M&M Q2 Profit Jumps 18% to Rs 4,521 Crore, Beats Estimates
Mahindra & Mahindra reported strong second-quarter results with an 18% year-on-year rise in standalone net profit, reaching Rs 4,521 crore. This performance exceeded Bloomberg estimates of Rs 3,979 crore, driven by robust tractor and light commercial vehicle sales.
Key Takeaways
- Net profit: Rs 4,521 crore (up 18% YoY)
- Revenue: Rs 33,422 crore (up 21% YoY)
- Tractor volumes surged 32% to 122,936 units
- SUV volumes grew 7% to 146,000 units
- Operating margins improved to 15.3% from 14.7%
Quarterly Performance Highlights
The company’s revenue from operations climbed 21% to Rs 33,422 crore, though it slightly missed Street expectations of Rs 33,887 crore. The automotive major witnessed impressive growth across segments with light commercial vehicles rising 13% to 70,000 units.
Margin improvement to 15.3% was supported by better tractor realizations, stringent cost controls, and gains from investment sales. The industry faced demand challenges during half of the September quarter due to anticipated GST rationalization, leading to dealer overstocking.
“From a single-digit growth for the year we are revising our growth outlook to low double digits for the tractor segment for FY26 for the industry,” said Rajesh Jejurikar, executive director, M&M.
“We are, however, not revising our outlook for SUV volumes (growth) which will be in the high teens,” Jejurikar added.
Operational Challenges and EV Progress
September volume growth was affected by logistics constraints, including an industry-wide shortage of vehicle transport trailers. M&M’s current inventory for non-electric SUVs stands at 15 days, below company targets.
The company achieved significant electric vehicle penetration at 8.7% in the September quarter, outperforming the industry average of 7.4%. This marks substantial growth from 2.1% in Q2 FY25.
Future Outlook
Despite commodity cost pressures, effective cost management helped maintain profitability. With October recording the company’s highest-ever volumes due to festive demand and GST rate benefits, M&M aims to sustain momentum through the upcoming XEV 9S electric SUV launch in November.
