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Samvardhana Motherson shares gain over 4% after Q4 profit rises 20% YoY; announces 1:2 bonus issue


Shares of Samvardhana Motherson rose over 4% to Rs 158.60 on the BSE on Friday after the company reported a 20% year-on-year (YoY) increase in net profit for Q4FY25, and announced a 1:2 bonus issue.

The auto component major posted a net profit of Rs 1,050.5 crore for the March quarter, up from Rs 878.63 crore in the same period last year. Revenue from operations grew 6% YoY to Rs 29,316.83 crore, compared to Rs 27,665.92 crore in Q4FY24.

Alongside its earnings, the company’s board recommended a 1:2 bonus issue, meaning shareholders will receive one bonus share for every two shares held, subject to approval at the upcoming general meeting.

Also read: Bharat Dynamics shares rally 6% as govt plans Rs 40,000 crore defence R&D push

The board also proposed a final dividend of Rs 0.35 per equity share for FY25. The record date for dividend eligibility is set for June 23, and if approved at the AGM, the payment will be made on or before September 26.

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Samvardhana Motherson’s board also approved a plan to raise up to Rs 8,500 crore through the issuance of rated, listed, unsecured, redeemable, non-convertible debentures (NCDs) on a private placement basis.
For the entire financial year, which ended on March 31, 2025, Samvardhana Motherson reported a 40% YoY surge in net profit to Rs 3,803.02 crore. Its revenue from operations meanwhile rose over 15% on-year to Rs 1.14 lakh crore in FY25. EBITDA grew 17% on-year to Rs 10,877 crore.
“Our performance demonstrates the resilience and adaptability of our business. Leveraging our strong engineering and manufacturing expertise, we are well-equipped to meet our customers’ needs, positioning us for long-term sustainable growth. Our booked business value of USD 88+ billion, which also encompasses non-automotive businesses, sets a strong foundation for a bright future. The Board congratulated the Motherson Team for an exceptional performance over the five-year period despite numerous challenges in a volatile world,” said Vivek Chaand Sehgal, Chairman of the company.
Also read: Market surge leads to Rs 50,000 crore worth stake sales by promoters and shareholders

“The Company managed to achieve the highest ever sales outpacing the automotive industry by building several new facilities, integrating record number of acquisitions (23), entering new industries successfully, all while exceeding customer expectations on quality (receiving multiple awards globally); yet retaining focus on free cash flow and bringing the leverage ratio to the lowest level in the five year period,” he added.

Samvardhana Motherson share price target


According to Trendlyne, the average target price for Samvardhana Motherson is Rs 158, indicating a potential upside of nearly 3% from current levels. Of the 23 analysts tracking the stock, the consensus recommendation remains ‘Buy’.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)



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