Mahindra & Mahindra Q2 profit rises 30 per cent as revenue jumps 25 per cent

MUMBAI: Mahindra & Mahindra has shifted into a higher gear, with its automotive business driving a strong second-quarter performance even as its farm equipment division took a breather. The automaker reported a 25.3 per cent year-on-year rise in consolidated revenue from operations to Rs 57,514.98 crore for the quarter ended 30 September 2026, while profit after tax attributable to its owners increased 24.9 per cent to Rs 4,587.88 crore.

The company had reported revenue from operations of Rs 45,885.40 crore and profit attributable to owners of Rs 3,673.32 crore in the corresponding quarter last year. Consolidated profit after tax, including the share attributable to non-controlling interests, rose 30.3 per cent to Rs 5,166.77 crore from Rs 3,963.75 crore.

Total income for the quarter increased to Rs 58,740.15 crore from Rs 46,781.18 crore. The growth was supported by higher automotive revenue, while income from investments related to subsidiaries, associates and joint ventures stood at Rs 38.15 crore, against Rs 220.27 crore a year earlier. Other income, meanwhile, rose to Rs 1,187.02 crore from Rs 675.51 crore.

The earnings improvement came despite a rise in expenditure. Consolidated expenses increased to Rs 51,845.48 crore from Rs 41,192.50 crore in Q2 FY26. The cost of materials consumed climbed to Rs 36,908.96 crore from Rs 27,886.65 crore, while purchases of stock-in-trade rose to Rs 2,235.06 crore from Rs 2,044.50 crore.

Employee benefits expense increased to Rs 3,303.26 crore from Rs 3,111.99 crore. Finance costs rose to Rs 2,681.93 crore from Rs 2,347.03 crore, while depreciation, amortisation and impairment expenses increased to Rs 1,831.88 crore from Rs 1,668.89 crore. Other expenses stood at Rs 6,774.60 crore, compared with Rs 5,944.29 crore.

The company also recorded a loss of Rs 55.15 crore from investments related to subsidiaries, associates and joint ventures, against Rs 10.82 crore in the year-ago quarter.

Profit before exceptional items, the share of profit or loss from associates and joint ventures, and tax rose to Rs 6,894.67 crore from Rs 5,588.68 crore. There were no exceptional items during either quarter. After adding the share of profit from associates and joint ventures of Rs 470.03 crore, against Rs 469.25 crore a year earlier, profit before tax increased to Rs 7,364.70 crore from Rs 6,057.93 crore.

The total tax expense rose to Rs 2,197.93 crore from Rs 2,094.18 crore. This included current tax of Rs 2,115.98 crore and deferred tax of Rs 81.95 crore. The resulting consolidated profit after tax stood at Rs 5,166.77 crore.

Basic earnings per share increased to Rs 41.04 from Rs 32.90, while diluted earnings per share rose to Rs 40.90 from Rs 32.51. The face value of each equity share is Rs 5.

The segment numbers show where the acceleration came from. The automotive business remained Mahindra’s biggest revenue contributor, with segment revenue rising 38.9 per cent to Rs 37,756.35 crore from Rs 27,170.87 crore in Q2 FY26.

Its segment result, after exceptional items and the share of profit or loss from associates and joint ventures, increased to Rs 3,319.37 crore from Rs 2,538.19 crore. Before the share of associates and joint ventures, the automotive segment result stood at Rs 3,330.89 crore, compared with Rs 2,582.20 crore.

The farm equipment business, however, had a softer quarter. Segment revenue declined 6.4 per cent to Rs 9,571.58 crore from Rs 10,225.01 crore. Its segment result fell to Rs 1,375.53 crore from Rs 1,607.81 crore after accounting for the share of profit or loss from associates and joint ventures. Before that share, the result was Rs 1,375.53 crore, against Rs 1,605.27 crore.

The services businesses also recorded growth. Financial services revenue increased to Rs 5,905.96 crore from Rs 5,015.65 crore, while its segment result after the share of associates and joint ventures rose to Rs 1,185.12 crore from Rs 751.61 crore.

