Mahindra & Mahindra Ltd. reported a 32.6% year-on-year rise in standalone net profit for the October–December quarter at Rs 3,931 crore, compared with Rs 2,964 crore a year ago, marginally ahead of Bloomberg estimates of Rs 3,885 crore. Revenue from operations grew 26% to Rs 38,517 crore from Rs 30,538 crore, though it came in slightly below the Bloomberg estimate of Rs 38,926 crore.
Financial Performance
The company recorded Rs 375 crore loss under investments in subsidiaries and associates in its standalone results, primarily due to impairment at Mitsubishi Mahindra Agricultural Machinery (MAM) in Japan, where restructuring has been underway. The impairment was split between MAM in Japan and Erkunt Foundry in Turkey which is also a Mahindra entity, has been impacted by hyperinflationary pressures.
Ebitda rose 20.7% to Rs 5,293 crore from Rs 4,384 crore, missing the Bloomberg estimate of Rs 5,721 crore. Operating margin narrowed to 13.7% from 14.4% a year earlier, below Bloomberg expectations of 14.7%, reflecting input cost pressures and operating leverage. The company also provided Rs 98 crore as a one-time charge linked to the implementation of the New Labour Codes.
SUV Dominance
Auto volumes climbed 23% year-on-year to 3,02,238 units, while SUV revenue market share expanded 90 basis points to 24.1%. Tractor sales rose 23% to 1,49,567 units, although market share dipped 20 basis points to 44%. Management attributed the decline to supply constraints at the Rs facility during a festival-led demand spike rather than demand weakness.
Premiumisation continued to shape the revenue mix, with SUVs above four metres contributing around 60% of volumes but nearly 70% of revenue. The XUV7XO and Scorpio N saw strong traction, with 70–75% demand for the XUV7XO skewed toward diesel variants and higher trims.
Capacity bottlenecks at key plants capped further upside, though the company expects to unlock 3,000–5,000 additional ICE units per month through debottlenecking, along with 3,000–4,000 EV units this year. Dealer inventory remains tight at 15–20 days versus the normal 25–30 day range.