Swaraj Engines share price: M&M-owned engine supplier’s stock jumps 10% on robust Q4 results; ₹104.5 dividend declared

Swaraj Engines share price: Shares of Mahindra & Mahindra (M&M)-owned Swaraj Engines Ltd. surged as much as 10 per cent on Wednesday, April 16, after the dieSEL engine manufacturer announced its January-March quarter results for fiscal 2024-25 (Q4FY25). The small-cap reported robust fourth-quarter results with a strong performance across fundamentals.

Swaraj Engine's net profit in the March quarter rose 29 per cent to ₹45.4 crore, compared to ₹35.2 crore in the corresponding period last year. The M&M unit's revenue from operations in the fourth quarter increased 29.4 per cent to ₹454.2 crore compared to ₹351 crore in the year-ago period.

Swaraj Engines Share Price Trend

On Wednesday, shares of Swaraj Engines opened at ₹4,077.90 and jumped 10 per cent to hit a 52-week high of ₹4,478.60 before settling 3.90 per cent higher at ₹4,191.10 apiece on the BSE. The company commands a market cap of ₹5,091.12 crore. Shares of the engine supplier rallied 11 per cent in the last five days, 30 per cent in one month, and 41 per cent year-to-date (YTD).

Swaraj Engines Q4 Results

Swaraj Engine's earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 29 per cent to ₹62 crore compared to ₹48 crore in the year-ago period. EBITDA margin expanded to 13.6 per cent from 13.7 per cent last year.

The company capitalized on sustained strong demand for engines. It also recorded its highest-ever engine sales volume and profit for the March quarter of FY25, with 45,594 units sold compared to 35,344 units sold during the same period last year. Swaraj Engines was established in 1985 in Mohali, Punjab, and supplies engines to the Swaraj Division of M&M.

With sustained growth in all four quarters of FY25, Swaraj Engines continued its year-on-year engine sales and profit growth over the previous year. The engine sales volume for FY25 was 1,68,820 units, compared to 1,38,761 units sold during the last financial year, a growth of 21.7 per cent.

The net operating revenue for FY25 stood at Rs. 1,681.89 crore (last year, ₹1,419.24 crore). The full-year FY25 net profit rose 20.4 per cent to hit ₹165.98 crore compared to Rs. 137.87 crore, the highest ever for any financial year.

Considering annual growth and to secure the future demand for engines, the Board approved the engine capacity expansion plan in its meeting held today, increasing the capacity from 195,000 units to 240,000 units per annum. The investment allows the company to upgrade its manufacturing technology to produce engines according to future technology needs.

Swaraj Engines dividend, AGM

Swaraj Engines board recommended a dividend of ₹104.50 for FY25. The dividend's record date is fixed on June 27, 2025. The company's annual general meeting (AGM) will be held on July 15, 2025.

While the total projected expenditure for this expansion will be financed through internal generations/ surplus funds available with the company, the board has also recommended a higher equity dividend of 1,045 per cent (Rs. 104.50 per share vs. ₹95 for the previous year) for the financial year ended March 31, 2025," said Swaraj Engines in its stock exchange filing.

"The Register of members and share transfer books of the company will remain closed from Saturday, June 28, 2025, to Friday, July 4, 2025 (both days inclusive) to determine the Members eligible to receive the dividend, if declared by the shareholders at the ensuing AGM scheduled to be held on Tuesday, July 15, 2025," added Swaraj Engines.

“If declared at the AGM, the dividend will be paid/dispatched by the company in permitted modes after Tuesday, July 15, 2025, within the stipulated timelines.” The company announced the record date for the dividend in a separate exchange filing.

“…We hereby withdraw the information related to book closure dates i.e. from Saturday, June 28, 2025 to Friday, July 4, 2025 (both days inclusive) and hereby inform that Friday, June 27, 2025, is fixed as the record date for purposes of determining the members eligible to receive the dividend, if declared by the shareholders at the ensuing AGM scheduled to be held on Tuesday, July 15, 2025,” said Swaraj Engines in its stock exchange filing.

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