KPR Mill Announces 250% Interim Dividend for FY25-26
KPR Mill Limited, a leading vertically integrated textile manufacturer in India, has announced a generous interim dividend for its shareholders. The company declared a dividend of ₹2.50 per equity share, which represents a substantial 250% of the face value of ₹1 per share for the financial year 2025–26. This announcement was made alongside the release of the company's December quarter financial performance.
Record Date Set for Dividend Eligibility
The company has officially designated Friday, February 13, as the record date to determine which shareholders are eligible to receive this dividend payment. According to data from Trendlyne, over the past 12 months, KPR Mill has declared an equity dividend totaling ₹2.50 per share. At the current share price of ₹978.85, this translates to a dividend yield of 0.26% for investors.
Q3 FY26 Financial Performance Analysis
For the quarter ending December, KPR Mill reported a consolidated net profit of ₹208.6 crore. This figure marks an increase from the ₹202.25 crore profit recorded in the same period last year. However, it represents a slight decline compared to the ₹218.03 crore profit posted in the preceding September quarter.
The dip in profit was primarily driven by a reduction in revenue, which appears to have been impacted by elevated US tariffs. The company's consolidated revenue from operations stood at ₹1,406.45 crore for Q3, down from ₹1,467.42 crore in the year-ago period. In the September quarter, revenue was notably higher at ₹1,568.86 crore.
On the operational front, KPR Mill reported an EBITDA of ₹295 crore, a decrease from ₹302 crore in the previous quarter. Despite this, the company maintained a steady margin of 20%, indicating resilient operational efficiency amidst challenging market conditions.
Share Price Surges on US Tariff Reduction
KPR Mill's share price has experienced a significant rebound in recent trading sessions, climbing 12.6% so far in February. This rally was triggered by positive developments in international trade, specifically the reduction of US tariffs on Indian goods, which has improved earnings visibility for textile companies.
India and the United States recently issued a joint statement in which both nations agreed to lower tariffs on each other's products. US President Donald Trump signed an executive order to revoke the additional 25% tariff previously imposed on Indian goods, a measure initially linked to India's purchases of Russian oil. This action effectively reduces the tariff on Indian imports from 50% to 18%.
The revised tariff structure provides India with a competitive edge in the global market. Other major Asian economies, including China—which holds the largest export share to the US—are now subject to higher tariffs of up to 37% imposed by Washington.
Positive Implications for the Textile Sector
For the textile industry, this tariff reduction removes a significant overhang that had been weighing on sector performance. Analysts had previously warned that sustained high tariffs could prompt global buyers to shift orders to competing countries such as Bangladesh and Vietnam.
The lower US tariffs represent another major boost for the Indian textile sector, following the recent finalization of a landmark free trade agreement between India and the European Union in January. These developments collectively enhance the export competitiveness and growth prospects for companies like KPR Mill.
Disclaimer: Investors are advised to consult with certified financial experts before making any investment decisions.
