Mukand Ltd Shares up 3% After Q4 Profit Skyrockets Over 5,000% YoY; Company Announces Special ₹3 Dividend

Synopsis: Mukand Ltd reported a sharp jump in profitability during Q4 FY26, supported by a significant rise in other income and improved earnings performance. The company also announced a dividend of Rs. 3 per share, including a special payout to commemorate 100 years of the Bajaj Group. 

Mukand Ltd  is a leading specialty steel and heavy engineering company and a prominent part of the Bajaj Group. The company manufactures alloy steel, stainless steel, heavy machinery, and industrial equipment catering to sectors such as automotive, infrastructure, engineering, and capital goods With decades of manufacturing expertise and integrated steelmaking operations, Mukand continues to strengthen its presence in India’s industrial and engineering ecosystem. 

Mukand Ltd currently has a market capitalization of Rs. 2,061 crore, while the stock trades around Rs. 143 per share, up by 3% compared to previous close of Rs. 138. The stock has touched a 52-week high of Rs. 162 and a low of Rs. 106. 

The company trades at a P/E ratio of 3.38 and offers a dividend yield of 1.41 percent. Mukand reported strong return ratios with ROCE at 23.1 percent and ROE at 48.9 percent, reflecting efficient capital utilization and healthy shareholder returns. 

Mukand Ltd reported revenue from operations of Rs. 1,269 crore in Q4 FY26, compared to Rs. 1,329 crore in Q3 FY26 and Rs. 1,107 crore in Q4 FY25. Revenue declined sequentially by around 5 percent but increased nearly 15 percent on a year-on-year basis. 

The company reported an operating loss of Rs. 17 crore during the quarter, compared to an operating profit of Rs. 72 crore in Q3 FY26 and Rs. 65 crore in Q4 FY25. Operating margins slipped into negative territory at -1 percent due to higher expenses and pressure on operating performance. 

However, Mukand witnessed a major jump in other income, which surged to Rs. 508 crore in Q4 FY26 compared to Rs. 4 crore in the previous quarter. As a result, profit before tax climbed sharply to Rs. 434 crore, compared to Rs. 21 crore in Q3 FY26 and Rs. 24 crore in Q4 FY25. 

At the bottom line level, the company reported a net profit of Rs. 555 crore in Q4 FY26, registering a massive jump from Rs. 10 crore in Q3 FY26 and Rs. 11 crore in Q4 FY25. Net profit surged more than 5,000 percent on a year-on-year basis, driven primarily by exceptional earnings support from higher other income. Earnings per share (EPS) stood at Rs. 38.41 during the quarter compared to Rs. 0.71 in Q3 FY26. 

The Board of Directors recommended a dividend of Rs. 3 per equity share of face value Rs. 10 each for FY26. The payout includes a special dividend of Re.1 per share to celebrate 100 years of the Bajaj Group. 

The total dividend represents a payout of 30 percent for shareholders and highlights the company’s commitment toward rewarding investors despite ongoing volatility in the steel sector. 

India’s steel industry continues to witness healthy demand from infrastructure, construction, automotive, and manufacturing sectors. India’s finished steel production stood at 146.8 million tonnes during FY26 (April–February 2026), while domestic steel demand is expected to grow by 9–10 percent in 2025 according to ICRA. 

The sector is also benefiting from strong policy support and rising investments. Under the Union Budget 2026-27, the government allocated Rs. 443.8 crore to the Ministry of Steel, while continued PLI incentives and infrastructure expansion under PM GatiShakti are expected to support long-term growth. India’s abundant iron ore reserves and low-cost manufacturing ecosystem continue to strengthen the competitiveness of domestic steel manufacturers globally. 

Mukand Ltd delivered an exceptional bottom-line performance in Q4 FY26, supported by a sharp rise in other income and improved profitability. The announcement of a special centenary dividend further added to positive investor sentiment. 

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