Mahindra and Mahindra FY26: PAT up 35%, EVs turn PBIT positive, and capacity ramps up

Mahindra and Mahindra closed FY26 with another step-up in profitability, backed by a strong auto cycle, improving performance in services businesses, and a clearer bridge toward EV profitability. Consolidated income from operations rose to Rs 1,98,638.55 crore, up 25% year-on-year. Profit attributable to owners of the company increased to Rs 17,098.85 crore, up 35%. For Q4 FY26, consolidated income from operations grew to Rs 54,981.91 crore and profit attributable to owners rose to Rs 4,667.57 crore.

Management framed the year as one of “acceleration in uncertainty”, highlighting resilience in supply chains, disciplined execution in Auto and Farm, and the early monetisation of AI initiatives. The company also emphasized capital allocation actions in Farm international operations and a strong standalone cash position, alongside a higher dividend.

FY26 performance: growth led by Auto, supported by Services and Investments

Auto remained the largest driver of group earnings. In FY26, Automotive segment revenue on a consolidated basis increased to Rs 1,17,834.13 crore, up from Rs 90,824.58 crore in FY25. Auto PAT was Rs 7,842 crore, up 33% year-on-year. The company reiterated its number one position in SUV revenue market share for FY26 and leadership in LCV under 3.5T market share at 52.3%.

Farm delivered a strong domestic year with higher volumes and margins, but consolidated Farm PAT growth was tempered by international actions and impairments. FY26 Farm segment revenue increased to Rs 42,568.39 crore from Rs 35,375.30 crore. Farm PAT was Rs 4,298 crore, up 13%.

Financial Services and other industrial and consumer businesses added to the earnings momentum. Consolidated segment revenue for Financial Services stood at Rs 20,949.32 crore in FY26. Industrial Businesses and Consumer Services segment revenue was Rs 22,748.93 crore.

EVs: profit visibility improves, but mix still matters

A key highlight from the analyst meet was the disclosure that BEV end-to-end was PBIT positive for both Q4 FY26 and FY26. The company presented BEV performance as the combination of Mahindra Electric Automobile Ltd and the eSUV contract manufacturing that is reported inside auto standalone.

For Q4 FY26, MEAL reported revenue of Rs 4,820 crore, EBITDA of Rs 523 crore and PBIT of Rs 227 crore. The eSUV contract manufacturing inside Auto standalone contributed revenue of Rs 4,080 crore with PBIT of Rs 19 crore. Combined, BEV end-to-end PBIT was Rs 245 crore.

For FY26, BEV end-to-end revenue was Rs 14,389 crore, EBITDA was Rs 1,314 crore and PBIT was Rs 287 crore. Management also discussed steadily rising eSUV penetration, reporting 9.6% penetration in Q4 FY26.

The company acknowledged that the contract manufacturing component has low margins and dilutes reported auto standalone margins. For Q4 FY26, auto business excluding eSUV contract manufacturing delivered 10.9% PBIT, while reported auto standalone margin was 9.5% due to the dilution.

Capacity and product roadmap: near-term ramp, longer-term platform expansion

Mahindra’s outlook for FY27 is built on capacity ramp-up rather than major new SUV launches. Management shared a month-on-month capacity table that maps SUV ICE and BEV capacity expansion.

SUV ICE capacity rises from 56.5k per month at FY26 exit to 60k per month by FY27 H1. BEV capacity remains 8k per month operational through FY27. Beyond that, the company highlighted planned incremental capacity for FY28 launches: an additional 10k per month for SUVs and 4k per month for BEVs.

The company also reiterated the NU_IQ platform capacity creation at Chakan to be operational in phases by FY28 and a greenfield Nagpur facility for CY28 and beyond, targeted at 5 lakh units per annum UV capacity once fully operational.

On the product roadmap, Mahindra updated its longer-term launch aspirations starting 1 April 2026. For LCV under 3.5T, it now targets 10 launches by FY31. For SUVs, it targets 10 ICE SUV nameplates and 6 BEVs by FY31.

Farm: domestic fortress and international clean-up

In Farm, Mahindra highlighted strong market share gains and margin resilience, while being candid about international headwinds. FY26 domestic tractor volume was 526k and market share reached 43.6%, including Gromax. Core tractor PBIT margin for FY26 was 20.8%, with farm standalone PBIT margin at 19.8%.

However, management noted that international businesses weighed on consolidated performance. The company outlined three actions: Sampo sale and liquidation process with wind down planned over FY27, sale of Erkunt Foundry with closing expected in 1H FY27, and actions related to MAM Japan. Management stated the remaining strategic international focus markets are the US, Brazil and Turkey.

For FY27, management guidance for tractors is mid single digit industry growth, while acknowledging uncertainties including monsoon risks.

Cash, dividend, and governance updates

Standalone cash flow for M&M plus MEAL plus Last Mile Mobility showed a closing balance of Rs 41,159 crore, up from Rs 27,389 crore opening balance. Net cash generation was Rs 16,339 crore. The board recommended a final dividend of Rs 33 per share for FY26, compared with Rs 25.3 per share for FY25, and announced a record date of 3 July 2026 and AGM on 30 July 2026.

The company also disclosed exceptional items arising from the notified Labour Codes: Rs 292.94 crore for the group and Rs 98.19 crore for the standalone company. Additionally, it noted that it cannot yet reliably estimate the financial impact of the End-of-Life Vehicles Rules 2025 due to pending implementation framework.

Takeaways

Mahindra’s FY26 delivery shows the benefits of a strong product cycle in SUVs, continued dominance in LCVs, and a domestic tractor business that has defended margins through volatility. The sharper disclosure on EV profitability, along with clear capacity ramp plans, strengthens investor visibility on the next phase of growth.

At the same time, investors will likely track three variables closely in FY27: the pace of supply chain normalization for critical components like memory chips, the trajectory of commodity inflation and pricing actions, and the execution of farm international exits to reduce earnings drag.