M&M profit surges 42%, but auto margins remain flat

Mumbai: Mahindra & Mahindra's consolidated net profit surged 42% from a year earlier in the fiscal fourth quarter, driven by growth across its automotive, farm equipment, and services businesses. Supply chain woes, however, weighed on margins in the company's automotive business.

Net profit at the tractor-to-technology group rose to ₹4,668 crore in the March quarter from ₹3,295 crore a year earlier. Revenue from operations climbed 29% to ₹54,982 crore, from ₹42,599 crore, reflecting sustained demand for Mahindra's SUV and tractor portfolios despite a challenging macro environment.

Standalone profit surged 53% to ₹3,737 crore while revenue grew 25% to ₹39,601 crore during the quarter. The company sold 307,000 units in the March quarter, a 21% increase from a year earlier. Tractor sales surged 36% to 120,000 units. Automotive margins remained largely flat during the quarter as production constraints and supply-side bottlenecks dented profitability despite strong volume growth. The company's auto EBIT margins inched up marginally to 10.9% in Q4 FY26, from 10% a year-ago due to operational disruptions.

Anish Shah, group MD and CEO, termed the results as a "breakthrough performance" across group companies despite geopolitical headwinds and multiple disruptions. He pointed to the strength of M&M's diversified portfolio that allowed group to continue growing despite volatile even external conditions.

For FY26, consolidated net profit grew 32% to ₹17,099 crore and revenue climbed 25% to ₹1,98,639 crore. Standalone profit in FY26 rose 32% to ₹15,639 crore and revenue rose 25% to ₹1,47,765 crore.

On the impact of geopolitical uncertainties, Rajesh Jejurikar, executive director, auto and farm sector said, "We've not lost any volumes in March and April because of shortage of gas. There are other supply-side issues related to manpower that have caused some production loss."

"On demand, most of our SUV customers are not affected by fuel price increases, but our LCV portfolio will be sensitive to inflationary pressures," he said.

The company's EV arm, Mahindra Electric Automobile, crossed sales of 55,000 eSUVs since launch, achieving the top rank by revenue market share in the eSUV segment at 37.4% in FY26.

M&M's board declared a dividend of ₹33 per share. CFO Amarjyoti Barua noted that strong cash generation-with a standalone closing cash balance of ₹41,159 crore-has provided flexibility for future growth. For FY27, the management guided mid-to-high teen SUV volume growth and mid- single-digit tractor industry growth, subject to geopolitical uncertainty subsiding.

Shares of M&M closed 3.4% higher at Rs3,211.65 apiece on the BSE, outperforming a 0.3% decline in the benchmark Sensex.

Mahindra bets big on AI; eyes Rs4,100 crore revenue impact in FY27
The Mahindra Group is putting artificial intelligence to work across its businesses — from the shop floor to the call centre — and its impact on profitability.

Addressing the quarterly earnings press meet, Anish Shah, group MD & CEO, said in the automotive business, AI-led initiatives are targeted to generate more than Rs 4,100 crore in revenues in FY27, enhance customer satisfaction by 2-3 percentage points, and cut new product development timelines by 10%.

At Mahindra Finance, the targets are sharper—Rs 10,000 crore in disbursements through AI-driven customer acquisition, 80% of operations running autonomously, and 75% of live loan collections AI-assisted.

On the shop floor, cameras and computer vision are being used for quality inspection; in marketing, AI is handling personalised outreach at scale. The group has also set up a two-tier oversight structure to ensure AI is deployed responsibly across all its businesses.