Tyre manufacturing giant MRF Ltd. has reported a strong performance for the fourth quarter of the financial year 2025, with a significant uptick in net profit and revenue. The company also announced a final dividend for its shareholders. The announcement of the Q4FY25 results have led to a 4.19% increase in the share price of the company.
Fourth Quarter Financial Performance
MRF’s net profit saw a notable increase of 31% year-on-year (YoY) in the fourth quarter, reaching ₹498 crore, up from ₹380 crore in the corresponding period of the previous year. Revenue from operations also registered a healthy increase, rising by 12% YoY to ₹6,944 crore, compared to ₹6,215 crore in the same quarter last year.
The company’s operational efficiency, measured by Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA), improved. EBITDA for the fourth quarter rose by 18% year-on-year to ₹1,043 crore. Consequently, the EBITDA margin saw an improvement, standing at 15% compared to 14.3% in the year-ago period.
Dividend Announcement
Alongside the Q4 results, MRF‘s board recommended a significant final dividend of ₹229 per share for the financial year 2025. This final dividend is equivalent to 2290% on the face value of ₹10 each. Including the two interim dividends of ₹3 per share each already declared and paid during the financial year, the total dividend payout for FY25 amounts to ₹235 per share.
Company Context and Stock Reaction
Beyond its core tyre manufacturing business, which caters to a wide range of vehicles including passenger cars, trucks, buses, motorcycles, and agricultural vehicles with products like radial, tubeless, and two-wheeler tyres, MRF has diversified into sectors such as conveyor belts, paints, and sports goods. Following the announcement of the strong results, shares of MRF saw positive movement on the stock exchange. The stock is trading 4.19% higher at ₹1,40,595.00 on the NSE after the results were released.
Disclaimer: This news is solely for educational purposes. The securities/investments quoted here are not recommendatory.
To read the RA disclaimer, please click here
