M&M Q3 Results: Profit Soars 20% to INR 3,181 Crore on Strong SUV and Tractor Sales

Introduction

Mahindra & Mahindra Ltd. (M&M) announced a robust financial performance for the third quarter of fiscal year 2025, ending December 31, 2024. The company reported a 20% year-on-year increase in its consolidated profit after tax (PAT), which reached INR 3,181 crore. This growth was primarily fueled by sustained demand for its sport utility vehicles (SUVs) and tractors. Consolidated revenue from operations for the quarter grew by 17% to INR 41,470 crore, reflecting strong execution across its core business segments.

Detailed Financial Performance

The company's standalone results were equally strong, with net profit rising 19% to INR 2,964 crore. Standalone revenue saw a 20.3% increase, amounting to INR 30,538 crore. The performance slightly exceeded analyst expectations, which had pegged the net profit around INR 2,921 crore. The operating margin on a standalone basis expanded by 137 basis points to 14.35%, underscoring improved profitability driven by operational efficiencies and a favorable product mix.

Dr. Anish Shah, Managing Director & CEO of M&M Ltd., commented on the results, stating, "Our businesses continue to demonstrate strength in execution. Auto and Farm delivered solid performance on market share and margins, on the back of focused execution."

Automotive Division Leads the Charge

M&M's automotive division was a significant contributor to the quarterly growth. The segment recorded a 21% increase in consolidated revenue, reaching INR 23,391 crore, while its consolidated PAT grew by 20% to INR 1,438 crore. Total vehicle sales volumes for the quarter stood at 245,000 units, a 16% increase from the previous year.

The demand for SUVs remained a key driver, with sales of 142,000 units. This strong performance helped M&M solidify its leadership position, increasing its SUV revenue market share by 200 basis points to 23%. The company also maintained its top position in the light commercial vehicles (LCVs) segment (under 3.5T) with a market share of 51.9%, a gain of 230 basis points. The auto segment's standalone profit before interest and tax (PBIT) margin improved by 120 basis points to 9.7%.

Record Performance in Farm Equipment

The farm equipment sector delivered a standout performance, achieving its highest-ever Q3 tractor market share of 44.2%, an increase of 240 basis points year-on-year. Tractor sales volumes surged by 20% to 121,000 units. This growth translated into an 11% rise in consolidated revenue for the farm division to INR 9,537 crore and an 11% increase in consolidated PAT to INR 996 crore.

The segment's profitability saw a significant boost, with standalone PBIT growing by 42% to INR 1,479 crore. The PBIT margin expanded by a notable 260 basis points to 18.1%, reflecting strong operational leverage and favorable market conditions.

Growth in Services and Technology Businesses

M&M's diversified portfolio also showed positive momentum. Mahindra & Mahindra Financial Services Ltd (MMFSL) reported a 19% growth in its Assets Under Management (AUM), with Gross Stage 3 (GS3) assets remaining stable at 3.9%. Tech Mahindra, the group's IT services arm, showed signs of a turnaround, with its EBIT margin expanding significantly and PAT rising 93% year-on-year, supported by strong deal wins.

Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), highlighted the market leadership, stating, "In Q3 F25, we were No. 1 in SUV revenue market share with 200 bps YoY increase... We achieved highest ever Q3 tractor market share at 44.2 per cent, a gain of 240 bps YoY."

Management Outlook

The management expressed confidence in the company's trajectory, emphasizing a focus on execution and disciplined capital allocation. Amarjyoti Barua, Group Chief Financial Officer, noted that the strong Q3 results were achieved despite global headwinds. He affirmed the company's commitment to execution and creating long-term shareholder value. While domestic operations remain strong, the company is evaluating its international operations, which face macroeconomic challenges, and expects to make decisions in the coming quarter.

Conclusion

Mahindra & Mahindra's Q3 FY25 results highlight its robust operational strength and market leadership in the key automotive and farm equipment sectors. The significant growth in profit and revenue, coupled with margin expansion, demonstrates the company's ability to capitalize on strong domestic demand. With its services and technology businesses also showing positive momentum, M&M appears well-positioned to continue its growth trajectory while navigating global economic uncertainties.