Gandhar Oil Refinery (India) Ltd has declared a final dividend of ₹0.50 per share, with the ex-dividend date set for August 1, 2025. The dividend announcement, originally made on May 22, 2025, is in line with its previous interim payout in March 2024, signaling a stable—though modest—dividend policy. The company had not declared any dividend in FY23, but distributed ₹5.70 per share in FY22.

Following the announcement, Gandhar Oil’s stock ended at ₹163.63 on Thursday, marking a 2.16% decline from its previous close. With a market capitalization of ₹1,601.60 crore, the dividend move is likely to impact near-term shareholder value and could influence investor sentiment given the company's financial trajectory.

Dividend History Highlights:
FY25 Final Dividend: ₹0.50 per share

March 2024 Dividend: ₹0.50 per share

FY23: No dividend

FY22: ₹5.70 per share

FY21: No dividend

Financial Performance Overview:
In the quarter ending March 2025, Gandhar Oil reported:

Revenue: ₹961.73 crore, up 2.4% YoY

Net Profit: ₹12.29 crore, up 1.5% YoY

EPS: ₹1.19 vs ₹1.06 in March 2024

However, on a quarter-on-quarter basis, both profit and revenue saw declines:

Revenue dropped 4.3% from ₹1,005.29 crore in Dec 2024

Net profit fell 39.8% from ₹20.42 crore

EPS fell 39.9% from ₹1.98

For the full fiscal year (FY25):

Revenue: ₹3,896.92 crore (down 5.2% YoY)

Net Profit: ₹83.61 crore (down 49.4% YoY)

EPS: ₹8.18 vs ₹16.27 in FY24

Despite the yearly drop in earnings, cash flow from operations improved, with ₹14 crore in FY25 versus a negative ₹69 crore in FY24. As of March 2025, total assets and liabilities stood balanced at ₹1,959 crore, while the debt-to-equity ratio remains low at 0.15, reflecting conservative leverage.

Key Financial Ratios (FY25 vs FY24):
Return on Equity: 6.47% vs 11.98%

Current Ratio: 2.91

Debt-to-Equity Ratio: 0.15

The modest dividend payout and recent earnings slowdown indicate that the company is adopting a cautious capital allocation strategy amid margin pressures. While its low debt levels and strong liquidity offer resilience, declining profitability and muted topline growth may weigh on investor expectations in the short term.