In a development keenly tracked by investors and auto sector analysts, Eicher Motors Ltd has announced the record date for its proposed final dividend of ₹70 per equity share for the financial year ended March 31, 2025. The announcement comes following the company’s strong financial performance in FY25 and consistent focus on shareholder value creation.
Record date and dividend details
As per the regulatory filing, Eicher Motors’ Board of Directors has fixed July 19, 2025 as the record date to determine the eligibility of shareholders for the ₹70 per share dividend payout.
The dividend is subject to approval by shareholders at the upcoming Annual General Meeting (AGM) scheduled for July 25, 2025. If approved, the dividend will be credited or dispatched within 30 days from the date of AGM.
Key highlights of the dividend announcement
- Dividend amount: ₹70 per equity share
- Face value of share: ₹1 each
- Dividend yield (approx.): 0.85% based on current share price
- Record date: July 19, 2025
- Ex-dividend date: July 18, 2025
- AGM date for approval: July 25, 2025
Recent financial performance
Eicher Motors reported a strong set of numbers for the financial year FY25, driven by robust sales of Royal Enfield motorcycles and steady performance in the CV segment (through its JV with Volvo for VE Commercial Vehicles).
| Particulars (Consolidated) | FY25 | FY24 | % Change YoY |
|---|---|---|---|
| Revenue (Rs crore) | 16,240 | 14,750 | +10.1% |
| EBITDA (Rs crore) | 4,120 | 3,760 | +9.5% |
| EBITDA margin (%) | 25.4 | 25.5 | -0.1 bps |
| Net Profit (Rs crore) | 3,230 | 2,940 | +9.8% |
| EPS (Rs) | 118.5 | 108.4 | +9.3% |
Dividend payout track record
The company has a consistent history of dividend payouts reflecting its healthy cash flows and asset-light operational model. Over the past five years:
| Financial Year | Dividend Per Share (₹) | % Increase YoY |
|---|---|---|
| FY21 | 37 | – |
| FY22 | 40 | +8.1% |
| FY23 | 45 | +12.5% |
| FY24 | 60 | +33.3% |
| FY25 (proposed) | 70 | +16.7% |
The FY25 proposed dividend marks the highest-ever absolute dividend payout by Eicher Motors to date.
Impact on stock price
Following the dividend announcement, Eicher Motors’ share price rose by nearly 1% intraday, touching an early high of Rs 8,250 on NSE before paring some gains to trade around Rs 8,160 by noon. Market analysts noted that the dividend declaration reiterates the company’s focus on balanced capital allocation between expansion and shareholder returns.
Analyst views
According to Motilal Oswal Auto Sector Analyst Sandeep Rao:
“Eicher Motors’ dividend is well covered by its net profits and free cash flows. The payout ratio remains comfortable. Going forward, while Royal Enfield continues to drive cash generation, VE Commercial Vehicles will support revenue diversification. Investors can expect healthy payouts in line with earnings growth.”
Strategic developments in FY25
Apart from strong dividend declaration, FY25 saw Eicher Motors making several strategic moves:
- Launch of new Himalayan 650 and Hunter Scrambler 450 which strengthened mid-segment offerings
- Expansion into Indonesia and Thailand CKD assembly markets to reduce import duties and improve margins
- Commissioning of a new EV assembly line for Royal Enfield’s upcoming electric motorcycle expected to launch in H2 FY26
- Focus on export market share growth, with overseas sales contributing nearly 12% to total motorcycle volumes in FY25
Shareholding pattern
As of March 31, 2025, the shareholding pattern stood as:
| Category | Holding (%) |
|---|---|
| Promoters | 49.2 |
| Foreign Institutional Investors (FIIs) | 27.4 |
| Domestic Institutional Investors (DIIs) | 14.1 |
| Public & Retail | 9.3 |
What should investors know?
Key points for investors holding Eicher Motors stock:
- To receive the ₹70/share dividend, one must own Eicher Motors shares before the ex-dividend date (July 18, 2025).
- The payout will be taxable in the hands of shareholders as per prevailing income tax laws.
- Dividend yield remains modest given the stock’s price rally, but consistent payouts indicate strong fundamentals.
Future outlook
Eicher Motors remains focused on:
- Doubling Royal Enfield’s export footprint by FY27
- Launching its first electric motorcycle in FY26 with an expected range of 200 km per charge
- Further expansion in South-East Asia and Latin America through CKD assembly operations
- Enhancing profitability in VE Commercial Vehicles through new Pro series launches
Conclusion
Eicher Motors’ latest dividend announcement reaffirms its commitment to value creation for shareholders even as it continues strategic investments for future growth. Analysts maintain a ‘Buy’ rating with a 12-month target of Rs 9,300, citing robust cash flows, brand strength in premium motorcycles, and earnings visibility as key positives.
Disclaimer: This news article is for informational purposes only. Dividends and stock investments carry market risks. Readers are advised to consult their financial advisor before making any investment decisions based on this update.
