The automotive business remained the largest contributor to earnings
Mahindra & Mahindra Ltd on Thursday reported a 34 per cent year-on-year rise in consolidated net profit attributable to owners to ₹5,455 crore for the quarter ended June 30, while consolidated revenue increased 28 per cent to ₹58,188 crore, as broad-based growth across its automotive, farm equipment and services businesses helped it outperform Street expectations.The performance was stronger than analysts had anticipated before the results, with most brokerages expecting higher commodity costs and continued investments in electric vehicles to keep earnings growth modest.Instead, the diversified group delivered robust growth across businesses, prompting Group CEO and Managing Director Anish Shah to describe it as a “strong start to F27 despite a quarter marked by macro headwinds”, attributing the performance to the strength of M&M’s diversified portfolio and proactive execution across businesses.Auto drives growthThe automotive business remained the largest contributor to earnings, with consolidated revenue rising 32 per cent to ₹34,387 crore and profit increasing 21 per cent to ₹2,129 crore. Vehicle volumes rose 23 per cent to 304,000 units, including a 15 per cent increase in SUV sales, helping M&M retain its 25 per cent SUV revenue market share. Standalone automotive PBIT margin moderated to 7.1 per cent, or 8.3 per cent excluding eSUV contract manufacturing, reflecting commodity inflation and investments in electric mobility.Rajesh Jejurikar, Executive Director and CEO (Auto & Farm Sector), said the company expanded SUV revenue market share by 50 basis points during the quarter, while the XEV 9e emerged as India’s highest-selling electric SUV by volume. Despite inflationary pressures, the core tractor business maintained a PBIT margin of 19.2 per cent, he said.Farm, services add momentumThe farm equipment business continued its strong run, with tractor volumes rising 18 per cent to 158,000 units and market share improving to 44.9 per cent. Revenue and profit each grew 15 per cent y-o-y, although margins softened because of higher input costs.The group’s services businesses provided another leg of growth. Mahindra Finance expanded assets under management by 13 per cent, while Tech Mahindra improved EBIT margin by 330 basis points. Mahindra Logistics reported 23 per cent revenue growth and a three-fold jump in profit, helping consolidated services revenue rise 31 per cent and profit increase 80 per cent. Group CFO Amarjyoti Barua said disciplined supply-chain execution enabled the company to navigate “a very uneven environment, marked by significant commodity inflation”, while maintaining a strong balance sheet and focus on long-term value creation.Street focusWhile the headline earnings exceeded expectations, investors are likely to focus on the sustainability of automotive margins, the trajectory of commodity costs and the pace of electric-vehicle investments over the coming quarters. The results also come days after M&M announced the consolidation of its truck and bus operations under SML Mahindra, a move aimed at creating a unified commercial vehicle business.Published on July 30, 2026
