Mahindra & Mahindra Q2 Results: Standalone net profit up 13% to Rs 3,841 crore on strong SUV sales

Mahindra & Mahindra Ltd beat Street expectations with a 13% year-on-year rise in standalone net profit helped by strong sales of sport-utility vehicles, pickups, three-wheelers and trucks.

India’s largest tractor maker also raised its full-year guidance for the tractor market to 6-6.8% from the earlier 3-5% amid positive cues from the agriculture sector and rural markets. This follows muted tractor sales in the fiscal second quarter.

Net profit at the manufacturer of XUV 7OO and Scorpio SUVs rose to Rs3841 crore from Rs3393 crore a year ago. Revenue grew 12% to Rs28,919 crore from Rs25,762 crore. Profit surpassed the Rs3580 crore estimate of Bloomberg.


M&M is also holding on to its guidance of “high teens” growth for SUV sales for the remainder of this fiscal year, outpacing the broader market which is expected to advance at 3-5% in FY25.

“Our businesses have delivered a solid operating performance this quarter,” said Anish Shah, MD, M&M.

Mahindra’s vehicle sales, including its last mile mobility business, rose to a record 231,038 units from 212,078 units a year earlier. It helped offset muted tractor sales, which rose by 4% to 92,382 units.

“We are seeing green shoots in the tractor industry and expect the tractor market to grow at 13-15% in the second half of the fiscal,” said Rajesh Jejurikar, executive director, farm equipment and automotive sectors at M&M.

Tractor demand will be backed by abundant monsoons, strong reservoir levels, higher Kharif output marked by significant pickup of mandi arrivals in the second half of October, Jejurikar said. He added that robust rural spending by the government in August and September is expected to continue in the fiscal second half.

M&M however pointed to headwinds faced by its subsidiaries in the US and Turkey. The US tractor market, where Mahindra is a major player in the below 100 horsepower segment, has slowed sharply with sales volume falling to 180,000 from 300,000 over the last three years, he said. “(We) will take a critical look at the international subsidiaries of the FES (Farm Equipment Sector),” said Shah.

Consolidated earnings

Consolidated net profit at the tractor-to-technology group jumped 35% for the quarter to Rs3,171 crore from Rs2,348 crore a year earlier. Revenue from operations rose 10% to Rs37,924 crore from Rs34,436 crore.

In addition to strong performances by the farm equipment and auto sectors, a turnaround in Mahindra Financial Services (MFSL) and Tech Mahindra also helped lift quarterly earnings. Net profit also got a one-time boost from the sale of land in a Mumbai suburb. Excluding the impact, the profit would have risen 22%.

“The turnaround is on track,” said Shah. “Tech Mahindra has seen a good traction from BFSI (banking, financial and insurance) sectors but more grounds are remaining to be covered,” he said.

Capacity ramp up

Meanwhile, to feed the fast paced demand for its SUVs, the company has increased it's capacity by 10 percentage points since FY24, now reaching 54,000 units per month, Jejurikar informed.

Mahindra plans to expand the capacity by another 10,000 units per month in the coming quarters, he said.

M&M is gearing up to launch its electric-vehicle (EV) lineup on November 26. In response to a query on dealer inventory, he said it currently remains under 30 days.