M&M Q2 Results: Profit rises 25% YoY to Rs 4,588 crore, revenue grows 25%
M&M Q2 Results: Revenue from operations grew 25.4% YoY to Rs 57,514.98 crore in Q2FY27, against Rs 45,885.40 crore reported in the year-ago period.
By Kumar Gaurav, ETMarkets.com | Updated:
ETMarkets.com
Mahindra & Mahindra (M&M) on Thursday reported a 25% year-on-year (YoY) increase in consolidated net profit to Rs 4,587.88 crore for the September quarter, compared with Rs 3,673.32 crore in the year-ago period.
Revenue from operations grew 25.4% YoY to Rs 57,514.98 crore in Q2FY27, against Rs 45,885.40 crore reported in the year-ago period.
Total expenses rose 25.9% YoY to Rs 51,845.48 crore during the quarter, compared with Rs 41,192.50 crore in Q2FY26.
On a standalone basis, M&M reported a 12.15% YoY increase in net profit to Rs 5,102 crore in Q2FY27, compared with Rs 4,521 crore in the corresponding quarter of the previous fiscal.
Revenue rose 27.1% YoY to Rs 42,477 crore during the quarter, against Rs 33,422 crore reported in Q2FY26.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 2.1% YoY to Rs 4,912 crore in Q2FY27, compared with Rs 4,810 crore in the year-ago quarter.
However, EBITDA margin contracted by 280 basis points to 11.6% from 14.4% in Q2FY26.
M&M said its businesses continued to deliver growth, supported by proactive measures to navigate macroeconomic volatility.
Segment-wise performance
The automotive business continued to be the key growth driver, with quarterly volumes, including sales by LMM and MEAL, rising 26% year-on-year to 3.31 lakh units. Utility vehicle (UV) volumes stood at 1.83 lakh units. The SUV revenue market share stood at 24.3% in Q2FY27.
The automotive segment's consolidated revenue increased 39% YoY to Rs 37,756 crore, while profit after tax (PAT) rose 55% to Rs 2,388 crore. Standalone profit before interest and tax (PBIT) stood at Rs 2,614 crore, up 15% from the year-ago period. The standalone PBIT margin was 7.7%, or 9.1% excluding eSUV CMA.
The farm equipment business reported volumes of 1.16 lakh units, with its market share at 41.5% during the quarter. Consolidated revenue declined 6% YoY to Rs 9,572 crore, while PAT fell 9% to Rs 1,053 crore. Standalone PBIT stood at Rs 1,441 crore, with a PBIT margin of 16.8%, down 300 basis points.
In the services business, Mahindra Finance reported 15% growth in assets under management (AUM), while its PAT increased 61%. Tech Mahindra reported an EBIT margin of 14.8%, with PAT rising 33%.
Mahindra Lifespace Developers recorded residential pre-sales of Rs 1,100 crore, up 41%, and added gross development value (GDV) of Rs 1,500 crore. Mahindra Holidays reported 5,762 room keys and an occupancy rate of 76%, up 220 basis points.
Mahindra Logistics reported revenue of Rs 2,095 crore, marking a 24% YoY increase, while its PAT turned positive and grew threefold.
Overall, the consolidated services business reported revenue of Rs 11,821 crore, up 18% YoY, while PAT increased 18% to Rs 1,147 crore.
Management commentary
Commenting on the quarterly performance, Anish Shah, Group CEO and Managing Director of M&M, said consolidated PAT growth of 25% reflected the resilience of the group and disciplined execution across its businesses.
He said the automotive business continued to grow on the back of strong consumer demand, while the farm business witnessed a marginal decline due to the shift in the festive season. Mahindra Finance maintained its growth trajectory, Tech Mahindra accelerated its transformation journey, and the Growth Gems portfolio continued to build momentum.
"Despite the uneven macroeconomic environment, the group remains focused on laying the foundation for consistent profitable growth," Shah said.
Rajesh Jejurikar, Executive Director and CEO (Auto and Farm Sector) at M&M, said the automotive business delivered a strong performance, with SUV volumes growing 26% YoY and the company retaining its leadership position in revenue market share.
He added that the electric vehicle portfolio continued to gain traction, with M&M maintaining its number one position in EV revenue market share in the first half of the year. The automotive consolidated PBIT margin increased to 8.8%, up 110 basis points sequentially, while the farm business's consolidated PBIT margin improved 20 basis points QoQ despite a significant increase in commodity prices.
Amarjyoti Barua, Group Chief Financial Officer of M&M, said the quarterly performance reflected the strength of the company's diversified portfolio, with businesses demonstrating operational discipline and resilience despite commodity and geopolitical headwinds.
He added that the group's strong balance sheet and cash generation provided it with the flexibility to invest in future opportunities and deliver sustainable value.
Management change
Separately, M&M announced a senior management change, with Shuchi Suri, Executive Vice-President, Mahindra Experiences, set to transition to the role of Chief Sales and Marketing Officer of the automotive business with effect from April 1, 2027.
The company said Suri would cease to be a senior management personnel following the transition. The disclosure was made pursuant to Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations.
M&M share price
M&M shares rose 6.18% following the announcement of its September quarter results, hitting an intraday high of Rs 3,145 apiece on the NSE, compared with the previous close of Rs 2,961.90.
