Bosch Limited Declares Record ₹512 Dividend in Q4 FY25: A Deep Dive
1. Overview
In its Q4 results for the financial year ended March 2025, Bosch Limited—the Indian arm of the German engineering giant—announced its highest-ever final dividend of ₹512 per equity share (face value ₹10). This marks a significant increase from the combined interim and final payout of ₹375 per share in FY24, underlining the company’s strong cash flows and commitment to rewarding shareholders.
2. Dividend Details
Key dates and figures:
| Parameter | Detail |
|---|---|
| Final Dividend Declared | 5120% (₹512 per share of ₹10) |
| Total Dividend FY24‑25 | ₹512 per share (vs. ₹375 in FY23‑24) |
| Record Date | July 29, 2025 |
| Payment Date | On or after August 18, 2025 (subject to AGM approval) |
3. Q4 FY25 Earnings Snapshot
For the quarter ended March 31, 2025, Bosch reported:
| Metric | Q4 FY25 | Q4 FY24 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹4,911 crore | ₹4,232 crore | +16% ↑ |
| Profit After Tax (PAT) | ₹554 crore | ₹570 crore | –2.8% ↓ |
| Major Drivers | Growth in Tractor & Passenger Car segments | — | |
Additionally, Bosch decided to divest its 6.97% stake in Nivaata Systems Pvt. Ltd., Bengaluru, marking the culmination of its digital office-commute venture initiated in 2020.
4. Dividend Yield Analysis
As of May 27, 2025, Bosch’s share price closed at ₹32,513.60 on the BSE. The standalone final dividend of ₹512 translates to a yield of approximately 1.57%, calculated as:
(₹512 / ₹32,513.60) × 100 ≈ 1.57%
This yield is above the average dividend yield (~1.2%–1.4%) of BSE Auto Components companies, reflecting Bosch’s robust free cash flow and steady operational performance.
5. Industry Comparison: Case Study of Samvardhana Motherson
Comparing Bosch with peer Samvardhana Motherson International Limited (SAMIL) illustrates divergent payout strategies:
| Company | Total Dividend FY24‑25 | Record Date | Payment Date | Dividend Yield |
|---|---|---|---|---|
| Bosch Limited | ₹512.00 per share | July 29, 2025 | On/after Aug 18, 2025 | 1.57% |
| Samvardhana Motherson | ₹0.35 final + ₹0.50 interim = ₹0.85 | June 23, 2025 | On/before Sept 26, 2025 | ~0.06% (₹0.85/₹1,450*) |
*Assuming SAMIL share price ~₹1,450 on record date.
While Bosch’s payout underscores confidence in core auto-component margins, SAMIL’s conservative ₹0.35 final dividend (plus ₹0.50 interim) reflects its focus on reinvestment and balance-sheet strengthening even as revenue grew ~8.3% YoY (Q4 FY25) and PAT contracted ~22.8% YoY [oai_citation:0‡The Economic Times](https://m.economictimes.com/markets/stocks/news/samvardhana-motherson-international-q4-results-pat-drops-by-23-yoy-to-rs-1115-cr-revenue-up-8/articleshow/121488924.cms?utm_source=chatgpt.com) [oai_citation:1‡Samco](https://www.samco.in/knowledge-center/articles/samvardhana-motherson-q4-results-profit-slips-22-7-revenue-climbs-8-bonus-and-dividend-announced/?utm_source=chatgpt.com).
6. Strategic Impact & Shareholder Value
Bosch’s record dividend payout achieves multiple strategic objectives:
- Shareholder Confidence: A 36% increase over last year’s ₹375 cements Bosch’s reputation for consistent rewards.
- Signal of Cash Strength: Strong cash flows from tractor and passenger-car segments fund both operations and distributions.
- LIC Backing: With the Life Insurance Corporation of India holding 1.69% stake, Bosch aligns with LIC’s long-term investment horizon, boosting retail investor trust.
- Market Sentiment: Post-announcement, Bosch shares rose ~3% week-on-week and ~16% month-on-month, reflecting positive market reaction [oai_citation:2‡ET Now](https://www.etnownews.com/markets/rs-512-dividend-announced-in-q4-results-2025-highest-ever-payout-by-auto-components-firm-payment-date-earnings-article-151733116).
7. Conclusion
Bosch Limited’s declaration of a ₹512 per-share dividend for FY25 stands as its highest-ever payout, underpinned by robust earnings, strategic divestments, and a focus on shareholder returns. When benchmarked against peers such as Samvardhana Motherson, Bosch’s yield and absolute payout substantiate its financial health and growth trajectory in the Indian auto components sector. Investors seeking steady income may find Bosch an attractive proposition heading into FY26, especially with continued growth in key automotive segments.