Mahindra & Mahindra (M&M) reported a 7% year-on-year rise in standalone net profit to Rs 3,685 crore for the quarter ended June 30, beating Bloomberg estimates of Rs 3,569 crore. Revenue from operations rose to Rs 41,980 crore, ahead of the estimated Rs 41,802 crore, while EBITDA came in at Rs 5,756 crore, comfortably exceeding the street expectation of Rs 5,354 crore.
Auto and Farm Business Growth
The automotive business remained the key growth driver, with revenue rising 24.4% year-on-year to Rs 31,033 crore, while the farm equipment business grew 19.2% to Rs 10,947 crore. Total automotive sales increased 23% to 304,421 units, led by a 15% rise in utility vehicle sales to 175,000 units. Tractor volumes grew 18% to 158,041 units.
The farm equipment business posted a 15% increase in first-quarter profit to Rs 1,520 crore, although margins in the core tractor business declined 150 basis points to 19.2% due to higher steel and rubber prices. The company retained its full-year tractor growth guidance of around 5%.
Despite inflation in key commodities such as steel, aluminium, copper and rubber, Mahindra maintained its FY27 outlook, expecting SUV volumes to grow in the high teens and tractor sales in the mid-single digits.
“There are positives and negatives. Commodity is one dis-enabler, we’ve taken prices increases, but there are other enablers which are driving demand. Keeping all of that in mind, we believe that at this point of time, the outlook that we had put out two and a half months back is what we’ve stayed with,” Rajesh Jejurikar, Executive Director & CEO, Auto and Farm Sectors, said.
Ramping Up SUV
Confident of sustained demand, the company has also unveiled an aggressive manufacturing expansion plan that will nearly double monthly vehicle production capacity between FY26 and FY31 to support future SUV and EV launches.
“We are on track to hit all our near-term cmilestones while simultaneously investing in future capacity across multiple plants. We had said that we will be at 60,000 per month exit at the end of September this year. We are on track for that,” Jejurikar said.
For its ICE SUV portfolio, Mahindra will raise monthly capacity from 54,000 units at the end of FY25 to 56,500 units by FY26-end and 60,000 units in the first half of FY27. Capacity will increase further to 70,000 units in the second half of FY27, with 10,000 units reserved for new models due in FY28.
BEV capacity will increase from 5,000 units a month at FY25-end to 8,000 units by FY26 and remain at that level through the first half of FY27 before doubling to 16,000 units in the second half of FY27. Half of the incremental EV capacity has been earmarked for new launches.
Overall monthly vehicle production capacity will rise from 59,000 units at FY25-end to 64,500 units by FY26, 68,000 units in the first half of FY27 and 82,000 units by the second half of FY27, with 14,000 units reserved for FY28 product launches.
Beyond FY27, Mahindra plans to add 10,000 units of monthly capacity for its NU_IQ platform at Chakan and set up a greenfield plant at Nagpur. The Nagpur facility will add 20,000 units a month in the first half of FY30 and another 20,000 units by FY31-end, taking the company’s manufacturing capacity to nearly double over the period.
“At this time, we are not giving out an exact number for capex, but it will be a sizable investment. Not all the capex is from Nagpur, some is from Chakan expansion and are already into the current capex,” Jejurikar said.