Mahindra & Mahindra Q1 profit rises 34% to Rs 5,455 crore despite commodity inflation
New Delhi, July 30
Mahindra & Mahindra on Thursday reported a 34 per cent year-on-year rise in its consolidated profit after tax to Rs 5,455 crore for the first quarter of FY27, as strong performance in its auto, farm, financial services and technology businesses helped offset higher commodity costs.
The company said consolidated revenue rose 28 per cent to Rs 58,188 crore during the April-June quarter from Rs 45,529 crore a year earlier.
"We are delighted to report a strong start to FY27, despite a quarter marked by macro headwinds. The strength of our diversified portfolio coupled with proactive actions to navigate through this challenging environment has enabled us to deliver strong results," Group CEO and Managing Director Anish Shah said in the company's earnings press release.
The company said its Auto and Farm businesses maintained their leadership positions during the quarter, while Mahindra Finance and Tech Mahindra continued to improve profitability.
According to the company's analyst presentation, Auto PAT rose 21 per cent year-on-year, Farm PAT increased 15 per cent year-on-year, Mahindra Finance PAT jumped 78 per cent (y-o-y), while Tech Mahindra's PAT grew 28 per cent from last year.
The company also said it navigated through 400-500 basis points of commodity inflation in its auto business and 300-400 basis points in the farm business during the quarter.
Executive Director and CEO (Auto and Farm Sector) Rajesh Jejurikar said the company strengthened its position in both SUVs and tractors during the quarter.
"Our Tractors business gained 280 bps QoQ to reach 44.9% market share in Q1 F27... Our Core Tractor PBIT margin is 19.2% despite commodity inflation," he said.
M&M retained its leadership across key segments, with a 25 per cent revenue market share in SUVs, 44.9 per cent market share in tractors, and leadership in light commercial vehicles below 3.5 tonnes and electric three-wheelers. SUV volumes rose 15 per cent, while domestic tractor volumes increased 18 per cent during the quarter.
— ANI
Reader Comments
As a farmer, I'm happy to see tractor market share increasing. Mahindra tractors are built tough for Indian conditions. But 19.2% margin in tractors despite inflation - that's impressive management. Hope they keep supporting the farming community with good service. 🌾
Solid numbers from M&M. Tech Mahindra's 28% PAT growth is particularly noteworthy. It shows Indian IT services are still resilient globally. But commodity inflation of 400-500 bps in auto is concerning - hope they don't pass all of it to customers.
Mahindra Finance PAT up 78%! That's massive. Shows their financial services arm is really firing. But with interest rates still high, I worry about retail borrowers. Hope they're doing responsible lending. Overall, good results - the group diversification is working. 💰
Impressive quarter despite macro headwinds. 28% revenue growth shows strong demand across segments. But 34% PAT growth on 28% revenue growth - margins are improving. Only concern is whether this is sustainable if commodity inflation persists.
Really proud of M&M's performance. Their XUV700 and Scorpio have been blockbusters. But one thing - EV three-wheeler leadership is great but where's the electric SUV lineup beyond the XUV400? Need more EV options! Otherwise, excellent results. ⚡
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