Mahindra & Mahindra (M&M) Q3 24/25 earnings summary

Executive summary

• Auto and farm segments achieved strong year-over-year growth in volumes, market share, and profitability, with consolidated PAT up 20% to Rs 3,181 crore in Q3 FY25.

• Board approved unaudited standalone and consolidated results for Q3 and nine months ended 31 Dec 2024, with results reviewed by statutory auditors and Audit Committee.

• Merger of Mahindra Heavy Engines, Mahindra Two Wheelers, and Trringo.com with Mahindra & Mahindra effective 1 April 2023; prior period comparatives restated.

• Auto and Farm businesses capitalized on market leadership, with new EV launches and margin expansion.

• Hospitality occupancy reached 84% with a 37% increase in average unit realization; real estate saw a major land acquisition in Bhandup.

Financial highlights

• Consolidated Q3 revenue grew 17% year-over-year to Rs 41,470 crore; standalone revenue up 20% to Rs 30,964 crore.

• Consolidated Q3 net profit after tax attributable to owners: Rs 3,180.58 crore; standalone PAT up 19% to Rs 2,964 crore.

• Auto segment Q3 revenue: Rs 23,391 crore, PBIT up 31% to Rs 2,006 crore; Farm segment Q3 revenue: Rs 9,537 crore, PBIT up 29% to Rs 1,350 crore.

• Tech Mahindra EBIT margin at 10.2%, up 480 bps year-over-year.

• Consolidated EBITDA and operating margins improved year-over-year; net profit margin for Q3 at 8.74%.

Outlook and guidance

• Tractor/farm industry expected to grow over 15% in Q4, supported by strong reservoir levels, crop progress, and MSP improvements.

• Continued focus on margin expansion and new product launches, especially in electric SUVs.

• EPS growth target of 15%-20% from FY21 onwards is being exceeded.