Mahindra & Mahindra (M&M) posted a 32% year-on-year (y-o-y) surge in standalone net profit to Rs 3,450 crore in the June quarter, helped by a richer product mix in the SUV category and a better average selling price in the tractor segment.
The Mumbai-based company, which makes Scorpio and Thar sports utility vehicles (SUVs) as well as Swaraj and Oja brand of tractors, beat the Bloomberg net profit estimate of Rs 3,101 crore. This was the third biggest-ever quarter for the company in terms of profit.
Revenue from operations and automotive segment surged
Its standalone revenue from operations improved 27% y-o-y to Rs 34,083 crore, beating the Bloomberg estimate of Rs 33,980 crore. Revenue from its automotive segment surged 32% to Rs 24,949 crore, while revenue from its farm equipment division improved 13% to Rs 9,186 crore.
The total number of vehicles sold by the company during the June quarter stood at 247,249, a growth of 17% y-o-y. The total number of tractors sold went up by 10% to 132,964 units.
Operating margins declined to 14.05% in the quarter, from 15.17% in the year-ago period.
Riding high on demand for its new range of SUVs such as XUV3XO and Thar Roxx, M&M closed the June quarter with the second spot in the passenger vehicle segment, pushing Hyundai and Tata Motors behind but trailing Maruti Suzuki.
M&M claimed to have a higher-than-industry-average penetration of electric vehicles in the SUV segment at 7.8% as against 5.6% recorded by the industry. With the BE 6, XEV 9e and XUV 400, it had a volume market share of 31.8% in the e-SUV segment.
M&M FY26 target
For FY26, M&M is targeting a percentage growth that will be in “mid- to high-teens”. It will showcase a new vehicle platform on August 15, which will be produced at the Chakan plant. Three SUVs powered by internal combustion engines and two battery electric vehicles will be launched in 2026.
While the broader sentiment in the automotive market remains weak, M&M believes that the consumer sentiments will pick up during the upcoming festive season given that monsoon has been favourable so far.
Anish Shah, Group CEO and managing director, M&M, said, “The rural sentiment is better and we are seeing that in our tractor business. Urban continues to be weak but fundamentals are strong. The rate cuts, greater liquidity and the overall sentiment being weaker will likely turn around given that we have had a good monsoon so far.”
While some two-wheeler makers have raised concerns with regards to depleting stock of rare earth magnet, M&M clarified that it is not facing any such issue and that its production will be carried on as planned.
Rajesh Jejurikar, executive director & CEO (auto and farm sector), M&M, said, “We are comfortably covered for rare earth magnet issue and there is no disruption in production. we have taken a series of actions — some of it is around the inventory. We are comfortably covered for the rest of the year.”
