Majestic Auto Stock Jumps 4% After Strong FY26 Results and 600% Dividend Announcement

Synopsis:-Backed by exceptional gains from the sale of a subsidiary and industrial land, Majestic Auto has reported consolidated net profit of Rs. 92.78 crore for FY26  a sharp reversal from Rs. 8.79 crore in the prior year  while declaring a 600 percent total dividend for the year, even as core rental revenues on a consolidated basis fell 45 percent after the subsidiary exit dropped out of the P&L.

A Delhi-based commercial real estate and facility management company came into focus on May 23, 2026, after its board approved audited FY26 results and recommended a final dividend of Rs. 25 per equity share, taking the full-year payout to Rs. 60 per share. 

With a market capitalisation of Rs. 348.32 crore, the shares of Majestic Auto Limited were trading at Rs. 335 per share, up 3.92 percent from its previous closing price of Rs. 322.35 apiece.

FY26 Results: One-Time Gains Define the Year

On a consolidated basis, net profit attributable to equity shareholders stood at Rs. 91.65 crore for FY26, against Rs. 6.81 crore in FY25  a more than tenfold increase. That number, however, rests on an exceptional item of Rs. 93.46 crore, primarily representing the gain on the sale of the company’s entire stake in Emirates Technologies Private Limited (ETPL). Strip the exceptional out, and the consolidated operating picture is considerably thinner.

Consolidated revenues from operations fell 45 percent year-on-year, from Rs. 64.31 crore in FY25 to Rs. 35.39 crore in FY26. The decline is partly structural  ETPL remained a subsidiary only until September 4, 2025, contributing revenues for the first five months of FY26 before the disposal, after which its numbers exited the consolidated P&L entirely. The residual revenues reflect the company’s core leasing and facility management operations, which are themselves contracting; consolidated revenue from operations has declined from Rs. 83 crore in FY24 to Rs. 35.39 crore in FY26, a trajectory that predates the ETPL exit.

On a standalone basis, revenues from operations fell more modestly  from Rs. 24.44 crore to Rs. 20.29 crore, a 17 percent decline. Standalone PAT for FY26 came in at Rs. 114.18 crore, against a loss of Rs. 3.36 crore in FY25, driven by the Rs. 122.80 crore exceptional gain on the ETPL disposal and a Rs. 33.02 crore gain on the Greater Noida land sale recognised through other income. Standalone operating cash flow, however, turned negative at Rs. 3.67 crore versus a positive Rs. 70.87 crore in FY25, a signal that the underlying business generates limited free cash in the absence of asset transactions. The balance sheet has improved: borrowings on a standalone basis are negligible as of March 31, 2026, completing the company’s effective debt elimination.

Two transactions shaped FY26’s financial profile. In September 2025, the company sold its entire 1.60 crore equity share holding in ETPL at Rs. 122.50 per share, realising total proceeds of Rs. 196 crore. The deal, originally approved by shareholders at the FY23 AGM, resulted in a standalone exceptional gain of Rs. 122.80 crore and removed ETPL from the consolidated group effective September 4, 2025.

Separately, the company executed a sale deed on March 30, 2026, for industrial plots at B-6, B-7, and B-9, Ecotech I Extension, Greater Noida  a plot it had agreed to sell to Cyrrus Manufacturing LLP during FY 2022-23 at a total consideration of Rs. 143.52 crore, inclusive of transfer charges, GST, stamp duty, and registration fees. The buyer had deposited Rs. 115.25 crore as advance by December 2025, with the balance received prior to deed execution. The transaction generated a standalone gain of Rs. 33.02 crore recognised through other income. Together, these two exits reduced consolidated total assets from Rs. 922.57 crore in FY25 to Rs. 695.72 crore in FY26.

Dividend: 600% Total Payout for FY26

The board recommended a final dividend of Rs. 25 per share for FY26, subject to shareholder approval. Combined with an interim dividend of Rs. 35 per share already disbursed during the year, the aggregate FY26 dividend stands at Rs. 60 per share, a 600 percent total payout (face value of Rs.10 per share). 

Business Overview

Majestic Auto Limited, incorporated in 1973, has transitioned from automobile and electrical component manufacturing to commercial real estate leasing and facility management over the past decade.

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