Industrial businesses and consumer services generated revenue of Rs 5,914.82 crore, compared with Rs 5,032.57 crore. Its segment result after the share of associates and joint ventures was Rs 812.51 crore, marginally lower than Rs 819.69 crore a year earlier. Before the share of associates and joint ventures, the result increased to Rs 349.18 crore from Rs 324.40 crore.

Across the four segments, total segment revenue stood at Rs 59,148.71 crore, against Rs 47,444.10 crore. After eliminating inter-segment revenue of Rs 1,595.58 crore, income from operations came to Rs 57,553.13 crore.

The consolidated segment results after exceptional items and the share of profit or loss from associates and joint ventures totalled Rs 6,692.53 crore, compared with Rs 5,717.30 crore in the corresponding quarter. Finance costs outside the financial services business were Rs 161.96 crore, while other unallocable income, including items not allocated to segments, stood at Rs 834.13 crore.

For the six months ended 30 September 2026, consolidated revenue from operations rose 26 per cent to Rs 1,15,048.42 crore from Rs 91,321.28 crore in the corresponding period last year. Total income increased to Rs 1,17,943.75 crore from Rs 93,156.32 crore.

Total expenses for the first half climbed to Rs 1,03,788.48 crore from Rs 82,401.67 crore. Profit before exceptional items, the share of associates and joint ventures, and tax increased to Rs 14,155.27 crore from Rs 10,754.65 crore. With no exceptional items recorded during the period, profit before tax and the share of associates and joint ventures remained at Rs 14,155.27 crore.

The share of profit from associates and joint ventures stood at Rs 837.52 crore, compared with Rs 947.39 crore a year earlier. Profit before tax consequently rose to Rs 14,992.79 crore from Rs 11,702.04 crore.

Consolidated profit after tax increased to Rs 11,164.33 crore from Rs 8,340.33 crore. Of this, Rs 10,042.42 crore was attributable to the company’s owners, compared with Rs 7,756.64 crore in the year-ago period. The share attributable to non-controlling interests rose to Rs 1,121.91 crore from Rs 583.69 crore.

Basic earnings per share for the half year increased to Rs 89.84 from Rs 69.47, while diluted earnings per share rose to Rs 89.48 from Rs 68.97.

The segment performance over the six months reflected the same divide between automotive and farm equipment. Automotive revenue increased to Rs 72,143.60 crore from Rs 53,169.58 crore, while its segment result after the share of associates and joint ventures rose to Rs 5,964.09 crore from Rs 4,600 crore.

Farm equipment revenue grew modestly to Rs 22,072.35 crore from Rs 21,045.60 crore, but its segment result eased to Rs 3,156.64 crore from Rs 3,238.82 crore.

Financial services revenue rose to Rs 11,603.79 crore from Rs 9,988.88 crore, with its segment result increasing to Rs 2,408.72 crore from Rs 1,435.40 crore. Industrial businesses and consumer services revenue increased to Rs 13,115.54 crore from Rs 9,933.13 crore, while its segment result after the share of associates and joint ventures rose to Rs 2,158.77 crore from Rs 1,508.09 crore.

Total segment revenue for the first half was Rs 1,18,935.28 crore. After inter-segment revenue of Rs 3,194.58 crore was eliminated, income from operations stood at Rs 1,15,740.70 crore.

On a standalone basis, revenue from operations increased 27.1 per cent to Rs 42,477.42 crore in Q2 FY27 from Rs 33,421.60 crore in the corresponding quarter last year. Total income rose to Rs 45,343.40 crore from Rs 35,781.46 crore.

Standalone expenses increased to Rs 38,705.51 crore from Rs 29,712.01 crore. The cost of materials consumed rose to Rs 34,035.77 crore from Rs 25,796.49 crore, while purchases of stock-in-trade increased to Rs 1,587.97 crore from Rs 1,276.13 crore.

