Mahindra & Mahindra Ltd. reported a strong March quarter performance, with consolidated net profit rising 42 per cent year-on-year to Rs 4,668 crore, driven by robust demand for sport-utility vehicles (SUVs), tractors and services. Revenue for the quarter grew 29 per cent to Rs 54,982 crore, comfortably ahead of Street expectations.
Bloomberg estimates had pegged consolidated revenue at Rs 31,353 crore and EBITDA at Rs 4,683 crore. On the standalone side, estimates stood at revenue of Rs 38,115 crore, EBITDA of Rs 5,365 crore and net profit of Rs 3,491 crore, indicating the company outperformed on key metrics.
On a standalone basis, net profit rose 53.3 per cent to Rs 3,737 crore, beating estimates. Profitability improved, with PAT margin expanding to 8.5 per cent from 7.7 per cent a year earlier. The board has recommended a final dividend of Rs 33 per share for FY26.
Auto, farm businesses drive growth
The automotive business remained the main growth engine, with segment revenue rising 32 per cent year-on-year to Rs 34,294 crore. Profit after tax from the segment jumped 49 per cent to Rs 2,553 crore. The farm equipment segment reported revenue of Rs 10,022 crore, up 26 per cent, while PAT stood at Rs 768 crore, broadly stable. Tractor volumes surged 36 per cent during the quarter, supported by strong rural demand.
Market share gains, SUV leadership
Mahindra emerged as the second-largest passenger vehicle manufacturer in FY26, with SUV volumes rising nearly 20 per cent to 6,60,276 units. The company retained its leadership in SUV revenue market share at 25.3 per cent. “In Q4 FY26, the SUV revenue share increased, retaining the No. 1 position. Tractors achieved the highest-ever billing of over 5 lakh units in FY26,” said Rajesh Jejurikar, Executive Director and CEO (Auto and Farm Sector).
Capacity ramp-up, EV push
To sustain growth, the company is scaling up production capacity. Monthly capacity is set to increase to about 82,000 units in FY27 from 64,500 units at the end of FY26, largely through optimisation of existing facilities. Electric vehicles are emerging as an additional growth lever, with cumulative sales of around 55,000 units. The company is also targeting capacity of up to one million units annually by the end of the decade.
Mahindra expects to generate an additional Rs 4,100 crore in revenue through wider use of artificial intelligence in its automotive operations. Group CEO and MD Anish Shah said AI is already improving efficiency and customer engagement.
Outlook and risks
While demand remains firm, the company flagged supply constraints in select segments and ongoing restructuring in its international farm business. “With these changes, we see a path to profitability,” Jejurikar said. It added that geopolitical developments could impact demand and supply dynamics, even as it prepares for the next phase of growth with new products, higher capacity and a sharper focus on core markets.