Kalyani Steels Jumps 11% on Strong Q4 Results and Rs. 10 Dividend Announcement
Kalyani Steels shares soar as strong Q4 earnings and a hefty dividend boost investor confidence
In a robust start to the trading week, Kalyani Steels Limited saw its shares surge by 11.2% on the BSE, closing at ₹774, up from the previous close of ₹695.8. The rally came after the company announced its Q4 FY25 financial results and declared a generous dividend of ₹10 per share, marking a 200% return on the face value of ₹5.
The rally catapulted the company’s market capitalization to ₹3,378.8 crores, reaffirming investor confidence in the steel manufacturer’s performance and outlook.
📈 Q4 FY25: Strong Revenue and Profit Growth
In its latest regulatory filing, Kalyani Steels reported a standalone revenue of ₹544.3 crores for Q4 FY25. This represents a 12.5% quarter-on-quarter (QoQ) growth from ₹484 crores in Q3 and an 8.3% year-on-year (YoY) rise from ₹502.8 crores in Q4 FY24.
Even more impressive was the bottom-line performance:
- Net profit stood at ₹79.3 crores, up by 43% QoQ from ₹55.4 crores and 27% YoY from ₹62.5 crores.
- The company also witnessed a notable increase in EBITDA, reaching ₹114.25 crores in Q4 FY25—a 27% growth compared to the same quarter last year.
- The EBITDA margin expanded by 300 basis points, improving to 21% from 17.9% in Q4 FY24.
This strong operating performance is a reflection of improved efficiencies, higher capacity utilization, and better pricing in the steel sector, despite global volatility in raw material prices.
🎉 Dividend Boost
Adding to the investor delight, the Board of Directors at Kalyani Steels recommended a dividend of ₹10 per equity share, translating to a dividend yield of 1.31%. This not only signals strong cash flows but also underscores the management’s commitment to shareholder value creation.
🏭 About Kalyani Steels
Founded as a part of the Kalyani Group, Kalyani Steels Limited is a leading integrated manufacturer of iron and steel products. With its state-of-the-art manufacturing facility located in Hospet, Karnataka, the company produces a wide range of carbon and alloy steels used across automotive, engineering, energy, and defense sectors.
📊 Key Financial Ratios and Stock Data
| Metric | Value |
|---|---|
| Market Capitalization | ₹3,345 Crores |
| Current Share Price | ₹765 |
| 52-Week High / Low | ₹1,279 / ₹651 |
| Stock P/E | 13.2 |
| Book Value | ₹436 |
| Dividend Yield | 1.31% |
| ROCE (Return on Capital Employed) | 15.6% |
| ROE (Return on Equity) | 14.1% |
| Face Value | ₹5 |
📌 Stock Performance Snapshot
While the stock has given negative returns of about 8% over the past year, it has made a strong comeback in 2025, gaining over 34% year-to-date. With today’s 11.2% rally, the momentum seems to be shifting in favor of the bulls, driven by strong financials and value-driven investing.
🤔 Why is Kalyani Steels Surging?
The sharp uptick in Kalyani Steels’ stock can be attributed to:
- Strong Q4 earnings beating market expectations
- Robust net profit growth with margin expansion
- Attractive dividend payout of ₹10/share
- Improved sentiment in the steel sector, supported by rising infrastructure demand and steel prices
❓ Frequently Asked Questions (FAQs)
Q1: Why did Kalyani Steels stock jump over 11% today?
A: The stock rose due to strong Q4 FY25 earnings, with net profit up 43% QoQ and the announcement of a ₹10/share dividend.
Q2: What were Kalyani Steels’ Q4 FY25 revenues and profits?
A: Revenue was ₹544.3 crores (up 12.5% QoQ), and net profit was ₹79.3 crores (up 43% QoQ).
Q3: What dividend has Kalyani Steels declared?
A: The company declared a final dividend of ₹10 per share for FY25, equivalent to 200% of its ₹5 face value.
Q4: What is the company’s EBITDA margin for Q4 FY25?
A: The EBITDA margin improved to 21%, up from 17.9% in Q4 FY24.
Q5: Is Kalyani Steels a good investment now?
A: While the stock was down 8% over the past year, it has gained 34% YTD and recently posted strong financials, making it a potentially attractive investment for long-term investors.
With solid financial performance, shareholder rewards, and positive market momentum, Kalyani Steels is certainly one stock to watch in the steel sector for FY26.
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