Employee benefits expense stood at Rs 1,412.33 crore, compared with Rs 1,298.36 crore. Finance costs increased to Rs 66.72 crore from Rs 58.99 crore, while depreciation, amortisation and impairment expense rose to Rs 1,074.42 crore from Rs 1,040.64 crore. Other expenses increased to Rs 2,471.72 crore from Rs 1,983.17 crore.

Standalone profit before tax increased to Rs 6,637.89 crore from Rs 6,069.45 crore. After a tax expense of Rs 1,536.27 crore, profit after tax rose to Rs 5,101.62 crore from Rs 4,520.52 crore. Basic earnings per share stood at Rs 42.42, against Rs 37.64, while diluted earnings per share was Rs 42.31, compared with Rs 37.52.

For the first half, standalone revenue from operations increased to Rs 84,397.16 crore from Rs 67,504.83 crore. Total income rose to Rs 88,078.54 crore from Rs 70,656.03 crore, while expenses climbed to Rs 76,664.76 crore from Rs 60,115.33 crore.

Profit before tax increased to Rs 11,413.78 crore from Rs 10,540.70 crore, while profit after tax rose to Rs 8,786.59 crore from Rs 7,970.36 crore. Basic earnings per share for the six months stood at Rs 73.08, compared with Rs 66.37.

Standalone income from investments related to subsidiaries, associates and joint ventures included dividends of Rs 1,760.93 crore during the September quarter. The corresponding figure for the first half was Rs 1,397.04 crore, compared with Rs 1,769.07 crore in the year-ago period.

Alongside the results, Mahindra disclosed that it had entered into a business transfer agreement on 5 August 2026 to transfer its Truck and Bus division to subsidiary SML Mahindra Limited. The transaction is subject to the fulfilment of customary closing conditions.

The assets and liabilities of the division have been presented as held for sale in the standalone balance sheet as at 30 September 2026. These included assets of Rs 1,034.92 crore and liabilities of Rs 545.29 crore directly associated with the assets classified as held for sale.

The company’s standalone balance sheet reported total assets of Rs 1,32,338.11 crore at the end of September, compared with Rs 1,20,602.68 crore at 31 March 2026. Total equity stood at Rs 79,161.81 crore, while current assets were Rs 71,108.12 crore.

On a consolidated basis, total assets increased to Rs 3,52,268.43 crore from Rs 3,17,634.64 crore at the end of March. Consolidated equity stood at Rs 1,15,577.66 crore, while total liabilities were Rs 2,36,690.77 crore.

The consolidated cash flow statement showed a net cash outflow of Rs 673.12 crore from operating activities during the first half, compared with a net inflow of Rs 1,203.12 crore in the corresponding period last year.

Operating profit before working capital changes increased to Rs 15,927.43 crore from Rs 13,121.97 crore. However, working capital movements resulted in an outflow of Rs 13,584.03 crore. This included an outflow of Rs 13,482.32 crore from financial services receivables and Rs 4,608.20 crore from trade and other receivables. Inventory movements absorbed a further Rs 2,170.30 crore, partly offset by an inflow of Rs 6,676.79 crore from trade and other payables and provisions.

Cash generated from operations stood at Rs 2,343.40 crore, compared with Rs 3,530.36 crore a year earlier. Income tax paid increased to Rs 3,016.52 crore from Rs 2,327.24 crore.

Investing activities used net cash of Rs 9,969.60 crore, against an outflow of Rs 2,514.83 crore in the year-ago period. Payments to acquire property, plant and equipment and other intangible assets amounted to Rs 7,364.70 crore, while payments to acquire investments totalled Rs 88,324.87 crore. These were partly offset by proceeds from the sale of investments of Rs 80,135.36 crore and maturities of bank deposits worth Rs 13,093.11 crore.

