Vallabh Vidyanagar / Mumbai | 10-Oct-2025, 14:00 IST — Filed via NSE/BSE Disclosure
Industrial gear and transmission equipment maker Elecon Engineering Company Ltd (NSE: ELECON / BSE: 505700) has declared an interim dividend for the current financial year (FY26). The company has fixed 16 October 2025 as the record date for eligibility and announced that the dividend will be disbursed on or after 3 November 2025.
The announcement was made in a regulatory filing today in compliance with SEBI’s Listing Obligations and Disclosure Requirements (LODR).
Dividend Details
- Type: Interim dividend (FY26)
- Record Date: 16 October 2025
- Payment Date: On or after 3 November 2025
- Ex-Dividend Date: Likely 15 October 2025 (one business day before record date)
- Dividend per Share: To be disclosed (past trends suggest between ₹0.50–₹1.50 per share)
This means shareholders holding Elecon shares as of 16 October will be eligible to receive the interim dividend in their demat/bank accounts starting early November.
Historical Dividend Track
Elecon has been a consistent dividend payer, reflecting its stable cash flows from the engineering and industrial machinery sector:
- FY25 (Final Dividend): ₹1.50 per share (ex-date 13 June 2025).
- FY25 (Interim Dividend): ₹0.50 per share (record date 28 October 2024).
- FY24 (Final Dividend): ₹1.00 per share.
Over the past three years, Elecon has maintained a steady payout ratio, balancing shareholder returns with reinvestment in capacity expansion and R&D.
Why It Matters
- Shareholder Returns
Interim dividends reward investors mid-year and highlight management’s intent to share profits periodically. - Financial Strength
A mid-year dividend indicates Elecon’s robust profitability and healthy balance sheet, especially given its strong order inflows. - Investor Sentiment
Dividend announcements often lift confidence, attracting long-term investors seeking yield stability in cyclical industries like capital goods. - Corporate Governance
Timely payouts and clear disclosures reinforce Elecon’s governance and transparency standards.
Company Snapshot
- Founded: 1951, headquartered in Vallabh Vidyanagar, Gujarat.
- Business: Elecon manufactures industrial gears, mining equipment, and transmission products. It is one of India’s largest industrial gear producers with global clientele.
- Segments: Power, steel, cement, ports, mining, and defence.
- Promoters: The Patel family continues to hold significant stake and operational involvement.
Financial Performance (FY25)
- Revenue: ~₹2,200 crore
- EBITDA Margin: ~19%
- PAT: ~₹270 crore
- Order Book: Healthy pipeline in infrastructure and industrial sectors, driven by India’s capex cycle.
Market Context
The industrial machinery and gear sector has benefited from:
- Rising infrastructure and capex push in India.
- Demand in steel, cement, and ports, which are expanding capacity.
- Orders from defence and renewables, creating new opportunities.
Dividend-paying companies in this space are often preferred by conservative investors seeking both growth and income stability.
Ticker Snapshot — Elecon Engineering (NSE: ELECON)
Outlook
The interim dividend declaration reaffirms Elecon’s commitment to shareholder value creation while maintaining capital allocation discipline.
- Short Term: Investors may see positive sentiment around the ex-dividend date.
- Medium Term: Dividend stability signals operational strength and confidence in sustained order execution.
- Long Term: With India’s industrial capex and infrastructure boom, Elecon is expected to continue rewarding shareholders through both growth and consistent payouts.
For dividend-seeking investors, Elecon remains a reliable industrial play balancing cyclical exposure with steady financial discipline.
