Mahindra & Mahindra Ltd. reported a 35% year-on-year rise in consolidated profit after tax (PAT) for the July-September quarter, reaching ₹3,171 crore, driven by strong sales in both the automotive and tractor segments. In the same period last year, the company posted a consolidated PAT of ₹2,348 crore. Consolidated revenue for the quarter was ₹37,924 crore, up 10% from ₹34,436 crore in Q2 of FY24.
On a standalone basis, net profit rose by 13.2%, totaling ₹3,840.88 crore, compared to ₹3,393.06 crore in the same quarter last year. Standalone revenue from operations increased by 12.94%, reaching ₹27,553.26 crore, up from ₹24,394.79 crore in Q2 FY24.
The automotive division saw a 15% growth in consolidated revenue, which reached ₹21,755.21 crore, up from ₹18,869.30 crore a year earlier. Profit in this segment surged by 40%, reaching ₹1,423 crore, up from ₹1,015 crore in Q2 FY24.
While the Farm Equipment segment saw a 2% dip in revenue to ₹8,194 crore, the segment’s consolidated PAT remained flat at ₹800 crore, reflecting challenges in international farm markets. However, the company achieved its highest-ever Q2 market share in the farm sector at 42.5%, with volumes rising 4% to 92,382 units, compared to 89,101 units in the same period last year.
The company has raised its tractor sales growth forecast for the current fiscal to 6-6.5%, up from the previous estimate of 5%, with expectations for double-digit growth in the second half. Anish Shah, Managing Director & CEO of Mahindra & Mahindra, commented, “Our businesses have delivered a strong operating performance this quarter. Both the automotive and farm segments continue to strengthen market leadership through increased market share and expanded margins.”
He also highlighted positive trends within the company’s financial services and IT divisions, noting that M&M Financial Services Ltd (MMFSL) maintained low asset quality risk with GS3 under 4%, and Tech Mahindra delivered a solid quarter, with long-term efforts focused on restoring past profitability.
The company achieved a 9% year-on-year growth in vehicle volumes, with 2.31 lakh vehicles sold, marking the highest-ever quarterly volumes. The utility vehicle segment saw particularly strong performance, with volumes reaching 1.36 lakh units during the quarter. The company’s SUV market share rose by 190 basis points to 21.9%, while SUV volumes increased by 18%. In the LCV segment, Mahindra held a 52.3% market share, up 260 basis points.
Rajesh Jejurikar, Executive Director for the Auto and Farm sector, said, “In Q2 FY25, we gained market share in both our automotive and tractor businesses, with SUV volumes increasing by 18%, maintaining our leadership in revenue market share.”
Jejurikar also stated that the forecast for tractor volume growth had been upgraded to 6-6.5% for FY25, driven by favorable factors such as strong monsoon rainfall, positive rural economic conditions, and increased government support for agriculture.
Amarjyoti Barua, Group CFO, added, “While our auto and farm sectors continue to perform strongly, this quarter also highlighted the growing strength of our services portfolio. We expect this trend to continue for the rest of the fiscal year as per our strategic focus.”
