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Informist, Thursday, Jul. 30, 2026

 

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--M&M Apr-Jun net profit INR 36.85 bln 
--Analysts saw M&M Apr-Jun net profit at INR 35.96 bln 
--M&M Apr-Jun revenue INR 419.59 bln 
--Analysts saw M&M Apr-Jun revenue at INR 417.39 bln 
--M&M Apr-Jun net profit INR 36.85 bln vs INR 34.50 bln year ago 
--M&M Apr-Jun revenue INR 419.59 bln vs INR 341.43 bln year ago 
--M&M Apr-Jun operating margin 12.27% vs 14.05% year ago 
--M&M Q1 automotive revenue INR 310.33 bln vs INR 249.49 bln year ago 
--M&M Q1 farm equipment revenue INR 109.47 bln vs INR 91.86 bln year ago 
--M&M Apr-Jun automotive ops EBIT INR 22.12 bln vs INR 22.21 bln year ago 
--M&M Apr-Jun automotive ops EBIT margin 7.1% vs 8.9% year ago 
--M&M Apr-Jun farm equipment EBIT INR 20.28 bln vs INR 18.19 bln year ago 
--M&M Apr-Jun farm equipment EBIT margin 18.5% vs 19.8% year ago 
--M&M Q1 SUV revenue market share 25%, farm equipment market share 44.9% 
--M&M Q1 SUV revenue market share up 50 bps on quarter 
--M&M tractor business market share up 280 bps on qtr to 44.9% in Q1

--M&M Q1 electric SUV ops EBIT INR 2.88 bln vs EBIT loss INR 1.01 bln yr ago 

--M&M Q1 electric SUV ops EBIT margin 5.3% vs (-)3.3% year ago 

 

By Gopika Balasubramanium

 

MUMBAI – Mahindra & Mahindra Ltd.'s bottom line grew at a slowest pace in eight quarters but came in above the consensus estimate. The moderation in net profit growth was primarily due to substantial rise in total expenses on account of spike in commodity prices and a slow down in sales growth. The company's top line growth was the slowest in three quarters, even as the metric came in better-than-expected. 

 

The Bolero-maker reported a net profit of INR 36.85 billion for the June quarter, up around 7% on year. The net profit was a tad above the consensus estimate of INR 35.96 billion. Sequentially, the metric fell over a percent. The company's revenue from operations, including its income from investments related to subsidiaries, rose around 23% on year and came in at INR 419.59 billion. And, sequentially, this rose over 6%.

 

As soon as the results were declared, the company's shares rose a shade over 3% to a high of INR 3,327. However, it pared gains within minutes and at 1316 IST, traded 0.8% higher at INR 3,248.40 on the National Stock Exchange.

 

During the June quarter, the company earned INR 7.76 billion as other income, which registered an on-year growth of 6%. Including this and the income from operations, M&M's total income rose 22.5% on year to INR 427.35 billion. The Bolero-maker's operating margin for the June quarter contracted to 12.27% from 14.05% in the corresponding quarter a year ago.

 

During the quarter, the company spent INR 379.59 billion in total. The overall costs for M&M rose around 25% on year. Of this, raw material costs, which rose 22.5% on year to INR 306.80 billion, made a bulk of total expenditure. To note, all the items under expenses rose on an year-on-year basis during the quarter. It booked INR 13.85 billion as costs for purchase of stock-in-trade, which rose around 18% on year. Its other expenses rose 37% on year to INR 27.09 billion. It paid INR 14.06 billion as employee costs, which saw an 8% on-year rise.  

 

SEGMENT, MARKET SHARE

M&M's automotive business, which accounts for around 74% of its total sales, earned INR 310.33 billion in revenue, up over 24% on year. This segment houses M&M's utility vehicles. The segment's overall volumes in the June quarter were 304,000 units, while volumes of utility vehicles were at 175,000 units. The company's SUV revenue market share expanded by 50 basis points on quarter to 25% in the June quarter. The segment's operating EBIT was largely unchanged from the year-ago quarter and came in at INR 22.12 billion and the operating EBIT margin contracted sharply to 7.1% from 8.9% a year ago. 

 

During the June quarter, sales from battery electric vehicles jumped 77% on year to INR 54.30 billion. This sub-segment sells M&M's major electric sports utility vehicles such as the XEV 9 and BE 6. Its EBIT for the reportering quarter was INR 2.88 billion, a rebound from a EBIT loss of INR 1.01 billion a quarter ago. The EBIT margin was for the reporting quarter was 5.3% against (-)3.3% year ago.

 

M&M's revenue from the farm equipment segment, which offers tractors, harvestors, and the likes, grew 19% on year to INR 109.47 billion. The segment's overall volume in March quarter was 158,000 units. The tractor business' market share expanded to 44.9% from 42.1% from the trailing quarter. The segment's EBIT rose 11% on year to INR 20.28 billion and the EBIT margin was 18.5%, down 130 bps from a year ago.  

 

 

CAPACITY EXPANSION, MERGER

M&M is on track to achieve the capacity expansion, which the company had planned at the end of March quarter, for its sports utility vehicles and battery electric vehicles for the full financial year 2026-27 (Apr-Mar). This was done as part of the company's "debottlenecking" and adding new product capacity. 

 

The company will achieve expansion of its monthly production capacity of sports utility vehicles running on internal combustion engines to 60,000 by the end of September from 56,500 capacity as on Mar. 31. It also said that it was on track to add capacity to produce additional 10,000 units of such cars at FY27-end to cater to new launches in FY28.

 

M&M said it was on track to ramp up production capacity of its battery-run sports utility vehicles by an additional 4,000 units by the end of FY27 in anticipation of new launches for FY28. As of the end of the March quarter, the company produced 8,000 operational electric cars a month. With these plans being executed within the timeline, M&M would have added additional capacity of 14,000 new cars, ready for new launches in FY28.   

 

M&M's board alongside approving the June quarter results, it also approved merging its wholly-owned subsidiary Mahindra Investment Co. (Mauritius) Ltd. to itself. The Mauritius company offers a wide range of products and solutions ranging from SUVs, pickups, commercial vehicles and tractors to farm machinery, gensets, and construction equipment. This was done to simplify regulatory compliances and to reduce operational costs.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Akul Nishant Akhoury

 

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