Mahindra & Mahindra (M&M) has unveiled impressive financial results for the March quarter, showcasing a remarkable 22% year-on-year growth in standalone profits, amounting to ₹2,437 crore. This surge can be attributed to a more lucrative lineup of SUVs and an upswing in tractor margins. Additionally, revenue from operations saw a significant increase of 25%, reaching ₹31,353 crore.
SUV Sales Drive Revenue Growth
During the quarter, M&M reported a substantial 18% increase in SUV volumes, exceeding 149,000 units sold. This growth solidifies the company’s position as a market leader, capturing an impressive 23.5% market share in the SUV segment.
- SUV Volume Growth:
- Over 149,000 units sold
- 18% increase compared to the previous year
- 23.5% market share in revenue
In the farm equipment sector, M&M also excelled, with sales surging 23% to more than 87,000 units during the same quarter.
Strong Profitability Metrics
The company’s Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) margin stood at 13.3%, slightly down from 13.5% in the same period last year. Notably, the profit margin for tractors reached 20.8%, marking the highest level in over three years.
Despite a ₹654 crore investment write-off during the quarter, M&M remains optimistic about its growth trajectory. Group CEO Anish Shah remarked, “We had anticipated a mid-to-high teens growth for our SUVs in FY25, and we have surpassed that with 20% growth, especially in a challenging market.”
Competitive Edge in Passenger Vehicles
M&M has reclaimed the Number 2 spot in the domestic passenger vehicle rankings, overtaking Tata Motors, which now holds the third position. The company’s growth outpaces the industry, effectively navigating the current market slowdowns faced by competitors like Maruti Suzuki and Hyundai.
For FY26, M&M aims for growth in the mid-to-high teens range. The company is set to unveil a new vehicle platform on August 15, which will be manufactured at the Chakan plant. This platform will include three new SUVs powered by internal combustion engines and two battery electric vehicles (BEVs), scheduled for release in 2026.
Expansion Plans and Future Production
To sustain its growth momentum, M&M is planning to establish a new factory to meet mid-term production demands. While the exact location is yet to be determined, Rajesh Jejurikar, Executive Director & CEO of the Auto and Farm Sector, stated, “This will be a large, futuristic plant. We have allocated the necessary cash flow for this project in our capital expenditure plans.” The new facility is primarily designated for passenger vehicles, with flexibility for other production elements as investment opportunities arise.
Current Capacity and EV Developments
M&M’s current capacity utilization for SUVs exceeds 90%, with models like the Thar Roxx and XUV 3XO operating at full capacity. The Scorpio is nearing full utilization, whereas the Bolero has some room for growth.
On the electric vehicle front, M&M reported delivering 6,300 units of the BE 6 and XEV 9e out of over 30,000 bookings. Jejurikar noted that the EV sector is already EBITDA-positive, even without the support of the Production-Linked Incentive (PLI) scheme.
“We are experiencing a 4-5 month waiting period for our EVs. Our strategy will be to ramp up production carefully, even though we have the capacity available. Overall, we are receiving very positive feedback,” he added.
By focusing on innovation and strategic growth, M&M continues to strengthen its position in both the SUV and electric vehicle markets, setting the stage for sustained success in the coming years.
