This paper attempts to actualize the trends and implications of the profit appropriation and dividend payoff decisions in the context of Indian Engineering Industry. By analyzing the unit-level data of the engineering units divides across five select sectors, the objective is to provide a spatial-temporal analysis as to how this heavily capital intensive industry has appropriated their profits over the period. The analysis of the financial behaviour of the engineering firms over the pre-liberalization (before reforms) and post-liberalization periods provides an interesting financial perspective. We find extensive support for the theories of Market Signaling, Dividend Irrelevance, the Pecking Order and for Dividend Smoothening in India. Our findings suggest the varying pattern of dividend payout across inter and intra-sectoral cross-section within Engineering Industry in India during the study periods.