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Swaraj Engines Q4 Results are out, and the numbers tell a compelling story of strong financial recovery and strategic dividend payout. This quarterly performance marks a pivotal moment for the company, driven by solid demand recovery and efficiency in operations. Here’s an in-depth breakdown of what the results mean for investors and how the company positions itself within the Indian auto ancillary industry.
Key Financial Highlights
- Net Profit: ₹45 crore in Q4 FY25 vs ₹35 crore in Q4 FY24 — up 29% YoY
- Revenue: ₹454 crore vs ₹351 crore YoY — up 29% YoY
- EBITDA: ₹62 crore vs ₹48 crore YoY — up 29% YoY
- EBITDA Margins: 13.6% in Q4 FY25 vs 13.7% in Q4 FY24
- Dividend: Board recommends a dividend of ₹105/share for FY25
Swaraj Engines Q4 Results Revenue Analysis
Swaraj Engines’ revenue grew by 29% YoY to ₹454 crore in Q4 FY25. This reflects:
- Strong rural demand recovery
- Better execution from OEM partners, primarily Mahindra & Mahindra
- Better realization per unit due to input price pass-through
Profit Trends
The company reported a net profit of ₹45 crore, a 29% increase over the same quarter last year. Factors aiding profitability:
- Higher operating leverage from revenue growth
- Consistent control over fixed and variable costs
- Better working capital management
Quarterly Profit Growth
| Quarter | Net Profit (₹ Cr) |
|---|---|
| Q4 FY24 | 35 |
| Q4 FY25 | 45 |
EBITDA Performance
Swaraj Engines posted an EBITDA of ₹62 crore in Q4 FY25 — a rise of 29% YoY. EBITDA margins were steady at 13.6% despite inflationary pressure on raw materials. Margin trend remains stable due to cost discipline and increased capacity utilization.
Dividend Payout
The company has declared a final dividend of ₹105 per share, maintaining its history of high payouts. This implies a dividend yield of approximately 3-4% based on current stock price.
Management Commentary
The board remains confident in continued rural growth and expects:
- Stable tractor demand through FY26
- Positive monsoon impact on agriculture mechanization
SWOT Analysis of Swaraj Engines
Strengths:
- Mahindra’s OEM dependency secures recurring volumes
- Clean balance sheet with low debt
Weaknesses:
- Single-client dependency (M&M)
Opportunities:
- Electrification of agriculture machinery
- Expansion into newer markets via exports
Threats:
- Cyclical rural demand trends
- Rising input prices (steel, aluminum)
Industry Comparison
Compared to other listed tractor/engine peers:
| Company | Q4 Revenue Growth | Q4 Profit Growth | Dividend per Share |
| Swaraj Engines | +29% | +29% | ₹105 |
| Greaves Cotton | +12% | +7% | ₹1.5 |
| Escorts Kubota | +11% | +9% | ₹7.0 |
Technical Overview
- Stock Performance (1-Year): +42%
- PE Ratio: 15.8x (below industry average)
- Dividend Yield: ~3.5%
- Support Level: ₹3,000
- Resistance Level: ₹3,350
Forecast & Outlook
Near-Term (1–2 Quarters):
- Stable earnings expected
- High dividend makes it attractive for income investors
Long-Term (1–2 Years):
- Expansion potential with increasing agri mechanization
- M&M’s continued investment in the tractor segment is a big positive
Key Risks to Watch
- Weak monsoon could dampen tractor demand
- Steel price inflation affecting margins
- Over-dependence on M&M
Investor Takeaway
Swaraj Engines Q4 Results reaffirm the company’s operational resilience. With consistent earnings growth and high dividend payout, it presents a compelling case for:
- Long-term investors seeking income and safety
- Value investors looking for low-debt, high-yield stocks
More Insights: Visit Swaraj Engines Limited – BSE India
Disclaimer: The projections of potential returns are based on current market conditions and company performance. Actual results may vary due to various factors, including market dynamics, economic conditions, and changes in the competitive landscape. Investors should conduct their own research and consult with financial advisors before making investment decisions.
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