MRF Q4 FY26 results: Rs 229 dividend, PAT up 43%

Why MRF’s latest dividend update matters

MRF Ltd, among India’s most expensive stocks by share price, announced a fresh dividend payout alongside its March-quarter results on May 7. The board recommended a final dividend of Rs 229 per equity share (face value Rs 10) for the financial year ended March 31, 2026. The proposal is subject to shareholder approval at the company’s upcoming annual general meeting (AGM).

The update drew immediate attention because MRF’s dividend quantum is large in absolute rupees, even though the share price is high. The company also confirmed it had already paid two interim dividends of Rs 3 each during the year. With the final dividend recommendation, the total dividend for FY26 stands at Rs 235 per share.

What the board announced on dividend

As per the stock exchange filing referenced in the reports, MRF’s board recommended a final dividend of Rs 229 per share. The dividend is proposed on equity shares of face value Rs 10 each, and will be paid only after shareholder approval at the ensuing AGM.

MRF also stated it had already declared and paid two interim dividends of Rs 3 per share each during FY26. Adding the final dividend to these interim payouts takes the full-year dividend to Rs 235 per share for the year ended March 31, 2026. The company has not announced the record date for the final dividend in the information provided.

Q4 FY26 performance snapshot

MRF reported a strong quarter ended March 2026, with profit growth outpacing revenue growth. Consolidated net profit rose 42.66% year-on-year to Rs 700.68 crore in Q4 FY26. Revenue from operations increased 13.70% year-on-year to Rs 8,044.22 crore.

Profit before exceptional items and tax climbed 38.93% year-on-year to Rs 915.77 crore in the March quarter. The company also reported exceptional items of Rs 13.96 crore linked to labour code compliance. On the cost side, total expenses rose 11.28% to Rs 7,267.51 crore, compared with Rs 6,531.04 crore in Q4 FY25.

Costs and margins: what changed in the quarter

The quarterly expense breakdown indicates a mixed cost picture. Cost of material consumed stood at Rs 4,994.25 crore, up 5.79% year-on-year. Employee benefit expenses rose 16.98% year-on-year to Rs 550.83 crore, indicating higher staff costs during the period.

Finance cost fell 11.84% year-on-year to Rs 86.33 crore. While the reports do not provide a detailed margin bridge, the combination of faster profit growth than revenue growth suggests operating leverage and cost management helped support the bottom line in Q4 FY26.

Stock reaction after results

MRF shares rose 1.01% to Rs 1,31,685 after the tyre maker reported the March-quarter numbers and recommended the final dividend. Another report also noted the stock was trading around Rs 1.31 lakh and referenced a record high of Rs 1,63,600, with the stock about 20% below that peak.

The move was modest in percentage terms, but it remains notable given the stock’s high absolute price per share. The market reaction followed the combination of profit growth and the large final dividend recommendation.

Full-year FY26 numbers also improved

Separately reported annual figures for the year ended March 31, 2026 showed higher revenue and profit compared with the previous year. On a standalone basis, MRF reported revenue of Rs 30,652.08 crore for FY26 versus Rs 27,665.22 crore in the previous year. Standalone net profit rose to Rs 2,355.40 crore from Rs 1,822.55 crore.

On a consolidated basis, annual revenue was reported at Rs 31,149.01 crore with net profit of Rs 2,426.10 crore. These figures provide context for the board’s ability to sustain a large dividend payout for the year.

Dividend timeline: FY26 and recent history

MRF’s reported dividend track record shows repeated use of small interim payouts and a large final dividend. For FY26, the interim dividends were Rs 3 per share on February 13, 2026 and Rs 3 per share on November 21, 2025. The final dividend recommendation for FY26 is Rs 229 per share.

For the previous fiscal year, shareholders received a final dividend of Rs 229 per share on July 18, 2025, following interim dividends of Rs 3 each paid on February 14, 2025 and November 19, 2024. Going further back, the company paid a final dividend of Rs 194 per share on July 25, 2024.

Key numbers table

Dividend history table (as reported)

Market impact: what investors typically watch next

The immediate market takeaway from MRF’s update was the combination of strong year-on-year profit growth and confirmation of a high final dividend amount. The dividend remains subject to shareholder approval at the AGM, which is the next formal checkpoint for the payout.

Another practical trigger for shareholders will be the record date, which determines eligibility for receiving the dividend. The information provided states the record date has not yet been announced. Until then, investors typically focus on AGM timelines and the company’s disclosures around payout logistics.

Business profile in brief

MRF is engaged in manufacturing rubber products such as tyres, tubes, flaps, and tread rubber, and also trades in rubber and rubber chemicals. The company’s quarterly performance metrics in Q4 FY26 point to higher profitability alongside expanding revenue, supported by controlled growth in key cost lines.

Conclusion

MRF’s board has recommended a final dividend of Rs 229 per share for FY26, taking the full-year dividend to Rs 235 per share including two interim payouts. The company also reported Q4 FY26 consolidated net profit of Rs 700.68 crore on revenue of Rs 8,044.22 crore, with the stock rising 1.01% to Rs 1,31,685 after the announcement. The next milestones for investors are the AGM approval and the company’s record date announcement for the final dividend.