Synopsis:
Autoriders International Ltd’s board approved a 5:1 bonus issue, offering shareholders five new shares per existing one, with issuance funded from reserves and premium.
The company, known for providing car rental and fleet management services, has come into focus after its board recommended a significant corporate action. In this article, we look at the details of the proposed 5:1 bonus issue and what it could mean for investors going forward.
Autoriders International Limited‘s stock, with a market capitalisation of Rs. 151.46 crores, rose to Rs. 2,610.70, hitting the intraday upper circuit, up 5 percent from its previous closing price of Rs. 2,486.40. Furthermore, the stock over the past year has given a return of 1,641 percent.
Bonus Issue
Autoriders International Ltd’s board met on September 29, 2025, and approved a bonus issue of shares in a 5:1 ratio, meaning shareholders will get five new shares for every one share they already hold, provided the proposal gets shareholder approval. These bonus shares will be issued from the company’s reserves and securities premium, and the figures used for this decision are audited as of March 31, 2025.
A total of 2,900,700 new equity shares are expected to be issued, with the bonus credited or dispatched within two months from board approval. After the bonus issue, paid-up equity capital will rise from 58,01,400 shares to 3,48,08,400 shares.
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Q1 Financial Highlight
Revenue for Q1FY26 stood at Rs. 23.27 crore, showing a 17.45% year-on-year (YoY) increase from Rs. 19.82 crore in Q1FY25. Compared to Q4FY25 revenue of Rs. 24.91 crore, this marks a slight quarter-on-quarter (QoQ) decline of 6.58%. Profit in Q1FY26 was Rs. 1.78 crore, up 28.06% YoY from Rs. 1.39 crore in Q1FY25, but down 44.55% QoQ from Rs. 3.21 crore reported in Q4FY25.
Over the past three years, the company achieved a strong sales CAGR of 40% and a profit CAGR of 38%, reflecting robust growth momentum. The return on equity (ROE) also grew at a healthy CAGR of 27% during this period, indicating improving profitability and efficient capital utilization. These metrics highlight sustained growth despite some recent QoQ profit softening.
Written By Fazal Ul Vahab C H
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