Mahindra & Mahindra (M&M) Q3 25/26 earnings summary

Executive summary

• Achieved record consolidated revenue, surpassing INR 52,100 crore for Q3 FY2026, up 25.7% year-over-year, with strong performance across all business segments and significant contributions from group companies.

• Operating PAT rose 66% year-over-year, while reported PAT increased 47% to INR 4,675 crore, with differences due to labor code impact and a one-time reserve release in Mahindra Finance last year.

• ROE annualized at 20.1%, reflecting consistent delivery on financial commitments.

• Volume and margin growth were robust in both auto and farm businesses, with volumes up 23% in each.

• Breakthrough performances included Mahindra Finance's pivot to growth, Lifespaces' 5x profit increase, and logistics achieving its first profitable quarter in 11 quarters.

Financial highlights

• Consolidated revenue up 26% year-over-year; operating profit up 66%, or 54% excluding one-time items.

• Auto segment operating profit up 42%, Tech Mahindra up 35%, Lifespaces up 5x, Logistics up 2x, Mahindra Finance up 97%, Farm up 7% (impacted by international impairments).

• Auto margins increased by 90 basis points; farm margins up 240 basis points domestically.

• Year-to-date profit growth at 38%, exceeding initial expectations.

• Services segment PAT more than doubled to ₹1,637 crore, driven by strong performance in Mahindra Finance and Lifespaces.

Outlook and guidance

• Management expects continued strong growth, with robust demand in auto and farm segments and a positive outlook for the remainder of the year.

• Capacity expansions planned for ICE and EVs through FY27 and FY28, with new platforms and greenfield facilities in the pipeline.

• Mahindra Finance to focus on responsible growth after strengthening asset quality and controls.

• Tech Mahindra on track to achieve a 15% EBIT margin by FY27, after which it will pivot to growth.