M&M Q3 results largely in-line with estimates, net profit up 33%

Mahindra and Mahindra Ltd. (M&M) reported its third quarter earnings on Wednesday, February 11, which were largely in-line with estimates.Its internals remain healthy, while the auto and farm mix was in the 67:33 proportion.

The automaker’s standalone net profit for the December quarter increased 32.6% to ₹3,931 crore from ₹2,964 crore in the previous year. It was slightly ahead of Street expectations of ₹3,904 crore.
Its standalone revenue from operations increased 26% to ₹38,517 crore, up from ₹30,538 crore in the third quarter of the previous year. However, it was below the Street estimate of ₹38,843 crore.Also read: One of the most-traded stocks today is up 46% in 10 sessions

Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 27% to ₹5,668 crore, compared with ₹4,468 crore a year earlier. This was slightly lower than the CNBC-TV18 poll estimate of ₹5,715 crore.

EBITDA margin stood at 14.7%, in line with Street expectations and marginally higher than 14.6% reported in the corresponding quarter last year.

Segment-wise, revenue from the auto climbed 27% YoY to ₹28,361 crore, compared with ₹22,410 crore a year ago. EBIT rose 24% YoY to ₹2,684 crore, while margins moderated to 9.5% from 10% last year. Auto volumes increased 23% YoY, supported by a 2.8% rise in realisations.The Farm Equipment segment reported a 25% YoY increase in revenue to ₹10,200 crore, up from ₹8,540 crore. EBIT rose 39% YoY to ₹2,061 crore, with margins expanding to 20% from 18% a year ago. Volumes in the segment grew 23% YoY, with realisations up 1.7% year-on-year.

Also read: HBL Engineering shares rise on ₹800 crore KAVACH order win

According to Mahindra, it retained leadership positions across key segments, ranking number one in SUVs with a 24.1% revenue market share, up 90 basis points YoY. It also remained the leader in LCVs (Light commercial vehicles) with a 51.9% market share, and in tractors with a 44% market share, even though tractor share was down 20 basis points YoY.

The company continued to lead the electric three-wheeler segment with a 38.6% market share. Management said that the recent launches, including XEV 9S and XUV 7XO, have received a positive response.

On a consolidated basis, Mahindra Group reported a 47% year-on-year rise in net profit to ₹4,674.7 crore, compared with ₹3,180.6 crore in Q3FY25. The profit growth was inclusive of the impact of labour code-related costs.

Consolidated revenue grew 24.4% YoY to ₹51,580 crore, marking the first time Mahindra & Mahindra has crossed the ₹50,000-crore revenue mark in a single quarter.

Following the result announcement, shares of the company fell nearly 3% from the day’s high. The stock was trading 0.2% up at ₹3,683.30 as of 1.01 pm, and it has gained 15.6% in the past six months.