Staff Writer
Mumbai: Mahindra & Mahindra Limited on Tuesday reported a better-than-expected performance for the fourth quarter ended March 31, 2026, driven by robust growth in its automotive and farm businesses, margin expansion and rising traction in electric vehicles and services.
The company posted a 42 per cent year-on-year jump in consolidated profit after tax (PAT) at Rs 4,668 crore for Q4FY26, while consolidated revenue rose 29 per cent to Rs 54,982 crore, supported by a 21 per cent increase in vehicle volumes and a sharp 36 per cent surge in tractor sales.
Standalone performance also exceeded analyst expectations, with revenue coming in at Rs 39,601 crore against estimates of around Rs 38,000 crore, while profit rose 53 per cent to Rs 3,737 crore, higher than the projected range of Rs 3,350–3,600 crore, marking a significant upside surprise.
For the full financial year 2025-26, consolidated revenue grew 25 per cent to Rs 1,98,639 crore, while PAT rose 35 per cent to Rs 17,099 crore. Return on equity stood at 20.1 per cent, with cash balances crossing Rs 41,000 crore, providing headroom for future investments.
The automotive segment remained the primary growth driver, with Q4 volumes rising 21 per cent to over 3.06 lakh units, including about 1.84 lakh utility vehicles. Full-year volumes grew 19 per cent. Standalone auto segment PBIT increased 28 per cent to Rs 2,955 crore, with margins at 9.5 per cent, or 10.9 per cent excluding electric vehicle-related dilution, reflecting operating leverage and improved product mix.
The company retained its leadership in the SUV segment with a revenue market share of 25.3 per cent and continued to dominate the light commercial vehicle category under 3.5 tonnes. It also emerged as the fifth-largest exporter of passenger and commercial vehicles during the year.
To support future demand, the company is scaling SUV production capacity to 60,000 units per month by the first half of FY27, alongside expanding electric vehicle capacity to 8,000 units. A new greenfield plant is also planned as part of its long-term growth strategy. The company said it has mapped risks across its Rs 1 lakh crore supply chain and is mitigating them through localisation, multi-sourcing and inventory buffers amid global uncertainties.
The farm equipment business recorded strong traction, with tractor volumes rising 36 per cent to 1,19,811 units in Q4. Full-year volumes crossed 5.26 lakh units, while market share stood at 43.6 per cent. Margins remained structurally strong at 19.4 per cent in Q4 and 19.9 per cent for the full year, with farm machinery revenues also showing healthy growth.
The company’s electric vehicle business turned PBIT positive during the quarter, with EV penetration reaching 9.6 per cent of its SUV portfolio, indicating improving scale and profitability.
The services segment delivered robust growth, with profit rising 64 per cent in Q4. The group’s financial services arm reported assets under management of Rs 1.34 lakh crore with stable asset quality, while its IT arm saw margins improve to 12.6 per cent despite a challenging global environment. Emerging businesses, termed “Growth Gems”, reported profit growth of 50 per cent.
The company is also accelerating deployment of artificial intelligence-led initiatives across its automotive and financial services businesses, targeting an incremental revenue impact of over Rs 4,100 crore by FY27, while improving efficiency and reducing costs.
Group CEO and Managing Director Anish Shah said FY26 was a defining year marked by strong execution and resilience despite geopolitical disruptions. He added that diversified growth drivers across businesses position the group well to navigate uncertainty.
Executive Director and CEO (Auto and Farm Sector) Rajesh Jejurikar said the company’s market share gains in SUVs and tractors were backed by consistent margin performance and operational discipline.
Looking ahead, the company has guided for mid-to-high teens growth in its SUV portfolio and mid-single digit growth in the tractor segment for FY27, as it continues to scale capacity and strengthen execution across businesses.
