Mahindra & Mahindra (M&M) Q1 26/27 earnings summary

Executive summary

• Consolidated profit after tax rose 34% year-over-year to ₹5,455 crore, with ROE at 23% and EPS up to ₹48.80, driven by strong performances across Auto, Farm, Finance, Tech, and Growth Gems.

• Revenue increased 28% year-over-year to ₹58,188 crore, with all major segments contributing to growth.

• Growth Gems profits tripled, with real estate and logistics showing significant turnarounds.

• Resilience demonstrated despite 400-500bps commodity price headwinds and global uncertainties.

• A significant one-time gain from the sale of an associate was recognised in Q1 FY27.

Financial highlights

• Auto segment revenue grew 32% to ₹34,387 crore and PAT by 21% to ₹2,129 crore; SUV volumes up 15%, LCV up 20%.

• Farm segment revenue reached ₹12,501 crore, volume up 18%, PAT up 15%, exports up 15%.

• Mahindra Finance PAT up 78% year-over-year, AUM up 13%, disbursements up 22%, NIM at 7.3%, ROA at 2.4%.

• Tech Mahindra EBIT margin reached 14.4%, free cash flow up 94%, large deal wins with TCV $1,078mn.

• Growth Gems revenue up 39%, real estate GDV at INR 50,000 crore, logistics posted highest-ever quarterly profit.

Outlook and guidance

• Plans to double SUV/auto capacity by FY31, accelerate EV volume growth, and launch new INGLO EV platform.

• Farm Division to focus on product launches, export acceleration, and addressing international weak spots.

• Mahindra Finance targets 70/30 wheels/non-wheels mix by 2031, aiming for INR 3 lakh crore book, and diversifying into mortgage, SME, and insurance.

• Cautiously optimistic on margin improvement in Auto; Farm margins to remain under pressure due to commodity inflation.

• The company is monitoring the impact of new Environment Protection (End-of-Life Vehicles) Rules, 2025, with financial implications yet to be determined.