Mahindra & Mahindra Achieves Milestone Quarterly Performance
Mumbai-based automotive giant Mahindra & Mahindra Ltd has delivered an exceptional financial performance, marking a quarter of robust earnings growth. The company's consolidated revenue soared to over ₹50,000 crore for the first time, reaching an impressive ₹52,100 crore. This represents a substantial 25% increase compared to the same period last year, underscoring the strength across its diverse business portfolio.
Profit Surges Despite One-Time Costs
Consolidated profit witnessed a remarkable 50% year-on-year surge, climbing to ₹4,675 crore. This growth occurred despite a one-time impact of ₹220 crore due to the implementation of new labour codes, highlighting the company's operational efficiency and resilience. Anish Shah, Group Chief Executive Officer and Managing Director of M&M, emphasized that the auto and farm segments continue to leverage their market leadership to drive results.
Segment-Wise Breakdown of Performance
The consolidated financials encompass not only the core auto and farm divisions but also include Mahindra Finance Ltd, Tech Mahindra Ltd, and various other businesses in real estate, hospitality, and logistics. In the passenger vehicles sector, which includes electric vehicles, revenues jumped 30% year-on-year to ₹30,370 crore. The profit before interest and tax (PBIT) for the automotive segment grew by a similar margin, reaching ₹2,607 crore.
Vehicle sales during the quarter totaled 179,000 units, a 26% increase from the previous year. This figure was slightly boosted by spillover from the preceding quarter, as customers delayed purchases in September 2025 in anticipation of an expected tax cut on new cars.
Farm Equipment Business Shows Mixed Results
In the farm equipment domain, where M&M holds the title of India's largest tractor maker, revenues rose by a fifth to ₹11,501 crore. However, PBIT for this segment declined by 7% on-year to ₹1,259 crore, indicating some pressure on profitability despite top-line growth.
Industry Context and Competitive Landscape
Earlier, peers such as Maruti Suzuki Ltd and Tata Motors Passenger Vehicles Ltd reported that demand driven by GST cuts helped bolster their domestic revenues by over a quarter compared to last year. In contrast, Hyundai Motor India Ltd experienced a more modest year-on-year revenue growth of less than 10%.
Global Trade Deals Present Opportunities
M&M remains optimistic about recent trade agreements India has signed with the European Union, the United States, and the United Kingdom. Anish Shah noted that it is unlikely for European carmakers to produce vehicles domestically and export them to India while remaining price-competitive with local manufacturers like Mahindra. He described these deals as an opportunity, particularly for accessing the European market.
Rajesh Jejurikar, Executive Director and CEO for Auto and Farm Sector at M&M, elaborated on the company's strategic plans. He mentioned that while most popular models are not currently available in left-hand drive format, this will change over the next couple of years to facilitate sales in Europe. Additionally, the trade deal with the US is expected to provide relief, as tractor exports to the US constitute a significant business. The company has been minimizing shipments to mitigate the impact of 50% US tariffs and has equipment stored in bonded warehouses, ready for release once tariffs are reduced to 18%.
Strong Domestic Demand and Outlook
In the domestic market, new models such as the XUV 7X0 and XEV 9S are performing well, leading to high demand that has depleted dealership inventories. Stock levels have dropped to an average of 15-20 days, down from the usual 30 days. Rajesh Jejurikar stated, "Overall, the demand outlook right now seems very robust, and we would expect to see high growth rates for the industry as well as for us. I think everyone is going to be constrained by capacity, because the demand right now is probably stronger than supply."
Market Reaction and Financial Disclosure
Shares of Mahindra & Mahindra closed flat on the BSE at ₹3,674.65, aligning with a stable benchmark Sensex. The company disclosed these results during trading hours, reflecting investor confidence in its sustained growth trajectory.
