MIDHANI shares tumble 6% despite announcing ₹0.85 interim dividend
Mishra Dhatu Nigam Limited (MIDHANI), a key player in India's aerospace and defence metallurgy sector, saw its shares drop sharply on Friday. The stock fell by around 6%, hitting a fresh 52-week low of ₹313.15. Despite the decline, the company announced an interim dividend for the 2025-26 fiscal year.
The board of MIDHANI approved an interim dividend of ₹0.85 per share, equivalent to 8.5% of the face value. This payout reflects a dividend ratio of roughly 31.6%, based on the company's third-quarter net profit of ₹27 crore and revenue of ₹276 crore. Shareholders on record as of March 19, 2026, will qualify for the dividend, with March 18 set as the ex-dividend date.
The stock's decline came amid a wider sell-off in Indian equities, particularly affecting metal stocks and public sector undertakings (PSUs). MIDHANI's performance has been volatile over the past year, influenced by defence sector trends, government procurement cycles, and geopolitical factors. The Indian government holds a 74% stake in the company, shaping its strategic priorities in line with national industrial policies. While the dividend announcement provided some positive news, broader market pressures weighed on investor sentiment. The company's stock has faced fluctuations due to shifts in defence spending, quarterly earnings, and external economic conditions.
MIDHANI's interim dividend offers a return to shareholders despite the recent stock decline. The payout follows a challenging period for the company, marked by market volatility and sector-wide pressures. Investors will now watch for further developments in defence procurement and government policy to gauge future performance.
