Mahindra & Mahindra (M&M) reported a strong set of consolidated financial results for the September 2026 quarter, with net profit increasing 25% year on year to ₹4,588 crore and revenue growing at a similar pace. The performance was supported by strong demand for SUVs, electric vehicles and commercial vehicles, alongside growth in the company’s financial services and technology businesses. Following the earnings announcement on November 5, M&M shares gained nearly 5%, with intraday gains exceeding 6% in market trading.
The results demonstrate the strength of M&M’s diversified business portfolio, although not every segment delivered growth. Its automotive business was the primary growth driver, while the farm equipment division faced weaker tractor volumes and lower revenue. Higher commodity prices also affected operating margins in the automotive and farm businesses. Nevertheless, growth in consolidated earnings and continued market leadership in SUVs helped improve investor sentiment.
M&M Q2 FY27 Results: Revenue and Profit Both Rise 25%
Mahindra & Mahindra reported consolidated net profit of ₹4,588 crore for the second quarter of FY27, compared with ₹3,673 crore in the corresponding quarter of the previous financial year.
Consolidated revenue reached approximately ₹57,553 crore, representing 25% growth year on year, according to the company’s financial results announcement.
| Financial metric | Q2 FY27 | Q2 FY26 | Growth |
|---|---|---|---|
| Consolidated revenue | ₹57,553 crore | ₹46,106 crore | 25% |
| Consolidated net profit | ₹4,588 crore | ₹3,673 crore | 25% |
| Standalone revenue | ₹44,282 crore | ₹35,080 crore | 26% |
| Standalone net profit | ₹5,102 crore | ₹4,521 crore | 13% |
| Return on equity | 21% | — | — |
The consolidated figures include the performance of M&M’s subsidiaries and other businesses, while standalone figures represent the parent company’s individual financial performance.
The company also reported consolidated revenue of ₹1,15,741 crore for the first half of FY27, with net profit reaching ₹10,042 crore.
The results indicate that earnings growth has remained strong despite higher operating costs and uneven performance across business segments.
Automotive Business Drives Growth With 39% Revenue Increase
M&M’s automotive business was the biggest contributor to the quarterly performance.
Consolidated automotive revenue increased 39% year on year to ₹37,756 crore. The business reported a consolidated profit before interest and tax (PBIT) of ₹3,319 crore, compared with ₹2,538 crore a year earlier.
Vehicle volumes increased 26% to approximately 3.31 lakh units during the quarter.
SUVs remained particularly important to the company’s performance. Utility vehicle volumes reached 1.83 lakh units, increasing 26% year on year.
M&M also reported an SUV revenue market share of 24.3%, maintaining its position among India’s leading SUV manufacturers.
The company’s product portfolio includes popular models such as the Scorpio, XUV700, Thar, Bolero and XUV 3XO. Continued demand across these models has supported its passenger vehicle business.
The automotive division also benefited from increasing electric vehicle sales. M&M reported an electric SUV revenue market share of 30.1%, while its electric three-wheeler business maintained a 36.2% market share.
These figures highlight the company’s growing presence in both conventional SUVs and electric mobility.
Electric Vehicles Strengthen Mahindra’s Market Position
Electric vehicles are becoming an increasingly important part of M&M’s long-term automotive strategy.
The company has been expanding its electric SUV portfolio under the Mahindra Electric Automobile Limited business, with models designed to compete in India’s growing electric passenger vehicle market.
Its reported 30.1% revenue market share in electric SUVs indicates that the company has established a significant position in the segment.
M&M is also investing in electric vehicle platforms, battery technology, software and manufacturing capabilities to support future launches.
The electric three-wheeler business provides another growth opportunity, particularly as commercial operators and urban transport providers explore alternatives to conventional fuel-powered vehicles.
However, the EV business also requires substantial investment in product development, manufacturing capacity, charging-related partnerships and customer support infrastructure.
The company’s ability to maintain market share while improving the profitability of electric vehicles will be important over the coming quarters.
Farm Equipment Business Faces Pressure From Lower Tractor Volumes
Unlike the automotive division, M&M’s farm equipment business recorded a weaker quarter.
Consolidated revenue from the farm equipment segment declined 6% year on year to ₹9,572 crore. Consolidated profit after tax attributable to the segment also declined 9% to ₹1,053 crore.
Tractor volumes fell 6% to approximately 1.16 lakh units.
The company attributed part of the weakness to a shift in the festive calendar, which affected the timing of demand and sales.
M&M retained a 41.5% market share in the tractor industry, maintaining its leading position in the domestic market.
