Rico Auto Industries Limited announced on May 29, 2026, that its Board of Directors has recommended a final dividend of ₹0.55 per equity share of face value ₹1 each for the financial year ended March 2026. The announcement was made following a board meeting held on the same day, with the filing submitted to the NSE at 15:36 IST.

Dividend Details and Year-on-Year Comparison

The declared dividend of ₹0.55 per share marks a 10% increase over the ₹0.50 per share paid in FY2025. This reverses a two-year declining trend that saw the payout fall from ₹0.75 in FY2023 to ₹0.60 in FY2024 and further to ₹0.50 in FY2025. The FY2026 payout represents a modest recovery, though it remains below the FY2023 peak of ₹0.75 per share. The dividend is subject to shareholder approval at the upcoming Annual General Meeting.

Historical Dividend Trend

Rico Auto has maintained an unbroken annual dividend record for at least eight consecutive years. The per-share payouts over this period are as follows:

The data points to a company that has consistently returned cash to shareholders across varying market cycles, including the pandemic year of FY2021 when the payout was at its lowest at ₹0.20 per share.

Market Context and Dividend Yield

Quote and trade data were not available at the time of this filing. Investors should note that the dividend yield on this payout will depend directly on the prevailing market price of RICOAUTO shares. Given the face value of ₹1 per share and a dividend of ₹0.55, the yield percentage can be calculated by dividing ₹0.55 by the current market price and multiplying by 100. At a hypothetical price of ₹55, the yield would stand at approximately 1.0%; at ₹27.50 it would be 2.0%. Investors are advised to verify the current traded price on NSE before computing yield.

Company Background

Rico Auto Industries Limited, listed on the NSE under the symbol RICOAUTO with ISIN INE209B01025, is a manufacturer of precision aluminium and ferrous components primarily serving the automotive sector. The company supplies to original equipment manufacturers across two-wheeler, passenger vehicle, and commercial vehicle segments, making its financial performance closely linked to domestic auto production volumes.

What This Means for Investors

The 10% increase in dividend per share signals that the board views FY2026 cash flows as sufficient to modestly improve shareholder returns after two years of declining payouts. However, the absolute payout of ₹0.55 per share remains low relative to the ₹0.75 distributed in FY2023, indicating that the board is exercising capital discipline. Investors tracking this stock for income should monitor the record date announcement, which has not yet been disclosed, to confirm eligibility for the dividend. The consistency of annual payouts since at least FY2018, without a single year of omission, is a relevant data point for income-oriented investors assessing the reliability of Rico Auto's dividend policy.