Swaraj Engines Declares Highest Dividend Rs.104.50 for FY25

Introduction

Swaraj Engines Ltd has witnessed stellar performances in 2025, with impressive financial results and strategic moves. The company declared its highest-ever dividend at Rs. 104.50 per Swaraj Engines share for FY25, reflecting robust cash flows and shareholder returns. In Q1 FY26, it reported strong revenue at Rs. 504 crores with a net profit of Rs. 49.68 crore, up 9.38%. The Swaraj Engines share price continued its bullish trend and was trading near Rs. 3,730, maintaining a market capitalization of Rs. 4,889 crore. These milestones indicate the leading position of Swaraj Engines in the agricultural engine sector, powered by stable growth and investor confidence-easily tracked on platforms such as the ORCA app from Enrich Money.

 

About the Company

Swaraj Engines Ltd. is the largest manufacturer of diesel engines used mainly in farm machinery. As part of the Mahindra Group, the company has shown tremendous growth and operational efficiencies for the last few quarters. It recently approved an expansion to increase its engine production capacity to 240,000 units annually funded through internal resources, thereby fulfilling the growing market demand with technology upgrades. Known for their consistent profitability, Swaraj Engines recorded a net profit margin of around 10.20% and return on equity above 40%. 

This company always stays in the limelight regarding innovation, capacity enhancement, and shareholder value among investors tracking Swaraj Engines share price through Enrich Money's ORCA app. Put simply, such a mix of strong fundamentals, proactive growth initiatives, and increasing capacity makes Swaraj Engines one of the most attractive stocks in India's agri-engine industry.

 

Key Facts

 

Swaraj Engines Ltd Recent Moves & Developments in 2025

January 2025: Announced plans to increase the annual production capacity of engines from 195,000 to 240,000 units. This would be supported by an investment of about Rs.220 crore funded through internal accruals, keeping in mind recent demand growth and modernization of technology.

Financial performance for FY24-25: Reported recently in March 2025, revenue grew strongly by 18.4% at Rs.1,699 crore, while net profit increased by 20.4% to Rs.166 crore. This reflects the continuity of steady growth and operational efficiencies.

April 2025: Swaraj Engines announced its highest-ever dividend of Rs.104.50 per share for FY25, reflecting the company's strong cash flows and shareholder-friendly approach. The record date was set for June 27, 2025.

June 2025: The company announced Q1 FY26 results with net sales reaching Rs.504 crore, up 8.57% year-on-year, while net profit increased 15.7% to approximately Rs.50 crore, highlighting consistent profitability.

July 2025: Q1 net sales were reiterated and confirmed at Rs.484 crore, as continuous signs of growth were seen. According to market experts, the strong earnings momentum provided bullish price targets of Rs.3,800.

October 2025: Announcement of key leadership changes including the resignation of Chairman Rajesh Jejurikar flagged a potential strategic realignment at the board level. Despite strong profitability, the stock price faced downward technical pressure.

November 2025: Swaraj Engines continues to maintain a healthy market capitalization of nearly Rs.4,889 crore with its share price ruling at Rs.3,730. The company is financially in good health, as it has negligible debt and healthy margins.

 

Evolution and Corporate Journey of Swaraj Engines Ltd

1977: Swaraj Engines Ltd was incorporated as a manufacturer of diesel engines, mainly for agricultural machinery, thus laying the foundation for long-term growth.

1980s: The company gradually expanded its product portfolio and production capabilities, becoming a prominent supplier of engines for tractors and farm equipment in India.

1995: Swaraj Engines Ltd came into the public equity market and got listed on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), thereby enhancing financial transparency.

2000s: The company enhanced its technical collaborations and invested in R&D for bettering the efficiency of engines and meeting changing emission standards to maintain its competitive position.

2010: Swaraj Engines became part of the Mahindra Group ecosystem, leveraging the group's extensive distribution network and brand equity to accelerate growth.

2015-2018: Period of modernization characterized by expansion of manufacturing facilities, introduction of new engine variants, and focus on capacity enhancement to meet growing market demand.

2020: Despite the challenges from the pandemic, strategic cost management has helped the company to sustain its operations while keeping its profitability stable.

2023: Swaraj Engines announced a major capacity expansion plan to increase annual engine production, signaling its commitment to long-term growth.

2024: Financial performance improved considerably with increasing revenues and margins, driven by efficient operations and strong customer demand.

2025: The company announced its highest-ever dividend of Rs.104.50 per share, declared consistent growth in profits through quarterly results, and reshuffled the leadership structure in accordance with future strategy.

 

Financial Performance Overview

Quarterly Results (Rs crore)

Insight: Swaraj Engines posted steady revenue growth of 8.57% and a 9.38% rise in net profit year-over-year in Q2 FY26, maintaining a stable EBITDA margin above 14%, indicating consistent operational efficiency and profitability.

 

Yearly Financials (Profit & Loss) (Consolidated)

Insight: FY25 witnessed robust revenue and profit growth with significant improvements in return ratios, reflecting efficient management and strong market positioning.

 

Balance Sheet Highlights

Insight: Strong balance sheet with growing reserves, minimal borrowings, and significant fixed asset expansion supports ongoing capacity growth and technological upgrades.

