Mahindra Group Posts 38.5% Rise in Profit to ₹5,021.47 Cr, Boosted by Auto, Farm Segments

Mahindra & Mahindra Ltd on Wednesday reported a 38.54 per cent growth year-on-year in consolidated profit after tax (PAT) to Rs 5,021.47 crore in the third quarter over the year-ago period, driven mainly by strong performance of the auto and farm sectors.

The company had delivered a PAT of Rs 3,624.48 crore in the December quarter of FY25, Mahindra & Mahindra Ltd (M&M) said.

Consolidated revenue from operations for the reporting period stood at Rs 51,579.95 crore as compared to Rs 41,464.98 crore in Q3FY25.

This is the first time M&M has crossed Rs 50,000-crore revenue on a consolidated basis, the company said.

M& M Group CEO & Managing Director Anish Shah, during the post-earnings media briefing, sounded confident that the India-EU FTA will have no bearing on the company's domestic SUV volumes unless the economy is fully opened.

He also said that the company is seeing very "positive" momentum in auto and e-commerce while the hospitality business has had foreign exchange impact and added that "all our businesses have done exceedingly well." Total expenses in the quarter under review were higher at Rs 41,464.98 crore as compared to Rs 37,096.65 crore in the same period a year ago, the company said.

In the quarter, the group incurred an exceptional outgo of Rs 292.94 crore on account of the new Labour Codes, the filing said.

Auto segment posted quarterly volume of 3.02 lakh units, up 23 per cent from the same period last fiscal, M&M said, adding the farm sector volume was at 1.5 lakh units, a growth of 23 per cent from the corresponding quarter a year ago.

Among the company's growth gems, he said, the logistics business became profitable after 11 quarters while the lifespaces business grew fivefold in PAT, he said.

A solid operating performance across the group in Q3 FY26 reflected the group's strong focus on growth coupled with disciplined execution, he said.

"Auto & farm has maintained its leadership position on the back of steady customer demand, strong product acceptance and unwavering focus on operational excellence," he said, adding TechM continues to make meaningful progress," Shah added.

Mahindra Finance delivered another solid quarter with meaningful PAT growth while maintaining strong asset quality, he said, adding "we are especially pleased to see breakout performance from two of our growth gems, Mahindra Logistics and Mahindra Lifespaces".

M&M Executive Director & CEO (Auto and Farm Sector), Rajesh Jejurikar said, "We have achieved a 90 basis points YoY increase in SUV revenue share and 10 bps YoY increase in LCV ( less than 3.5 tonnes) market share in Q3." Tractor business gained 20 bps YoY to reach 44.1 per cent share for YTD.

"Our Q3 consolidated results reflect the strength and depth of our diversified portfolio. Our services businesses continue to increase their contribution to the overall results," said Amarjyoti Barua, Group Chief Financial Officer, said.

"There has been a lot of conversation around how this will impact us. But there are various European models in India today. And take any of those models, I won't name specific ones, that OEM cannot make them in EU, pay the shipping cost to send it here, bear the inventory cost for that time period and have it come to India cheaper than what they already have here.

“ So, it doesn't impact us from a comparative standpoint at all," Shah said on the impact of the India-EU FTA, the negotiations on which between the two sides got concluded on January 27.

On the passenger vehicle demand outlook, Jejurikar said, "The quarter overall demand outlook right now seems very robust and we would expect to see high growth rates for the industry as well for us." He, however, said that everyone is going to be constrained by capacity, as the demand right now is probably stronger than the way supply is able to ramp up.

He said that the company plans to add 3000- to 4000 of EV capacity which increases stated capacity for both electric vehicles and vehicles powered by internal combustion engines in the next fiscal year by about 6,000-- to 7000 a month.

"We were not fully utilizing the capacity of 7XO which we hope to do so that there is another upside of 3000 (capacity) based on the demand that we are seeing of 7XO," he added.

On the new integrated Nagpur facility, Jejurikar said that the tractor capacity will move up in a phased manner to about 100,000 tractors.

"We have set this up (the integrated plant) in a way that we will make tractors as well. It will have its own plant within the same land plot of over 1000 acres that we are buying between 1000 and 1500. So tractors capacity will move up in a phased manner to about 100,000 tractors. We also will make a new portfolio of SUVs there which will move up to 500,000 over a period of time," he said.

Last week, the company announced plans to set up an integrated manufacturing facility in Nagpur (Maharashtra) with an investment of Rs 15000 crore over a 10-year period.

"We will design the plant in a way that capacities can be set up in a phased and modular way. It never makes sense to put all your capacity that you are expecting over a period of time up on the same day. It will be designed in a way that we can modularly increase it," he said.