Group CEO and Managing Director Anish Shah said the quarter reflected the benefits of Mahindra’s diversified business model
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Mahindra & Mahindra’s record June-quarter earnings were far more than a one-time gain from the partial monetisation of its stake in CIE Automotive. Despite facing 400-500 basis points of commodity-cost inflation across its automotive and farm businesses, the group generated nearly 70 per cent of its incremental profit from core operating businesses, highlighting the growing strength of its diversified portfolio and the emergence of electric vehicles as a meaningful earnings contributor.Consolidated profit attributable to owners rose 34 per cent year-on-year to ₹5,455 crore, an increase of ₹1,372 crore. While the CIE transaction contributed ₹413 crore, the remaining ₹959 crore came from operating businesses, led by automotive, farm equipment, Mahindra Finance, Tech Mahindra and the Growth Gems portfolio.Calling it a case of “all our businesses coming together,” Group CEO and Managing Director Anish Shah said the quarter reflected the benefits of Mahindra’s diversified business model despite macroeconomic headwinds. Chief Financial Officer Amarjyoti Barua attributed the performance to calibrated price increases, supply-chain efficiencies and cost optimisation measures that helped offset sharply higher prices of steel, aluminium, copper and rubber.Operating businesses take the leadThe earnings bridge shows that the automotive business remained the largest contributor, adding ₹369 crore to the increase in attributable profit, followed by farm equipment at ₹197 crore. Mahindra Finance contributed ₹213 crore, Tech Mahindra ₹91 crore and the Growth Gems portfolio ₹88 crore, underscoring how financial services, technology and emerging businesses are becoming increasingly important drivers of group profitability, rather than merely serving as supporting businesses.The investment portfolio, including the CIE Automotive transaction, accounted for the remaining ₹413 crore, or about 30 per cent of the increase in attributable profit.EV business reaches an inflection pointThe sharpest turnaround came from Mahindra’s electric-vehicle business. Revenue surged 77 per cent to ₹5,430 crore, EBITDA jumped to ₹613 crore from ₹111 crore, and PBIT swung to a profit of ₹288 crore from a loss of ₹101 crore a year earlier, a ₹389-crore improvement that effectively transformed EVs from an earnings drag into a meaningful contributor to automotive profitability.Executive Director and CEO (Auto & Farm Sector) Rajesh Jejurikar said the XEV 9e emerged as India’s highest-selling electric SUV by volume during the quarter, while Mahindra continued to gain SUV revenue market share. Electric vehicles now account for 12 per cent of the company’s SUV portfolio, with capacity expansion underway to support future demand.Farm absorbs inflationThe farm equipment business added ₹197 crore to incremental profit as domestic tractor volumes rose 18 per cent and exports increased 15 per cent. Although reported margins were affected by a ₹340-crore impairment related to the exit from Turkish foundry operations, the core domestic-and-export tractor business delivered a 19.2 per cent PBIT margin, remaining at the upper end of Mahindra’s long-term 17-19 per cent guidance band. The company nevertheless maintained its FY27 tractor industry growth outlook at mid-single-digit levels.The takeawayThe June quarter marks a shift in Mahindra’s earnings profile. Rather than relying on investment gains, the group demonstrated that multiple operating businesses can simultaneously drive profit growth even during a period of elevated input costs. The turnaround in electric vehicles, alongside rising contributions from financial services and technology, suggests that Mahindra’s next phase of earnings growth is likely to be broader-based and less dependent on any single business segment.Published on July 30, 2026