 

Cash Flow Summary

Insight: Consistent positive operating cash flow underpins sustainable business growth and steady investment in capacity expansion.

 

Shareholding Pattern (Q2 FY26)

Insight: Promoter holding remains strong and stable, ensuring strategic control while institutional and retail investors hold significant stakes.

 

Peer Comparison

Insight: Swaraj Engines demonstrates a competitive ROCE and attractively valued P/E ratio among peers, backed by a solid market cap, positioning it well within the diesel engine industry.

 

Corporate Actions of Swaraj Engines Ltd in 2025

Dividend Declarations:

Swaraj Engines continued its legacy of rewarding shareholders handsomely in 2025. In the spotlight, it declared the highest-ever dividend of Rs.104.50 per share for the FY-2024-25. The ex-dividend and record date for this payout was June 27, 2025. 

Swaraj Engines has not split the stock, issued any bonus, or executed any rights issue in recent times as of 2025. There were no buyback announcements or new rights issues in 2025.

 

Future Plans and Strategy: Perspective Beyond 2026

Swaraj Engines is all set for an exciting period of growth starting from 2026 onwards through continuous capacity expansion, technological innovation, and deepening of market penetration. 

The management intends to increase the annual capacity of engines from 240,000 units at present to cater to the emerging demand from the agricultural sector. The investments are proposed to be met principally through internal accruals. 

Renovation of engine designs in conformity with severe emission standards, along with enhancement in fuel efficiency, will be accorded due priority in tune with the country's emergence into sustainability on a global platform. 

Other strategic priorities of Swaraj Engines include leveraging the Mahindra Group's extensive distribution network to go deeper in both domestic and potential international markets.

 

Strengths and Weaknesses in 2025

Strengths:

Strong Financial Performance: Revenue in Q2 FY26 stood at Rs.504 crore, while the net profit was around Rs.50 crore for Swaraj Engines. The engine segment is resilient and shows steady growth.

Strong Profitability: Sustained EBITDA margins of approximately 14% and ROCE greater than 55% indicate effectiveness related to operations and capital utilization.

Shareholder Returns: The highest-ever dividend of Rs.104.50 per share declared in 2025 reinforces the company's commitment to rewarding investors.

Stable Capital Structure: The near-zero debt ensures financial flexibility with low risk.

Solid Promoter Holding: The promoters collectively own more than 52% to ensure strategic control, with aligned interests.

 

Weaknesses:

Limited Diversification: The heavy dependence on the agricultural engine segment exposes the company to sector-specific risks.

No Recent Equity Capital Actions: Without stock splits or bonus issues, retail investor participation could be limited, as well as an improvement in liquidity.

Market Size Constraints: Although dominant in India, international expansion remains a future goal, for the time being limiting global footprint. 

 

Market Performance & Investor Sentiment 

Swaraj Engines share price was trading at around Rs.3,730 in recent times, riding on a decent market capitalization of near Rs.4,889 crores. Despite the volatility valuation being impacted by sector fluctuations, the Swaraj Engines share price has placed itself strong with continued quarterly earnings and on the back of fundamentals. 

Investors like the company's healthy return ratios, stable dividend policy, and growth plans envisaged, and, therefore, continue to have positive sentiment. The P/E of around 27x remains attractive compared to its peers having similar profitability levels but relatively higher valuations, suggesting reasonable pricing and growth prospects. 

Platforms like Enrich Money's ORCA app enable seamless facilitation of investors regarding Swaraj Engines share price trends and corporate updates for informed decision-making.

 

Conclusion

Swaraj Engines Ltd posted great financial strength and steady growth during 2025, as depicted by the highest-ever dividend of Rs.104.50 per share declared for FY25. With Q1 FY26 revenue of Rs.504 crore and a net profit of Rs.49.68 crore, the company reflects good operational efficiency and strong profitability. Trading near Rs.3,730, Swaraj Engines maintains an approximate market cap of Rs.4,889 crore and has been able to sustain investor confidence through good fundamentals and strategic initiatives on growth. Supported by Mahindra Group’s ownership and expanding capacity, it is one of the prime players within India's agricultural engine industry, hence another favorable choice for investors who track Swaraj Engines share price through the Enrich Money ORCA application.

 

Frequently Asked Questions

What is the highest dividend declared by Swaraj Engines Ltd for FY25?

Swaraj Engines announced its highest-ever dividend of Rs.104.50 per share for FY25.

How did Swaraj Engines fare financially in Q1 FY26?

Swaraj Engines reported revenues at Rs.504 crore and net profit at Rs.49.68 crore, up 9.38% over the year-ago period.

What is the present market capitalization of Swaraj Engines?

The market capitalization is approximately Rs.4,889 crore with a share price close to Rs.3,730. 

What recent capacity expansion plans has Swaraj Engines announced? 

The company proposes to enhance the annual engine production capacity from 195,000 to 240,000 units, financed through internal accruals.

How can an investor track the share price and updates about Swaraj Engines? 

Swaraj Engines share price and updates can be tracked by investors on platforms such as Enrich Money’s ORCA app for easy access.

 

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