Financial Performance Highlights (FY 2025-26 vs FY 2024-25)

  • Sales Volume: 16,632 vehicles (14,221 vehicles) - 17% growth
  • Net Revenue from Operations: ₹2,837.92 crores (₹2,398.99 crores)
  • Profit Before Tax: ₹213.95 crores (₹162.38 crores) - 31.7% growth
  • Profit After Tax: ₹159.75 crores (₹121.67 crores) - 31.3% growth
  • Total Comprehensive Income: ₹162.73 crores (₹120.23 crores)
  • Earnings Per Share: ₹110.39 (₹84.08)
  • Dividend Recommended: Final dividend of 235% (₹23.50 per share) vs previous 180% (₹18.00 per share)
  • Total Dividend Outgo: ₹34.01 crores (₹26.05 crores)

Material Events and Changes

Change in Ownership and Control

  • Mahindra & Mahindra Limited acquired 58.96% controlling stake effective 1st August 2025 through purchase of 63,62,306 shares (43.96%) from Sumitomo Corporation and 21,70,747 shares (15.00%) from Isuzu Motors Limited
  • M&M became holding company with 58.97% stake as of 31st March 2026, while Sumitomo Corporation ceased to be promoter
  • Shareholders approved name change from SML Isuzu Limited to SML Mahindra Limited on 26th September 2025

Board Composition and Management Changes

Resignations (effective 1st August 2025): Directors from Sumitomo and Isuzu, along with Independent Directors

New Appointments: Mr. Vinod Kumar Sahay as Executive Chairman, Dr. Venkataraman Srinivas as Executive Director & CEO, and new Independent Directors

Key Managerial Changes: Mr. Rakesh Bhalla resigned as CFO, replaced by Mr. Pushkar Patwardhan from 1st October 2025

Credit Rating and Financial Position

  • ICRA upgraded long-term rating from AA- to AA+ with stable outlook, reaffirmed short-term rating at A1+
  • Net Worth: ₹519.34 crores (₹382.66 crores)
  • Borrowings: ₹280.15 crores (₹321.73 crores)
  • Key Ratios Improvement: Interest Coverage Ratio: 13.82 (8.05), Debt Equity Ratio: 0.54 (0.84)

Contingent Liabilities and Commitments

  • Civil matters: ₹278.39 crore (previous year: ₹260.57 crore)
  • Income tax matters: ₹896.38 crore (previous year: ₹1,721.11 crore)
  • Sales tax and GST matters: ₹184.67 crore (previous year: ₹306.04 crore)
  • Capital commitments: ₹420.48 crore as at 31 March 2026 (previous year: ₹207.90 crore)
  • Management does not expect material adverse impact from these proceedings

Regulatory and Compliance Matters

  • Statutory auditors changed from Walker Chandiok to B S R & Co. LLP due to conflict of interest post-acquisition
  • Environment Protection Rules 2025 effective from 1 April 2025, impact not yet quantifiable
  • Four labour codes notified on 21 November 2025, incremental impact on retiral benefits estimated at ₹5.47 crore
  • All related party transactions conducted at arm's length basis

Dividend Distribution and AGM Details

  • Final dividend of 235% (₹23.50 per equity share) recommended with record date: 3rd July 2026
  • 42nd Annual General Meeting on 21st July 2026 through Video Conferencing
  • CSR expenditure: ₹138.52 lakhs against obligation of ₹138.09 lakhs

Operational Performance

Segment-wise Sales: Passenger vehicles (buses): 11,220 vehicles; Cargo vehicles (trucks): 5,412 vehicles

Revenue Breakdown: Sale of vehicles: ₹2,661.3 crores; Sale of spare parts: ₹157.6 crores

Employee Benefits: Gratuity liability of ₹78.74 crore; Defined benefit obligation of ₹681.59 crore

Risk Management

  • Foreign currency risk: Net exposure of ₹81.60 crore in USD assets
  • Interest rate risk: ₹277.95 crore variable rate borrowings
  • Credit risk: Trade receivables of ₹270.21 crore with expected credit loss allowance of ₹3.10 crore
  • Liquidity risk: Working capital limits of ₹550.00 crore, utilized ₹216.27 crore