Mahindra EV biz posts ₹111 crore Q1 EBITDA, awaits PLI nod for XUV9e

Strong demand for electric SUVs boosts Mahindra's EV business to Rs 111 crore EBITDA in Q1FY26; company awaits PLI certificate and ramps up production gradually

Mahindra Electric Automobile (MEAL) has posted earnings before interest, taxes, depreciation and amortisation (EBITDA) of ₹90 crore in the first quarter of FY26, with a resultant EBITDA margin of 2.9 per cent, driven by strong demand for its newly launched electric SUVs.

 

Revenue touched ₹3,068 crore in Q1FY26, and the company reported a loss before tax of ₹108 crore. Including battery electric vehicle (BEV) contract manufacturing at Mahindra & Mahindra’s Chakan plant for MEAL, the overall EBITDA for the EV business comes to ₹111 crore, with a loss before tax of ₹101 crore.

 

M&M’s electric SUVs captured a 44.3 per cent revenue market share in Q1 and a 40.9 per cent revenue share in the overall electric vehicle market. In terms of volumes, M&M held a 31.8 per cent market share in electric SUVs in Q1FY26 — a sharp rise from 6.3 per cent in Q1FY25. EV penetration in M&M’s overall sales touched 7.8 per cent, compared to the industry level of 5.6 per cent.

 

Rajesh Jejurikar, executive director and chief executive officer of the auto and farm sector, M&M, said the EV business’s EBITDA figures did not include any production-linked incentive (PLI) benefits. 

 

“We have qualified for PLI for the XUV9e and we are waiting for the final technical audit certification, which should come around Q2FY26 or Q3FY26,” he said, adding that the company will apply for PLI benefits for the BE6 around Q4. Approvals typically take around three months.

 

The company also said it was “comfortably” covered on the rare-earth magnet issue. “We have had no production disruptions because of that. We have taken a series of actions, including around inventory, and we are covered comfortably at least till the fourth quarter. We have also taken measures such as substituting rare earth with light earth and other materials,” Jejurikar told reporters after the quarterly results.

 

He clarified that the company had not yet finalised the location for its upcoming greenfield plant. Mahindra currently has capacity to produce 55,000 internal combustion engine (ICE) vehicles a month, of which it is producing around 40,000 units, or 80 per cent of capacity. For EVs, monthly production stands at around 4,000 units, which will be gradually ramped up.