Automobile giant Mahindra & Mahindra (M&M) has delivered impressive results for the fourth quarter of FY25, showcasing a substantial increase in both net profit and revenue. This growth can be attributed to strong demand for its SUVs and tractors. In the quarter ending March 2025, M&M reported a standalone net profit of ₹2,437.14 crore, marking a remarkable 21.85% rise compared to ₹2,000.07 crore in the same period last year.

Revenue Surge Driven by Vehicle Sales

M&M’s standalone revenue from operations also saw a significant boost, climbing 24.5% to reach ₹31,353.40 crore, up from ₹25,182.82 crore year-over-year. The company enjoyed a notable increase in vehicle sales during the January-March 2025 quarter:

• Total vehicles sold: 2,53,028 units (up 18% from 2,15,280 units YoY)
• Tractor sales: 87,138 units (up 23% YoY)
• Utility vehicle (UV) sales: 1.49 lakh units (up 18% YoY)

Market Share Gains and Operational Strength

Rajesh Jejurikar, Executive Director & CEO of M&M’s Auto and Farm Sector, expressed pride in the company’s performance. “We achieved a 310 bps year-on-year increase in SUV revenue share and a 480 bps gain in the light commercial vehicle (LCV) market share under 3.5 tons. In tractors, we attained our highest Q4 market share at 41.2%, gaining 180 bps YoY,” he stated.

The operational metrics were equally impressive, with earnings before interest, tax, depreciation, and amortization (EBITDA) rising 39% YoY to ₹4,683 crore. The EBITDA margin also improved, increasing by 150 basis points to 14.9%, compared to 13.4% in the previous year.

Strong Cash Flow and Dividend Announcement

Amarjyoti Barua, Group Chief Financial Officer of M&M, highlighted the company’s robust cash generation, stating, “We generated nearly ₹10,000 crore in cash during FY25, which positions us well for strategic investments that enhance shareholder value. We are pleased to announce a 20% increase in our dividend for FY26, reflecting this strong performance.”

M&M’s Board of Directors has declared a dividend of ₹25.3 per share, equivalent to 506% of the face value of ₹5 per share. This announcement was made during a board meeting held on May 5, 2025.

Stock Market Reaction

As of 11:55 AM, M&M’s share price was trading 0.74% higher, reaching ₹2,952.00 on the Bombay Stock Exchange (BSE). This positive market reaction underscores investor confidence in M&M’s ongoing growth trajectory.

In summary, M&M’s exceptional Q4 results are a testament to the company’s leadership in the automobile sector, driven by strong sales and strategic market positioning. The outlook for FY26 appears promising, with a commitment to enhancing shareholder returns through dividends and continued investment in growth opportunities.