Nestle India Declares Rupee 2 per Share Special Dividend For FY26

“This is to inform you that the Board of Directors of the Company, at its meeting held today, has declared a Special Dividend 2026 of Rs. 2 (Rupees two only) per equity share of face value of Re. 1 - each on the entire issued, subscribed and paid-up equity share capital of the Company comprising 1,928,314,320 equity shares, to be paid out of the retained earnings of the Company.”

What Happened and Why It Matters

Nestlé India Limited announced that its Board of Directors has approved a special dividend of 2 per equity share of face value 1 each for FY26. The dividend will be paid from the company's retained earnings, amounting to approximately 741.01 crore, which were reclassified under a Scheme of Arrangement approved by the National Company Law Tribunal (NCLT) in October 2023.

The company stated that using these retained earnings allows it to reward shareholders without affecting its regular dividend distributions. The special dividend will be paid on the company's entire issued, subscribed, and paid-up equity share capital comprising 1,928,314,320 equity shares.

Business Impact and Strategic Relevance

Shareholder Returns

The special dividend provides an additional cash reward to shareholders over and above the final dividend proposed for FY26, reflecting the company's strong retained earnings position and commitment to delivering shareholder value.

Capital Management

By distributing a portion of its retained earnings, Nestlé India is optimizing its capital structure while returning surplus cash to shareholders in an efficient manner.

Financial Position

The company clarified that the dividend will be paid from reclassified retained earnings available under the approved Scheme of Arrangement, ensuring that the distribution complies with all applicable legal and regulatory requirements.

What to Watch Next

The special dividend is scheduled to be paid on or after July 30, 2026, along with the final dividend for FY26, subject to shareholder approval at the company's Annual General Meeting (AGM).

Nestlé India has fixed July 10, 2026, as the record date to determine the eligibility of shareholders who will receive the special dividend.

About Nestlé India

Nestlé India Limited is one of India's leading food and beverage companies. Its portfolio includes well-known brands such as MAGGI, NESCAFÉ, KITKAT, MILKMAID, CERELAC, and NESTLÉ EVERYDAY. The company continues to maintain a strong financial position while creating long-term value for its shareholders.