Sundram Fasteners Interim Dividend 2026 — ₹4.05, Record Date 6 Nov, Yield & History

The Board of Sundram Fasteners Limited (NSE: SUNDRMFAST, BSE: 500403) approved a first interim dividend of ₹4.05 per share on a face value of ₹1 for FY2026-27 at its meeting on 28 October 2026. That headline works out to a 405% dividend on face value — but on the market price of about ₹1,073, the real yield of this Sundram Fasteners dividend is just 0.38%. The record date is 6 November 2026 and payment is due on 23 November 2026.

Sundram Fasteners Limited is a flagship engineering company of the TVS Group, incorporated in 1962 and headquartered in Chennai. It manufactures high-precision critical components — fasteners, powertrain parts, cold-extruded and forged components, water pumps, sintered products and radiator caps — primarily for the automotive sector, with growing exposure to infrastructure, wind energy and aviation. A long-standing exporter and Deming Prize winner, it serves global original-equipment manufacturers alongside domestic auto majors. Classified under auto ancillaries, Sundram Fasteners is held about 46.94% by promoters (per the September 2026 shareholding pattern). The company has paid dividends consistently for decades, which frames the context for this latest Sundram Fasteners dividend announcement.

On a consolidated basis, Sundram Fasteners posted FY2026 (year ended March 2026) revenue of about ₹6,289 crore and net profit of roughly ₹593 crore, with an operating margin near 16%. Momentum has accelerated into FY2027: Q2 (September 2026) revenue reached about ₹1,984 crore with net profit near ₹173 crore and EPS of ₹8.19. Trailing-twelve-month revenue is approximately ₹7,065 crore, up around 17%, and PAT near ₹633 crore, up around 16%. Return ratios are solid — ROCE ~17.6% and ROE ~14.9%. (Financials sourced from Screener.in consolidated data.)

The eye-catching 405% figure is a face-value artifact, not a payout surge. Because the share trades near ₹1,073 against a ₹1 face value, the real cash return of this Sundram Fasteners interim dividend is about 0.38%. This is a growth-oriented compounder, not a high-yield income stock. What stands out is consistency: the dividend per share has climbed from ₹4.50 in FY2017 to ₹8.00 in FY2026, backed by rising profits rather than reserve depletion. The payout ratio sits around a disciplined 28%, leaving most earnings for reinvestment. For retail investors, the signal is steady capital-return intent, not a windfall.

Sundram Fasteners enters the second half of FY2027 with visible momentum — half-year EPS of about ₹16.20 already exceeds the pace of recent years, and trailing revenue and profit are both growing in the 16-17% range. Diversification into powertrain-agnostic components, wind-energy fasteners, exports and non-auto segments is designed to reduce dependence on the combustion-engine cycle. If earnings keep compounding and the payout ratio holds near 28%, the per-share Sundram Fasteners dividend can keep rising even while the headline yield stays modest. The company has not disclosed any specific future dividend guidance, so investors should treat FY2027 totals as open until further interim or final declarations are made.

Per the company’s disclosure to NSE and BSE under SEBI (LODR) Regulations 2015, the Board of Sundram Fasteners Limited, at its meeting on Wednesday, 28 October 2026 (5:00 p.m. to 6:05 p.m. IST), approved an interim dividend of ₹4.05 per equity share of ₹1 each for the financial year ending 31 March 2027. The record date to determine eligible shareholders is fixed as Friday, 6 November 2026, and the interim dividend will be paid on Monday, 23 November 2026. Being an interim dividend, it is declared by the Board and does not require separate shareholder approval at the AGM. No book-closure was applicable.

To receive this Sundram Fasteners interim dividend, shares must be held on the record date, 6 November 2026. Under India’s T+1 settlement cycle, the ex-dividend date and record date typically coincide, so a purchase on or after 6 November 2026 would not carry the dividend entitlement. Investors should confirm the final ex-date against the official NSE/BSE corporate-action circular.

This is the core reality check. The dividend yield is simply dividend per share divided by market price. At a market price near ₹1,073, the ₹4.05 interim equals a yield of only 0.38%. Add the earlier payouts over the last twelve months (about ₹7.95 in total) and the trailing dividend yield is still just ~0.74% — broadly matching the 0.75% reported on data platforms. The lesson for retail investors: the 405% label refers to face value, not your actual return. A Sundram Fasteners dividend is modest in yield terms because the stock trades at a premium valuation (P/E ~35), not because the business is weak.

Sundram Fasteners qualifies as a consistent dividend payer. Across the last decade the company has paid dividends every year with no cuts or suspensions, and the per-share amount has broadly trended upward — from ₹4.50 (FY2017) to ₹8.00 (FY2026). FY2023 stands out at ₹8.63, flattered partly by a special dividend. The dividend is typically split across two interim payouts a year, so the FY2027 total will depend on further declarations beyond this first ₹4.05 interim. The pattern reflects a mature, cash-generative business returning a steady slice of profits while retaining the bulk for growth — the hallmark of a disciplined compounder rather than a yield play.

Operating leverage is working in the company’s favour. Consolidated revenue rose from about ₹5,955 crore (FY2025) to ₹6,289 crore (FY2026), and net profit from ₹542 crore to ₹593 crore, with margins holding steady near 16%. The acceleration is in the current year: trailing revenue of ~₹7,065 crore is up roughly 17% and PAT of ~₹633 crore up about 16%, as quarterly EPS climbed to ₹8.19 in Q2 FY2027. Over five years, sales have compounded around 12% and profit about 11%. Profit growth is tracking revenue rather than lagging it — there is no margin-compression red flag in the recent numbers.

