Mahindra & Mahindra (M&M) Q1 25/26 earnings summary

Executive summary

• Consolidated profit after tax rose 24% year-over-year to ₹4,083 crore, with ROE reaching 20.6% for the first time, surpassing the 18% target.

• Revenue increased 22% year-over-year to ₹45,529 crore, with broad-based growth across auto, farm, financial services, and other segments.

• Strong market share gains in SUVs and tractors, with significant margin improvements in core businesses.

• Growth Gems businesses and Tech Mahindra contributed to overall profitability and margin recovery.

• Cash generation remained robust, supporting investments and maintaining a strong cash balance despite rights issues.

Financial highlights

• Consolidated revenue up 22% and profit after tax up 24% to ₹4,083 crore compared to the same quarter last year.

• Auto segment revenue up 31% to ₹25,999 crore; Farm segment revenue up 12% to ₹10,892 crore.

• EPS for the quarter at ₹36.4, a significant increase from the prior year.

• Assets under management in financial services up 15% year-over-year.

• Standalone PAT up 32% to ₹3,450 crore; standalone revenue up 26% to ₹34,143 crore.

Outlook and guidance

• SUV growth guidance maintained at mid to high teens, supported by new electric SUV launches and product refreshes.

• Tech Mahindra targets EBIT margin of 15% by FY27, with recovery on track at 11.1% in Q1.

• MMFSL asset quality remains in line with commitments, with AUM up 15% year-over-year.

• The company is monitoring the impact of new Environment Protection (End-of-Life Vehicles) Rules, 2025.

• Expectation of continued strong performance, with focus on margin management and incremental growth in farm machinery.