Samvardhana Motherson Q4 Results: Auto major Samvardhana Motherson International has made headlines with a 1:2 bonus issue and a final dividend of ₹0.35 per share, sparking strong investor interest. With the company celebrating its golden jubilee and reporting steady revenue growth, this move reinforces its shareholder-friendly stance. Despite a dip in net profit, the firm’s upbeat tone and corporate actions are driving optimism around long-term prospects. Let’s dive into the details and understand how this impacts your portfolio.
Q4 Results 2025: Samvardhana Motherson Declares ₹0.35 Dividend, 1:2 Bonus Issue – Stock Reacts Sharply
Samvardhana Motherson’s Bonus Share Issue – Key Highlights & Shareholder Impact
On May 29, 2025, Samvardhana Motherson’s board approved a 1:2 bonus share issue, meaning shareholders will receive 1 free equity share for every 2 they hold, pending shareholder approval through a postal ballot. This announcement was made as part of the company’s 50th-anniversary celebrations—a significant milestone that marks its journey from a family-run business in 1975 to a global auto components giant.
Bonus shares are often seen as a signal of strong corporate health. They don’t affect the company’s market cap but make shares more affordable, often improving liquidity and attracting retail investors. The company also stated the bonus shares will be fully paid-up and rank pari-passu, carrying the same rights as existing shares. This move is expected to boost market participation and confidence.
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Bonus Shares Record Date & Payment Date
As per the company’s exchange filing, the record date for determining eligible shareholders for the bonus shares shall be fixed and intimated in due course, in accordance with SEBI (LODR) regulations. Investors are advised to stay alert for this announcement on BSE and NSE platforms.
The company has also confirmed that the bonus shares will be credited within two months from the date of board approval, which was May 28, 2025. Therefore, the last date for allotment of bonus shares will be on or before July 28, 2025.
Samvardhana Motherson Q4 Results & Dividend Declaration – Mixed Earnings, Yet a Positive Outlook
Samvardhana Motherson Q4 results posted a net profit of ₹1,115 crore, marking a 22.75% decline year-on-year. However, revenue rose by 8.34% to ₹29,317 crore, suggesting consistent demand and operational strength. The dip in profit is attributed to higher raw material costs and global supply chain adjustments.
In addition to the bonus, the board recommended a final dividend of ₹0.35 per equity share. While modest, it reflects the company’s stable earnings and commitment to rewarding investors. Over the years, Motherson has maintained a steady dividend policy, and this continuity strengthens its reputation for trustworthiness among long-term investors.
Final Dividend Record Date & Payment Date
The record date to determine eligible shareholders for the final dividend has been set for Monday, June 23, 2025. Only shareholders on record as of this date will be eligible to receive the final dividend.
The final dividend will be paid within 30 days from the date of its declaration at the upcoming AGM, i.e., on or before September 26, 2025. This dividend is in addition to the interim dividend of ₹0.50 per share already paid for FY2024–25.
Share Price Reaction & Market Sentiment – Bulls Respond to Bold Moves
Following the Samvardhana Motherson Q4 Results, the stock surged up to 3.4% intraday, touching ₹153.68 on the NSE. The stock showed resilience despite profit decline, reflecting investor enthusiasm toward the bonus issue and dividend declaration. Traders and analysts view the move as a strategic step to maintain investor goodwill while navigating short-term financial challenges.
Over the past year, the stock has delivered stable returns, and the bonus issue could potentially reinvigorate price momentum. Investors should monitor the record date, which will be announced shortly, to ensure eligibility for bonus and dividend benefits.
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Final Word for Traders and Long-Term Investors
For traders, watch for short-term momentum as the record date approaches. For long-term investors, this bonus issue adds value while maintaining your stake’s worth. With its 50-year legacy, Samvardhana Motherson is showing it’s geared up for the next growth cycle.
Disclaimer: The views and investment insights provided here are based on publicly available information and do not constitute financial advice. Readers are advised to conduct their own research or consult certified financial experts before making investment decisions.
