Mahindra & Mahindra (M&M) Q2 24/25 earnings summary

Executive summary

• Consolidated PAT rose 35% year-over-year to ₹3,171 crore in Q2 FY25, with revenue up 10% to nearly ₹38,000 crore and strong growth across Auto, Farm, Services, and TechM segments.

• H1 FY25 consolidated revenue was ₹74,699.10 crore, up from ₹67,687.64 crore year-over-year, and PAT attributable to owners was ₹6,453.35 crore.

• Auto segment market share rose to 21.9%, and farm segment market share increased by nearly 1 percentage point.

• ROE reached 18.9% for the quarter and YTD, maintaining above the 18% target.

• Basic EPS for H1 FY25 stood at ₹57.87, compared to ₹52.57 in H1 FY24.

Financial highlights

• Auto segment PBIT margin improved to 9.5% (up 140 bps YoY); Farm segment PBIT margin up to 17.5% (up 150 bps YoY).

• Services segment PAT increased 1.8x; Tech Mahindra EBIT margin expanded 490 bps; MMFSL AUM up 20%, PAT up 36%.

• Operating margin for H1 FY25 was 13.79%, and net profit margin was 9.19%.

• Cash flow from operations for H1 FY25 was ₹10,128.93 crore.

• Standalone PAT up 13% year-over-year to ₹3,841 crore.

Outlook and guidance

• Auto segment expects mid to high teens growth in volumes for the full year.

• H2 tractor industry expected to grow in double digits, supported by surplus rainfall, strong reservoir levels, and increased rural development spending.

• Management highlighted continued growth momentum in automotive and services, with a focus on capital efficiency and margin improvement.

• Temporary margin pressure anticipated in Q3 due to launch expenses, but not expected to impact long-term margins.

• Services segment, especially Mahindra Finance, expected to benefit from declining credit costs in the second half.