Mahindra & Mahindra (M&M) reported a 23% increase in adjusted profit for the first quarter, driven by strong sales of sport utility vehicles (SUVs) and a resurgence in tractor demand.
The standalone net profit for the quarter rose to 26.13 billion rupees ($312 million) from the previous year’s 21.2 billion rupees, which had been boosted by gains from the sale of stakes in two units. Despite this, the overall profit fell by 5.3% year-over-year when considering the previous year’s gains.
Following the announcement of the financial results, M&M’s shares experienced volatility, initially dropping by 1.7% before rebounding to trade 1% higher in the afternoon session. The company’s total revenue increased by 12% to 270.39 billion rupees. M&M’s SUV sales surged by 24%, leading the industry, while tractor sales rose by 5.6% in the first fiscal quarter, recovering from a 7% decline in fiscal 2024.
Mahindra & Mahindra Posts 23% Q1 Profit Increase Driven by SUV and Tractor Sales
M&M’s auto sales, including personal and commercial vehicles, grew by 13.1% to 189.47 billion rupees, which accounted for two-thirds of the company’s total revenue. The farm equipment business also showed strong performance, with sales rising by 9.2%. However, expenses for the company increased by 10%, mainly due to higher costs of raw materials like aluminum, copper, and rubber.
In comparison, Maruti Suzuki India, M&M’s rival and the country’s leading car manufacturer by sales, was expected to report its financial results later in the day. The exchange rate at the time of reporting was $1 equivalent to 83.73 Indian rupees.