Cash is the truth test for any dividend. In FY2026, operating cash flow of about ₹837 crore comfortably exceeded net profit of ₹593 crore (cash conversion ~101% of operating profit), and free cash flow was around ₹467 crore. Against an estimated full-year dividend outflow of ~₹168 crore, FY2026 FCF covered the dividend 2.8x and operating cash flow 5.0x. One watch-point: the cash conversion cycle has stretched to roughly 173 days (debtor days ~89, inventory days ~175), and FY2025 operating cash flow had dipped to ₹423 crore before the FY2026 rebound. The dividend is clearly funded from current cash generation, not borrowings or asset sales.

The balance sheet gives ample headroom for this Sundram Fasteners dividend. As of March 2026, consolidated net worth stood near ₹4,275 crore (reserves ~₹4,254 crore), rising to about ₹4,552 crore by September 2026, with a book value of roughly ₹217 per share. Borrowings were a modest ~₹625 crore in March 2026, moving to ~₹857 crore by September 2026 (partly working-capital and capex driven), keeping the debt-to-equity ratio low at around 0.19. With ROCE near 17.6%, the company earns well above its cost of capital. The ~₹85 crore interim outflow is a small fraction of annual cash generation and reserves.

On all four tests — earnings coverage, operating-cash coverage, free-cash coverage and leverage — the dividend passes comfortably. Verdict: Sustainable. The low ~28% payout leaves a wide buffer even in a weaker year.

With promoters holding about 46.94% (September 2026), roughly ₹40 crore of the estimated ₹85 crore interim outflow flows to the promoter group, while the remaining ~₹45 crore goes to public and institutional shareholders — domestic institutions (~22.6%), foreign investors (~11.0%) and retail/public (~19.4%). Because every shareholder receives the same ₹4.05 per share, the distribution is proportionate and does not favour any class. For a promoter group that has steadily reinvested in the business, the modest payout ratio signals balance between rewarding owners and funding growth. There is no sign of an unusually large distribution designed primarily to benefit promoters.

In India, dividends are taxed in the hands of the shareholder at their applicable income-tax slab rate. Under Section 194, a company deducts 10% TDS only if total dividend paid to a resident shareholder exceeds ₹10,000 in a financial year (the threshold was raised from ₹5,000 effective FY2025-26). Non-residents are covered under Section 195.

Worked example — investor holding 1,000 shares

• Gross dividend: 1,000 × ₹4.05 = ₹4,050
• TDS: Nil on this payout alone (below the ₹10,000 annual threshold)
• Tax at 30% slab (self-assessment): ₹1,215
• Net in hand after tax: ₹2,835
• Post-tax effective yield (on ₹1,073 price): ~0.26%

Illustrative only. This is not tax advice; consult a qualified tax professional for your specific situation.

• Low absolute yield: at ~0.38% for this interim and ~0.74% trailing, the dividend offers little income cushion; returns depend mainly on share-price appreciation.
• Auto-cycle dependence: a large share of revenue is tied to automotive demand, which is cyclical and sensitive to interest rates and economic slowdowns.
• EV transition risk: some combustion-engine powertrain components face structural change as electrification advances, requiring continuous product re-engineering.
• Working-capital stretch: the cash conversion cycle has widened to ~173 days, which can pressure operating cash flow if it worsens.
• Input-cost and export exposure: steel/alloy price swings and currency movements on exports can compress margins.
• Valuation risk: a P/E near 35 leaves limited room for earnings disappointment.

• Full-year FY2027 dividend: whether a second interim or final dividend follows this ₹4.05, and how the total compares with FY2026’s ₹8.00.
• Operating cash flow trend: whether the FY2026 rebound to ~₹837 crore holds, or reverts toward the weaker FY2025 level.
• Working-capital days: movement in debtor and inventory days, which drive cash conversion.
• Margin trajectory: whether the ~16% operating margin is sustained amid input-cost and mix changes.
• Non-auto and export mix: progress in wind-energy, aviation, infrastructure and export revenue that diversifies the auto-cycle risk.
• Debt and capex: the recent rise in borrowings versus capital-expenditure plans and return ratios.

The Sundram Fasteners interim dividend of ₹4.05 per share is best understood as a steady, well-covered capital return from a quality compounder — not a high-yield income source. The 405% headline is a face-value optical effect; the real yield is about 0.38% for this payout and roughly 0.74% on a trailing basis. On the positive side, the dividend is strongly covered by earnings (3.5x) and cash flow, debt is low, earnings are growing, and the payout history is consistent and rising. On the cautious side, the yield is small, the business is auto-cyclical, valuations are rich, and working capital has stretched. Eligible shareholders must hold on the 6 November 2026 record date to receive payment on 23 November 2026. Weigh the positives, risks and monitoring points and decide based on your own objectives.

This article is for informational and educational purposes only and does not constitute investment, legal or tax advice, or any recommendation to buy, sell or hold securities. ShareBazaar Online is not a SEBI-registered investment adviser. Dividend details (amount, record date, ex-date, payment date) are based on the company’s official disclosures to NSE and BSE; financial figures are sourced from Screener.in and other public data providers and may be subject to revision. Market prices and yields change continuously. Figures marked as estimates are computed from publicly available data. Investors should verify all details with official exchange filings and consult a qualified financial or tax professional before making any investment decision. ShareBazaar Online accepts no liability for actions taken based on this content.