MRF logs 29% profit jump, announces Rs 229 dividend

At Rs 1.4 lakh a piece, MRF isn't just India's priciest stock — it's also one of the most closely watched. And it's just given investors something to cheer.

The tyre major posted a solid 29 per cent jump in Q4 FY25 net profit to Rs 512 crore, riding on better margins and higher volumes. Revenue also revved up 11 per cent to Rs 7,075 crore. But take a step back, and the full picture isn't as smooth: FY25 profit dropped 10 per cent year-on-year to Rs 1,869 crore.

Still, the company wrapped things up with a juicy Rs 229 per share final dividend. The stock reacted well, gaining nearly 4 per cent today.

MRF Q4 FY25 results deliver grip

MRF's March quarter saw:

• Net profit : Rs 512 crore (up from Rs 396 crore)
  
• Revenue : Rs 7,075 crore (vs Rs 6,349 crore last year)
  
• EBITDA : Rs 1,043 crore, with margins at a strong 15 per cent
  
• Dividend : Rs 229 per share, taking FY25 total to Rs 235

Cost discipline, favourable input prices, and strong demand from auto OEMs helped the company end the year on a high note.

Quick glance: Q4 FY25 vs Q4 FY24

But FY25 wasn't all smooth tarmac.

Despite a strong Q4, the full-year profit slipped 10 per cent. Blame that on weaker margins earlier in the year and inflation biting into costs. Volumes in the replacement market also saw some pressure during the mid-year quarters.

Value Research Online Ratings

Value Research Stock Rating gives MRF an overall rating of 3 stars out of 5. The company's specific scores are as follows:

• Quality Score: 6/10
  
• Growth Score: 7/10
  
• Valuation Score: 4/10
  
• Momentum Score: 7/10

Final word

Investors cheered the Q4 comeback and the generous dividend. MRF shares jumped 4 per cent, trading at Rs 1,40,791. For a stock known for its heavyweight price tag, that's a decent move.

But the full-year miss does highlight that demand recovery and cost management will be key in FY26. Keep an eye on rubber prices, exports, and demand from the commercial vehicle segment. Those will decide if MRF can keep rolling or hits another speed breaker.

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Disclaimer: This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.