Mahindra & Mahindra: A 'Delightful' Q2 FY26 Performance Driven by Diversified Growth

Mahindra & Mahindra (M&M) has reported a robust and diversified performance for the second quarter of Fiscal Year 2026 (Q2 FY26), with management expressing 'delight' at the results. The company's consolidated revenue for Q2 FY26 stood at an impressive 46,106 crore, marking a 22% year-over-year growth. This strong top-line expansion translated into a consolidated Profit After Tax (PAT) of 3,673 crore, reflecting a significant 28% increase after adjusting for one-off items. The annualized Return on Equity (ROE) reached 19.4%, underscoring the company's efficient capital utilization and strong operational execution across its diverse portfolio.

Segmental Strength: Farm, Auto, and Financial Services Lead the Way

The stellar performance was broad-based, with key segments contributing significantly to the overall growth. The Farm sector emerged as a standout performer, delivering an exceptional 54% growth in operating profit. This was supported by strong execution on the ground, maintaining a robust 43% market share, and a notable 30% increase in farm machinery revenue to 330 crore. The core tractor PBIT (Profit Before Interest and Tax) reached an impressive 20.6% for the quarter, reflecting strong margin performance.

Financial Summary Table (Q2 FY26)

(Note: PAT figures are adjusted for one-off items where applicable. Mahindra Finance growth is for operating profit.)

The Auto sector, despite facing complexities due to the GST transition which led to some delivery postponements, still posted a commendable 14% PAT growth. The company maintained its market leadership, securing the #1 position in SUV revenue market share and holding a dominant 53.2% market share in the Light Commercial Vehicle (LCV) <3.5T segment. New product introductions, such as the updated Bolero range and the Thar 3-door refresh, received strong market responses. The Electric Vehicle (EV) portfolio also showed promising traction, with e-SUV penetration reaching 8.7% and the company being #1 in EV Revenue Market Share in H1 FY26.

Mahindra Finance delivered a 'breakout quarter,' achieving a 45% growth in operating profit. This was attributed to significant improvements in asset quality, with Gross Non-Performing Assets (GNPA) maintained below 4%, enhanced controls, and successful digital transformation through the 'Udan stack.' Tech Mahindra also remained on track, with profits up 35%, driven by gains in BFSI, manufacturing, and retail, alongside accelerated AI efforts and the launch of 'Orion.'

Strategic Initiatives and Future Outlook

M&M's 'Growth Gems' are also accelerating. The Logistics business achieved its first positive gross margin quarter for the express segment, with revenue up 11% and EBITDA improving by 70 basis points to 5%, signaling a strong turnaround. Real Estate continues its strong trajectory with significant Gross Development Value (GDV) acquisitions and an 89% increase in residential pre-sales. The company's strategic acquisition of SML Isuzu has also contributed positively to the auto and farm businesses.

Management expressed confidence in the long-term economic fundamentals, expecting India's GDP to grow at 8-10% annually. For the Farm sector, the outlook for the tractor industry has been revised upwards to low double-digit growth (10-12%) for the full year. The LCV segment is also projected to achieve low double-digit growth. For SUVs, the company maintains its mid to high teens growth guidance. The company is also actively managing potential headwinds, such as commodity price volatility through hedging, and addressing supply chain concerns like the Nexperia chip issue with proactive mitigation strategies.

Segment Performance Comparison (Q2 FY26 vs Q2 FY25)

(Note: PAT figures are adjusted for one-off items where applicable.)

Confident Execution and Investor Trust

M&M's Q2 FY26 results underscore a period of confident execution and strategic clarity. The company's ability to deliver strong performance across diverse segments, coupled with proactive risk management and a clear vision for growth, reinforces investor trust. The focus on capitalizing on market leadership in core segments, achieving full potential in financial and technology services, and scaling growth gems positions M&M for sustained success in the evolving Indian and global markets. The management's 'delight' in the results is well-founded, reflecting not just strong numbers, but the quality and consistency of contributions from all business units.