The company expects the Indian tractor industry to grow at a mid-single-digit pace in FY27.
Farm equipment demand is influenced by several factors, including monsoon performance, agricultural income, crop prices, rural liquidity and government support for farmers.
A recovery in rural demand could support tractor sales in the coming quarters, although commodity prices and operating costs remain important factors for profitability.
Mahindra Finance and Tech Mahindra Add to Group Performance
M&M’s diversified business portfolio also benefited from growth in its financial services and technology operations.
Mahindra Finance reported a 15% increase in assets under management (AUM), indicating continued expansion in its lending business. Its profit attributable to M&M increased 61% year on year.
The company reported a gross stage-three asset ratio of 3.42%, an indicator used to measure the proportion of loans classified as impaired under the applicable accounting framework.
Tech Mahindra also delivered stronger results, with profit attributable to M&M increasing 33%. Its EBIT margin improved to 14.8%, expanding by 260 basis points.
Other businesses also contributed to the group’s performance:
- Mahindra Lifespaces: Residential pre-sales increased 41% to approximately ₹1,100 crore.
- Mahindra Logistics: Revenue reached ₹2,095 crore, increasing 24%, while profit improved substantially.
- Mahindra Holidays: The company reported 5,762 room keys and occupancy of 76%, up 220 basis points.
- Growth Gems: The portfolio of emerging businesses recorded approximately threefold growth in profit attributable to M&M.
Together, the services businesses generated consolidated revenue of ₹11,821 crore, increasing 18% year on year.
Higher Commodity Prices Affect Operating Margins
Despite strong revenue and profit growth, M&M faced pressure from rising commodity costs.
The company’s standalone automotive EBITDA increased just 4% year on year to ₹6,718 crore, while standalone revenue grew 26% to ₹44,282 crore.
This difference indicates that operating expenses increased faster than revenue.
Standalone EBITDA margin declined to approximately 15.2% from 18.4% in the year-ago quarter.
The automotive standalone PBIT margin also declined to 7.7% from 9.2%.
In the farm equipment business, standalone PBIT margin fell to 16.8% from 19.7%.
However, the company reported sequential improvement in its consolidated automotive PBIT margin, which increased to 8.8% from 7.7% in the June 2026 quarter.
M&M said its businesses continued to take measures to manage macroeconomic volatility and commodity price increases.
The margin performance will remain important because sustained increases in steel, aluminium and other manufacturing inputs can affect vehicle production costs and profitability.
Why M&M Shares Gained Nearly 5%
M&M shares rallied following the September-quarter earnings announcement, with the stock gaining nearly 5% and rising more than 6% during intraday trading.
Investor sentiment was supported by several factors:
- Strong consolidated earnings: Net profit increased 25% year on year.
- SUV market leadership: The company maintained a 24.3% SUV revenue market share.
- Automotive growth: Automotive revenue increased 39%.
- EV momentum: M&M maintained significant market shares in electric SUVs and electric three-wheelers.
- Diversified earnings: Financial services, technology and other businesses contributed to group profitability.
However, the rally came despite margin pressure and weaker farm equipment performance.
The market’s reaction suggests that investors placed considerable emphasis on the company’s overall earnings growth and automotive performance.
The Bigger Picture: M&M Is Building a Diversified Mobility and Technology Business
Mahindra & Mahindra is gradually expanding beyond its traditional identity as an automotive and tractor manufacturer.
Its business portfolio now includes passenger vehicles, electric mobility, commercial vehicles, financial services, technology, logistics, real estate and hospitality.
This diversification provides multiple sources of revenue and reduces the company’s dependence on any single business segment.
The automotive division is benefiting from India’s SUV demand and the gradual adoption of electric vehicles, while financial services and technology businesses provide additional earnings contributions.
However, the company must balance investments in future mobility technologies with the need to protect operating margins. The farm equipment business also remains sensitive to rural economic conditions.
Looking Ahead
M&M enters the second half of FY27 with strong automotive momentum, growing electric vehicle market share and a diversified group earnings base. The company expects the tractor industry to expand at a mid-single-digit pace during the financial year, while its SUV and electric vehicle businesses remain important growth drivers. Its ability to manage commodity inflation and improve operating margins will be essential to sustaining earnings growth.
Investors will closely monitor SUV demand, EV sales, tractor volumes and the performance of Mahindra Finance and Tech Mahindra in upcoming quarters. The September results demonstrate that M&M can generate strong consolidated earnings growth despite uneven performance across its businesses. Whether it can sustain this momentum will depend on consumer demand, rural market recovery, cost management and successful execution of its electric mobility strategy.
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