Mahindra & Mahindra (M&M) saw a notable uptick in its share price on Monday morning, climbing over 1% ahead of its much-anticipated Q4 results announcement. The stock surged by as much as 1.53%, reaching ₹2,975.25 on the Bombay Stock Exchange (BSE). Investors are eager for insights as the company’s board convenes to discuss the financial outcomes for the fourth quarter of FY25.

Key Financial Highlights Expected from M&M

Scheduled for today, May 5, the board’s meeting will not only focus on the Q4 results but also consider a dividend proposal for equity shareholders based on the financial performance through March 31, 2025. Analysts predict that M&M will showcase solid growth in both net profit and revenue, largely fueled by strong sales volumes in recent months.

• Projected Net Profit Growth: Estimates suggest a year-on-year (YoY) increase in net profit of 13-21%, with figures expected to fall between ₹2,312 crore and ₹2,446 crore.
• Revenue Expectations: Anticipated revenue for Q4FY25 is forecasted to grow by 15-22% YoY, driven by increased sales in both automotive and tractor segments. Projections place top-line revenue between ₹29,540 crore and ₹31,321 crore.

Strong Volume Performance in Q4

In the March 2025 quarter, M&M’s total sales volume surged by 15.3%, rising to 319,451 units from 277,044 units in the same period last year. According to Kotak Institutional Equities, the tractor segment is expected to experience a significant 18% YoY revenue growth, largely due to a 23% increase in volumes. The automotive segment is also projected to see a 20% YoY revenue increase, propelled by a 17% YoY rise in volumes, particularly in the SUV and export categories.

Operational Insights

On the operational front, the earnings before interest, tax, depreciation, and amortization (EBITDA) for the March quarter is expected to jump by 34%, reaching around ₹4,259 crore, up from ₹3,177 crore a year earlier. This growth is anticipated to result in an EBITDA margin enhancement to 14.1%, benefiting from improved margins in the tractor segment and effective cost management strategies.

• EBITDA Margin Improvement: The overall EBITDA margin is projected to rise by 120 basis points (bps) YoY, driven by a favorable segment mix, operational leverage, and stringent cost control.
• Segment-Specific EBIT Margins: Automotive EBIT margins are expected to settle at 9.2%, while tractor segment margins may increase by 160 bps YoY, reaching 17.4%.

Future Considerations for Investors

Analysts from Motilal Oswal Financial Services (MOFSL) foresee a slight decline in auto segment margins, predicting a 20 bps QoQ drop to 9.5%. However, they expect the tractor segment margins to remain robust, improving by 150 bps YoY to 17.3%.

M&M is viewed as well-positioned among original equipment manufacturers (OEMs), thanks to its strong performance in SUVs and tractors, which outpaced competitors. Analysts will be closely monitoring the demand outlook for both tractors and passenger vehicles, shifts in product mix, the impact of electric vehicles (EVs), and updates regarding the acquisition of SML Isuzu.

At 9:20 AM, M&M shares were trading 1.19% higher at ₹2,965.35 on the BSE, reflecting positive market sentiment as investors await the company’s results.