but PAT declined 2.5%. Operating leverage is negative — costs are rising faster than revenue, a structural concern.
6. Interest Cost Capitalization Risk: Screener.in flags the company may be capitalizing interest costs, which would overstate profits and assets.
7. High Promoter Concentration (69.56%): Low institutional interest (zero FII, minimal MF) limits price discovery and liquidity. The stock is 4.75x as volatile as Nifty.
8. Small Cap Liquidity Risk: Market cap of ₹231 Cr with limited free float creates execution risk during market stress. The stock fell 48.5% YTD.

1. Operating Cash Flow Recovery: Watch for OCF turning positive in upcoming quarters (next results: November 5, 2026). This is the single most important metric to track.
2. Debtor Days Reduction: Improvement from 199 days toward industry-standard 90-120 days would signal better working capital discipline and cash realization.
3. Debt Trajectory: Monitor whether borrowings (currently ₹49 Cr) increase further. Any debt reduction would be a strong positive signal.
4. Net Margin Recovery: Track whether the FY2026 margin compression (10.3% vs 11.8%) reverses or deepens. Identify specific cost line items driving changes.
5. Order Book & Revenue Pipeline: Event management visibility depends on booked events. A growing order pipeline would provide revenue assurance.
6. Institutional Participation: Any entry by mutual funds or foreign investors would validate the investment thesis and improve liquidity.
7. AGM Dividend Approval: Confirm shareholder approval of the ₹1.20 dividend at the 24th AGM and monitor management commentary on future capital allocation.

E Factor Experiences Limited has recommended a final dividend of ₹1.20 per share (12% on ₹10 face value) for FY2026, maintaining parity with the previous year. At the current market price, this translates to a 0.68% dividend yield — well below risk-free rates. The low 8.03% payout ratio and 12.49x earnings coverage suggest the dividend is affordable on an accrual basis. However, the critical concern is zero operating cash flow and negative free cash flow of -₹10 Cr, meaning the dividend is not backed by cash generation. The company's 199-day debtor cycle and rising borrowings (₹49 Cr) point to working capital stress. Positives include strong ROE (24.4%), consistent dividend history, and revenue growth. This is a growth stock with a token dividend, not a dividend stock. Investors should focus on cash flow recovery and margin improvement at the November 5, 2026 earnings announcement.