Financing activities generated net cash of Rs 14,795.80 crore, compared with an outflow of Rs 650.76 crore in the first half of FY26. The company raised Rs 56,707.87 crore through borrowings and repaid Rs 37,201.70 crore. Dividends paid, including unclaimed dividends, amounted to Rs 3,683.49 crore, while dividends paid to non-controlling interests stood at Rs 624.11 crore.

The group also paid Rs 495.42 crore towards lease liabilities, including interest, and Rs 123.49 crore in interest, commitment and finance charges outside the financial services business.

After accounting for operating, investing and financing activities, cash and cash equivalents increased by Rs 4,153.08 crore during the half year. The closing balance stood at Rs 8,165.74 crore, compared with Rs 2,945.14 crore at the end of September 2025.

The standalone cash flow statement presented a stronger operating picture. Net cash generated from operating activities increased to Rs 10,246.16 crore from Rs 7,803.95 crore in the corresponding period last year. Cash generated from operations before tax stood at Rs 12,470.17 crore, compared with Rs 9,569.91 crore, while income tax paid was Rs 2,224.01 crore.

Standalone investing activities used net cash of Rs 5,093.87 crore, compared with Rs 4,464.56 crore a year earlier. Financing activities used Rs 4,773.42 crore, against Rs 3,366.73 crore. The company ended the half year with cash and cash equivalents of Rs 1,139.74 crore, up from Rs 760.78 crore at the beginning of the period.

The company reported a consolidated debt-equity ratio of 0.03 times, excluding the financial services business, for the September quarter, compared with 0.05 times a year earlier. Its current ratio stood at 1.29 times, against 1.35 times. The consolidated net profit margin was 8.98 per cent, compared with 8.60 per cent in Q2 FY26, while the operating margin, including investment-related income and losses, stood at 13.38 per cent against 14.61 per cent.

The board meeting also brought a senior management change. Shuchi Suri, currently executive vice-president of Mahindra Experiences and a senior management personnel of the company, will transition to the role of chief sales and marketing officer for the automotive business with effect from 1 April 2027.

Following the transition, she will cease to be classified as a senior management personnel of the company. Mahindra disclosed the change under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations.

The board meeting, held on 5 November 2026, began at 11 am and concluded at 12.47 pm. The unaudited standalone and consolidated results were reviewed by the audit committee and approved by the board. Statutory auditor B S R & Co. LLP issued limited review reports on the results.

The auditors’ consolidated review report also disclosed that the interim results of 29 subsidiaries, with total assets of Rs 1,93,439.60 crore before consolidation adjustments, had been reviewed by other auditors. Their reported revenue before consolidation adjustments was Rs 9,165.15 crore for the quarter and Rs 18,754.03 crore for the half year. The group’s share of profit after tax from one associate and 10 joint ventures, whose results had also been reviewed by other auditors, was Rs 65.82 crore for the quarter and Rs 81.99 crore for the half year.

A further 90 subsidiaries had not been reviewed. Their results reflected assets of Rs 13,093.31 crore before consolidation adjustments, quarterly revenue of Rs 3,814.91 crore and a net profit after tax of Rs 38.54 crore. For the half year, these entities reported revenue of Rs 8,011.52 crore and a net loss after tax of Rs 78.28 crore. The auditors noted that these entities were not material to the group and their conclusion was not modified in respect of these matters.

Mahindra also flagged uncertainty around the implementation framework for the Environment Protection (End-of-Life Vehicles) Rules, 2025, which came into effect on 1 April 2025. The rules require vehicle manufacturers to fulfil extended producer responsibility obligations through the purchase of certificates from registered vehicle scrapping facilities. As implementation details, including the pricing mechanism for certificates, are yet to be finalised, the group said it could not reliably estimate the potential financial impact.

With automotive revenue doing much of the heavy lifting, financial services delivering a stronger contribution and farm equipment reporting a softer quarter, Mahindra’s latest results show that its growth is being driven by more than one engine. The next milestones will include the completion of the Truck and Bus division transfer and Shuchi Suri’s move into the automotive sales and marketing role in April 2027.