Nestle India Ltd. declared a special dividend of Rs 2 per equity share after its board approved the payout on Friday, taking the company's total dividend for FY26 to Rs 7 per share, including the final dividend of Rs 5 per share recommended earlier.
The special dividend will be paid from July 30 alongside the final dividend, subject to shareholder approval at the company's 67th annual general meeting. Shareholders whose names appear in the register of members or the register of beneficial owners as of July 10 will be eligible for both payouts.
The announcement follows the company's June 19 disclosure that the board would consider a special dividend at its meeting on July 3. On the same day, Nestle India had fixed July 10 as the record date for the final dividend and said the same date would apply to the special dividend if approved.
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Nestle India said it will fund the special dividend from retained earnings. As of March 31, 2026, the company had retained earnings of Rs 51,070.7 million. Of that, Rs 8,374.3 million had been reclassified from the general reserve under a scheme of arrangement approved by the National Company Law Tribunal that became effective in October 2023. After capitalising Rs 964.2 million through a 1:1 bonus share issue in August 2025, the remaining Rs 7,410.1 million from the reclassified amount will be used for the special dividend.
"The Board of Directors of the Company, at its meeting held today, has declared a Special Dividend 2026 of Rs. 2/- per equity share... to be paid out of the retained earnings of the Company," Nestle India said in an exchange filing.
The company is also scheduled to report its unaudited standalone and consolidated financial results for the quarter ended June 30 on July 22, according to an earlier exchange filing.
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