Mahindra & Mahindra Q2 Profit Jumps 25% to ₹4,588 Crore on Auto Growth

Mahindra & Mahindra (M&M) announced a significant 25 percent year-on-year increase in its consolidated profit after tax (PAT), reaching ₹4,588 crore for the second quarter of fiscal year 2027. This growth was largely fueled by robust performance in the automobile segment alongside improved earnings in its financial services and technology divisions.

The company’s consolidated revenue from operations surged 25 percent to ₹57,553 crore during the July to September quarter, compared to ₹46,106 crore recorded in the same period last year. In the previous year’s quarter, consolidated PAT was ₹3,673 crore.

M&M’s automobile business emerged as the key contributor to this growth, with consolidated PAT soaring 55 percent to ₹2,388 crore, while revenues climbed 39 percent to ₹37,756 crore. This was driven by strong consumer demand and higher vehicle sales volumes.

Conversely, the farm equipment division experienced a setback. Revenue and profitability both slipped, influenced by the shifting of the festive season which impacted sales timing. The farm segment’s consolidated PAT decreased 9 percent to ₹1,053 crore and revenue fell 6 percent to ₹9,572 crore. Despite this, the services business saw an 18 percent rise in consolidated PAT to ₹1,147 crore, with revenues also increasing 18 percent to ₹11,821 crore.

Anish Shah, group CEO and managing director of M&M, highlighted the resilient performance across the group. He stated, “Our Q2 FY27 consolidated PAT growth of 25 percent reflects the resilience of our group and underlines the disciplined execution across businesses. Auto continued to grow on the back of strong consumer demand, while Farm experienced a marginal decline on account of the festive season shift. Mahindra Finance maintained its growth trajectory, TechM displayed acceleration in its transformation journey, and our Growth Gems continued their momentum. Despite the uneven macroeconomic environment, the group remains focused on laying the foundation for consistent profitable growth.”

The automobile segment reported a 26 percent increase in volumes year-on-year, with total sales reaching 330,896 vehicles during the quarter, including those from subsidiaries. Utility vehicle sales were approximately 183,000 units, with SUV sales growing 26 percent compared to the previous year. The company maintained its leadership position in the SUV market, capturing 24.3 percent of the revenue market share. Its electric SUV portfolio further strengthened, achieving a 30.1 percent revenue market share during the quarter.

In the light commercial vehicle category under 3.5 tonnes, M&M held a dominant 52.3 percent market share. The company’s electric three-wheeler segment also performed well, securing a 36.2 percent market share. Standalone profit before interest and tax (PBIT) for the automobile business rose 15 percent to ₹2,614 crore. The standalone PBIT margin was 7.7 percent, but excluding the effects of electric SUV contract manufacturing, it was 9.1 percent. This represented a decline of 120 basis points year-on-year but an improvement of 80 basis points from the previous quarter.

Rajesh Jejurikar, executive director and CEO of M&M’s Auto and Farm Sector, commented on the performance, saying, “The automobile business delivered a strong performance, with SUV volumes rising 26 percent and the company retaining its leadership in revenue market share. Auto consolidated PBIT margin grew to 8.8 percent, 110 basis points up quarter-on-quarter, and Farm consolidated PBIT margin grew 20 basis points quarter-on-quarter despite significant hikes in commodity prices.”

The farm equipment division faced challenges as tractor sales declined 6 percent to 116,027 units from 122,936 units a year ago. Nevertheless, M&M retained its commanding position in the domestic tractor market with a 41.5 percent share. The farm business’s standalone PBIT was ₹1,441 crore, but its margin dropped 300 basis points year-on-year to 16.8 percent, reflecting margin pressures. The company attributed the volume decline to the festive season shift and noted the impact of rising commodity prices. However, the consolidated farm PBIT margin showed a slight sequential improvement of 20 basis points, suggesting some recovery despite cost pressures.

Other group companies contributed positively as well. Mahindra Finance saw a 15 percent growth in assets under management (AUM), with PAT attributable to M&M rising 61 percent. The gross non-performing assets (Stage 3 assets) stood at 3.42 percent. Tech Mahindra achieved a 33 percent increase in PAT attributable to M&M and improved its EBIT margin by 260 basis points year-on-year to 14.8 percent, signaling progress in its business transformation.

Several other group entities showed growth during the quarter. Mahindra Lifespaces posted residential pre-sales of ₹1,100 crore, up 41 percent, and added projects with a gross development value of ₹1,500 crore. Mahindra Holidays improved its occupancy rate by 220 basis points to 76 percent, with a room inventory of 5,762 keys. Mahindra Logistics recorded a 24 percent revenue increase to ₹2,095 crore and turned PAT-positive on the measure attributable to M&M. Additionally, the Growth Gems businesses collectively tripled their PAT.

Amarjyoti Barua, group chief financial officer at M&M, remarked on the quarter’s results, noting, “The quarter reflected the strength of the group’s diversified portfolio despite commodity and geopolitical headwinds. The robust balance sheet and cash generation also provides us the flexibility to invest in future opportunities and deliver sustainable value.”

This quarterly report highlights M&M’s ability to expand its core automobile business while managing challenges in the farm equipment sector. The company’s diversified portfolio across finance, technology, and other sectors supports stable growth even amid economic uncertainties. As India’s automotive market continues to evolve with increasing demand for electric vehicles and consumer preferences shifting, M&M’s focus on innovation and market leadership positions it well for future developments.