Key Financial Performance

  • Consolidated PAT: Increased 34% YoY to ₹4,486 crore
  • Consolidated Revenue: Grew 28% YoY
  • ROE: Achieved 23% for the quarter
  • EPS: ₹48 for the quarter
  • Auto Segment PAT: Up 21% YoY
  • Farm Segment PAT: Up 15% YoY
  • Mahindra Finance PAT: Increased 78% YoY
  • Tech Mahindra PAT: Grew 28% YoY
  • Growth Gems PAT: Increased 3x YoY

Segment-wise Performance Details

Auto Business:

  • SUV volumes grew 15% despite production constraints
  • LCV volumes grew 20%
  • EV penetration reached 12% (industry average 9%)
  • Cumulative EV sales reached 77,000 vehicles
  • XUV 9S became the single largest selling EV across all passenger vehicles
  • Auto revenue grew 32% YoY
  • Auto PBIT margin at 8.9% (impacted by 450 bps commodity pressure)
  • EV business delivered ₹288 crore PBIT end-to-end (₹270 crore in Mahindra Electric company)

Farm Business:

  • Domestic tractor volume grew 18% YoY
  • Exports grew 15% YoY
  • Market share at 43.8% (vs 45.2% in Q1 FY26)
  • Farm machinery business achieved highest ever quarterly performance
  • Core tractor margin at 19.2%
  • Farm consolidated margin at 14.2% (impacted by impairment on Erkunt Foundry)
  • Farm implement revenue reached ₹370 crore

Mahindra Finance:

  • AUM and disbursement growth driving performance
  • GS2 + GS3 below 10% for last 7 quarters
  • NIM expanded to 7.3% (from 6.5%)
  • ROA improved to 2.4%
  • Wheels business grew ~20%, non-wheels business grew 79%
  • Mortgage, SME and PL businesses driving diversification
  • Targeting ₹3 lakh crore book by 2031 with 70:30 wheels:non-wheels mix

Tech Mahindra:

  • EBIT margin reached 14.4%
  • On track to achieve 15% EBIT margin by end of FY27
  • Free cash flow increased 94%
  • Large deal wins and geographic diversification driving growth

Growth Gems Performance:

  • Real Estate (Lifespaces): Added ₹5,600 crore GDV (up 60%), free sales of ₹925 crore (up 2x), delivered OCs ahead of schedule, total GDV now ₹50,000 crore
  • Logistics: Turned profitable with ₹25 crore business-level profit (₹14 crore at M&M level), highest ever quarterly profit, reduced white space from 16 lakh sq.ft to 2 lakh sq.ft
  • Truck & Bus: Combined with SML, volume grew 11%, market share at 7.8%
  • Aerostructures: Cumulative contract wins of $1.2 billion ($600 million in last year alone), recognized among top-quality players globally
  • Last Mile Mobility: Volume of 42,000 units, maintained #1 position, L5 EV penetration reached 40% (from 27% last year)

Capacity Expansion Plans

  • ICE SUV Capacity: 60,000/month by September 2026
  • EV Capacity: 8,000/month operational readiness by September 2026
  • Total Capacity (Sep 2026): 68,000 units/month
  • FY28 Capacity Target: 82,000 units/month (70,000 ICE + 12,000 EV)
  • Future Expansion: Additional 10,000 in Chakan, 20,000/month in Nagpur (first phase H1 CY2029)
  • Long-term Goal: 2x capacity increase between now and FY31

Commodity Price Impact

  • Auto Segment: 450 bps margin pressure due to commodity inflation
  • Farm Segment: 300+ bps pressure, mainly from steel (up 24%) and rubber (up 30%, 53% from beginning of calendar year)
  • Price Actions: Auto took 2.7% average price increase in mid-July, Farm implemented ₹15,000 price increase in August

AI Initiatives and Digital Transformation

Mahindra showcased significant AI adoption across businesses:

  • Paint.ai: Improving paint quality, reducing paint usage and rework in paint shop
  • Service.ai: 2,600 workshop assistants using AI, reducing turnaround time
  • Reach.ai: Generated 91,000 test drives through AI communication
  • Simulation.ai: Reduced product development simulation time from 10 hours to 2 minutes
  • SamurAI: Processes 65% of loan files at Mahindra Finance
  • Voice.ai: Used across multiple businesses for collections and sales
  • Foundation: 50 AI engineers, 19 proprietary models, 1,900 leaders trained, 15 transformation projects

Rural Market Assessment

Management highlighted several positive rural enablers:

  • Farm labor shortage accelerating mechanization
  • Rabi cash flows healthy with 19% improvement in wheat procurement
  • Rainfall deficit improved from severe levels to 15% deficit
  • Reservoir levels 7% below LPA but recovered from worse levels
  • Kharif sowing accelerated, shortfall over last year ~4%
  • Government spending increased 16%
  • Channel inventory at 30-40 days, considered normal

Strategic Outlook

  • EV Business: EBITDA positive without PLI subsidies, focusing on scaling and localization
  • Farm Business: Shift to higher horsepower (40-50 HP now 69-70% of mix) driven by mechanization
  • Diversification: Growth Gems contributing significantly to group diversification
  • ROE Target: Maintaining 18% target despite achieving 23% in Q1
  • Execution Focus: Strong execution across businesses driving resilient performance

Management Participants

  • Dr. Anish Shah - Group CEO & MD
  • Mr. Rajesh Jejurikar - ED and CEO, Auto and Farm Sector
  • Mr. Amarjyoti Barua - Group CFO
  • Mr. Vinod Sahay - Head of Aerospace, Advanced Technology and Truck & Bus
  • Mr. Hemant Sikka - CEO, Logistics
  • Mr. Veejay Nakra - CEO, Farm Business
  • Mr. Amit Sinha - CEO, Lifespaces
  • Mr. Velusamy - CEO, Auto Business
  • Mr. Raul Rebello - CEO, Mahindra Finance