The stock subsequently pared some of its gains but continued to trade higher. At 1:20 PM, M&M shares were trading at Rs 3,103.20 apiece, according to the figures provided. Despite the day's gains, the stock has declined nearly 17% so far this year, according to NSE data.
At the current market price, M&M commanded a market capitalisation of around Rs 3,87,110 crore.
Revenue from operations grew 25.4% YoY to Rs 57,514.98 crore in Q2FY27, against Rs 45,885.40 crore reported in the year-ago period.
Total expenses rose 25.9% YoY to Rs 51,845.48 crore during the quarter, compared with Rs 41,192.50 crore in Q2FY26.
On a standalone basis, M&M reported a 12.15% YoY increase in net profit to Rs 5,102 crore in Q2FY27, compared with Rs 4,521 crore in the corresponding quarter of the previous fiscal.
Revenue rose 27.1% YoY to Rs 42,477 crore during the quarter, against Rs 33,422 crore reported in Q2FY26.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 2.1% YoY to Rs 4,912 crore in Q2FY27, compared with Rs 4,810 crore in the year-ago quarter.
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However, EBITDA margin contracted by 280 basis points to 11.6% from 14.4% in Q2FY26.
M&M said its businesses continued to deliver growth, supported by proactive measures to navigate macroeconomic volatility.
Segment-wise performance
The automotive business continued to be the key growth driver, with quarterly volumes, including sales by LMM and MEAL, rising 26% year-on-year to 3.31 lakh units. Utility vehicle (UV) volumes stood at 1.83 lakh units. The SUV revenue market share stood at 24.3% in Q2FY27.
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The automotive segment's consolidated revenue increased 39% YoY to Rs 37,756 crore, while profit after tax (PAT) rose 55% to Rs 2,388 crore. Standalone profit before interest and tax (PBIT) stood at Rs 2,614 crore, up 15% from the year-ago period. The standalone PBIT margin was 7.7%, or 9.1% excluding eSUV CMA.
The farm equipment business reported volumes of 1.16 lakh units, with its market share at 41.5% during the quarter. Consolidated revenue declined 6% YoY to Rs 9,572 crore, while PAT fell 9% to Rs 1,053 crore. Standalone PBIT stood at Rs 1,441 crore, with a PBIT margin of 16.8%, down 300 basis points.
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In the services business, Mahindra Finance reported 15% growth in assets under management (AUM), while its PAT increased 61%. Tech Mahindra reported an EBIT margin of 14.8%, with PAT rising 33%.
Mahindra Lifespace Developers recorded residential pre-sales of Rs 1,100 crore, up 41%, and added gross development value (GDV) of Rs 1,500 crore. Mahindra Holidays reported 5,762 room keys and an occupancy rate of 76%, up 220 basis points.
Mahindra Logistics reported revenue of Rs 2,095 crore, marking a 24% YoY increase, while its PAT turned positive and grew threefold.
Overall, the consolidated services business reported revenue of Rs 11,821 crore, up 18% YoY, while PAT increased 18% to Rs 1,147 crore.
Management commentary
Commenting on the quarterly performance, Anish Shah, Group CEO and Managing Director of M&M, said consolidated PAT growth of 25% reflected the resilience of the group and disciplined execution across its businesses.
He said the automotive business continued to grow on the back of strong consumer demand, while the farm business witnessed a marginal decline due to the shift in the festive season. Mahindra Finance maintained its growth trajectory, Tech Mahindra accelerated its transformation journey, and the Growth Gems portfolio continued to build momentum.
"Despite the uneven macroeconomic environment, the group remains focused on laying the foundation for consistent profitable growth," Shah said.
Rajesh Jejurikar, Executive Director and CEO (Auto and Farm Sector) at M&M, said the automotive business delivered a strong performance, with SUV volumes growing 26% YoY and the company retaining its leadership position in revenue market share.
He added that the electric vehicle portfolio continued to gain traction, with M&M maintaining its number one position in EV revenue market share in the first half of the year. The automotive consolidated PBIT margin increased to 8.8%, up 110 basis points sequentially, while the farm business's consolidated PBIT margin improved 20 basis points QoQ despite a significant increase in commodity prices.
Amarjyoti Barua, Group Chief Financial Officer of M&M, said the quarterly performance reflected the strength of the company's diversified portfolio, with businesses demonstrating operational discipline and resilience despite commodity and geopolitical headwinds.
He added that the group's strong balance sheet and cash generation provided it with the flexibility to invest in future opportunities and deliver sustainable value.
Management change
Separately, M&M announced a senior management change, with Shuchi Suri, Executive Vice-President, Mahindra Experiences, set to transition to the role of Chief Sales and Marketing Officer of the automotive business with effect from April 1, 2027.
The company said Suri would cease to be a senior management personnel following the transition. The disclosure was made pursuant to Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations.
M&M share price
M&M shares rose 6.18% following the announcement of its September quarter results, hitting an intraday high of Rs 3,145 apiece on the NSE, compared with the previous close of Rs 2,961.90.
The stock subsequently pared some of its gains but continued to trade higher. At 1:20 PM, M&M shares were trading at Rs 3,103.20 apiece, according to the figures provided. Despite the day's gains, the stock has declined nearly 17% so far this year, according to NSE data.
At the current market price, M&M commanded a market capitalisation of around Rs 3,87,110 crore.
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