Mahindra & Mahindra (M&M) Q1 24/25 earnings summary

Executive summary

• Consolidated profit after tax rose 20% year-over-year to INR 3,283 crore, excluding prior year one-time gains from KG Mobility and MCIE sale.

• Strong operating performance in Auto and Farm segments, with significant market share gains and margin expansion; Auto PAT up 35%, Farm up 4% in a challenging market.

• Mahindra Finance and Tech M showed early signs of turnaround, with Mahindra Finance profit up 37% and asset growth of 23%.

• ROE reached 19.4% annualized for the quarter.

• Standalone revenue from operations reached INR 27,133 crore, with standalone PAT up 23% to INR 2,613 crore.

Financial highlights

• Consolidated revenue increased 11% year-over-year to INR 37,218 crore in Q1 FY25; PAT reached INR 3,283 crore, up 20% excluding one-time gains.

• Auto segment revenue up 16% to INR 19,776 crore; Farm segment revenue nearly flat at INR 9,711 crore.

• Auto margins expanded by 180 bps to 9.5%; Farm margins at 18.5%; consolidated operating margin improved to 14.21%.

• Mahindra Finance PAT at INR 497 crore; Tech M up 23% year-over-year.

• Hospitality segment achieved 90% occupancy and 31% increase in average unit realization.

Outlook and guidance

• Auto segment maintains mid- to high-teens growth target for FY 2025, supported by new launches and capacity expansion.

• Tractor segment outlook remains at 5% growth, with potential upside if favorable monsoon and rural trends persist.

• Management expects continued margin strength, with flexibility to adjust pricing and promotions as needed.

• Tech Mahindra turnaround underway, with margin improvement as a key focus; demand outlook remains mixed.

• Merger of Mahindra Heavy Engines, Mahindra Two Wheelers, and Trringo.com expected to enhance scale and synergies.