Mahindra & Mahindra Q2 profit rises 28 pc on strong farm sector growth

Mumbai, Nov 4 (PTI) Mahindra & Mahindra on Tuesday posted a 28 per cent year-on-year increase in its consolidated profit after tax to Rs 3,673 crore for the second quarter ended September 30, 2025, driven by robust performance of the farm sector, while also seeing the impact of the GST transition on the auto sector.

The company reported a profit after tax (PAT) of Rs 2,867 crore for the July-September period of the last fiscal.

The company said 28 per cent growth in PAT excludes one-time gain on land sale in the second quarter of FY25 as well as SML Isuzu tax impact and prior period PLI benefits in Q2 F26.

Revenue rose to Rs 46,106 crore in the September quarter from Rs 37,924 crore in the year-ago period, the Mumbai-based company said.

The company also said it was revising upward the industry outlook on the tractor sales, which is estimated to grow in the lower double digit this fiscal from its earlier projections of mid-to-high single digit.

Auto and Farm continue to deliver on growth and margins. Financial services delivered 45 per cent growth in PAT, while keeping asset quality strong, it said adding TechM continued its journey of margin expansion with EBIT(earnings before interest and taxes) improvement of 250 bps.

On a standalone basis, revenue was up 21 per cent year-on-year at 35,080 crore in the second quarter while the PAT grew 18 per cent year-on-year to Rs 4,521 crore, the company said.

"Auto and farm sustained their leadership with consistent gains in market share and profitability. TechM is progressing well on its transformation journey," Mahindra & Mahindra Group CEO & Managing Director Anish Shah said.

He said while the farm sector with 54 per cent growth in the PAT led the overall performance in the second quarter, the 14 per cent y-o-y PAT growth in the auto segment was lower and was impacted by the transition for GST.

The total vehicle sales during the quarter under review stood at 2.62 lakh (includes sales by LMM & MEAL), a year-on-year growth of 13 per cent with UV volumes at 1.46 lakh, the company said and added that Q2 SUV revenue market share during the reporting quarter was seen at 25.7 per cent, an increase of 390 basis points.

"On tractors, we are increasing the industry guidance or the industry outlook. We were at a single digit, with mid-to-high single digit, earlier, which we are increasing now to low double digits," said Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), M&M Ltd.

He attributed the tractor demand to better monsoon and lower GST, among others, along with better MSP yields.

"Our solid Q2 consolidated results reflect the strength of our diversified portfolio. We continue to deliver on our strategic priorities. We had strong cash generation in the first half, delivering over 10k crores of operating cash flow. We remain committed to sustainable growth and value creation," said Amarjyoti Barua, Group Chief Financial Officer, M&M Ltd.

Jejurikar also said that post-festive demand continues to be robust and added that while it will never be at the level of the festival period, it will not fall off as significantly as it is normally seen .

Mahindra & Mahindra Financial Services Limited (MMFSL) achieved a 45 per cent PAT growth and remains committed to quality growth and digital transformation, he added.

"Our growth gems are steadily advancing towards their ambitious goals, reinforcing our long-term value creation potential," Shah stated.

On the rare-earth magnets, Jejurikar said, "We are well covered for this in this financial year." The company revealed that it has sold more than 30,000 units of its Born Electric portfolio, the BE6 and XEV9.

Shares of the company on Tuesday were trading 1.22 per cent up at Rs 3,591.70 apiece on the BSE. PTI IAS MR MR