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In a rewarding move for long-term shareholders, Vardhman Textiles Ltd has announced a substantial final dividend of 250 percent for the financial year ended March 31, 2025. The company has fixed Friday, September 12, 2025, as the record date to determine eligible members entitled to receive the dividend. This announcement comes ahead of its 52nd Annual General Meeting (AGM), scheduled for September 24, and reflects the company’s strong financial performance and commitment to shareholder value.
Vardhman Textiles, a constituent of the BSE 500 index, is one of India’s leading integrated textile manufacturers, with a diversified portfolio spanning yarns, fabrics, garments, and threads. The dividend declaration has sparked investor interest, with the stock gaining nearly 6 percent intraday following the announcement.
Key Highlights From The Dividend Declaration
- Vardhman Textiles Ltd has declared a final dividend of Rs 5 per equity share
- The dividend represents a 250 percent payout on the face value of Rs 2 per share
- Record date for dividend eligibility is Friday, September 12, 2025
- The dividend, subject to shareholder approval at the AGM, will be paid on October 24, 2025
- The company’s 52nd AGM will be held virtually on Wednesday, September 24, 2025, at 11:15 am
Financial Context And Performance Indicators
The dividend announcement follows a robust financial year for Vardhman Textiles, marked by strong operational metrics and improved profitability. The company has benefited from stable raw material prices, export demand recovery, and efficient cost management across its manufacturing units.
Key financial indicators include:
1. Year-on-year revenue growth driven by higher yarn and fabric volumes
2. Improved EBITDA margins supported by operational efficiencies
3. Healthy cash reserves and low debt-to-equity ratio
4. Strong export order book from Europe and Southeast Asia
The Rs 5 per share dividend reflects the company’s confidence in its liquidity position and future earnings visibility.
Shareholder Entitlement And Payment Timeline
Investors holding shares of Vardhman Textiles as of the record date—September 12—will be eligible to receive the dividend, provided it is approved at the AGM. The dividend will be credited or dispatched on October 24, 2025, in accordance with SEBI’s listing obligations and disclosure requirements.
Shareholders are advised to ensure that their demat accounts and bank details are updated to avoid delays in receiving the dividend. The company has also clarified that the dividend will be subject to applicable tax deductions at source.
Market Reaction And Investor Sentiment
Following the announcement, Vardhman Textiles shares surged 5.92 percent to trade at Rs 434.05 on the BSE, up from the previous close of Rs 409.80. The stock has shown consistent upward momentum over the past quarter, supported by strong institutional buying and favorable sectoral outlook.
Analysts view the dividend as a signal of management’s confidence in sustained earnings and capital discipline. The payout also enhances the stock’s attractiveness for income-focused investors, particularly in a market environment marked by volatility and selective sector rotation.
Sectoral Overview And Competitive Positioning
India’s textile sector has witnessed a gradual recovery post-pandemic, aided by export incentives, domestic demand revival, and increased focus on sustainability. Vardhman Textiles has maintained its leadership position through:
- Investment in automation and green manufacturing practices
- Expansion into value-added segments such as organic cotton and recycled yarns
- Strategic partnerships with global fashion brands and retailers
- Diversified product mix catering to both domestic and international markets
The company’s dividend policy aligns with its long-term strategy of balancing growth investments with shareholder returns.
Dividend Outlook
With a 250 percent final dividend on the table, Vardhman Textiles has reinforced its reputation as a shareholder-friendly company. As the record date approaches, investors are positioning themselves to benefit from the payout while tracking the company’s AGM proceedings for further strategic updates.
Sources: MSN News Report, Exchange Filing via ET Now
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