M&M Q3 results: Profit climbs 20% to Rs 3,181 cr, driven by SUV demand

M&M Q3 FY25 results: Revenue up 18% to Rs 41,464.98 crore, led by demand for SUVs and tractors

Automaker Mahindra & Mahindra (M&M) on Friday reported a 19.6 per cent rise in consolidated net profit at Rs 3,180.58 crore for the third quarter (Q3) of the financial year 2024-25 (FY25), from Rs 2,658.40 crore reported during the same period last year. This growth was driven largely by strong demand for its sport utility vehicles (SUV) and tractors.

 

Consolidated revenue from operations rose by 17.7 per cent year-on-yar (Y-o-Y) to Rs  41,464.98 crore from Rs 35,218.32 crore. 

The company’s consolidated profit, includes financial services, IT, hospitality, and other businesses. 

On a standalone basis M&M posted a 19 per cent increase in its third-quarter profit. The automaker, which leads India's SUV market by revenue, reported a profit of Rs 2,964 crore, up from Rs 2,490 crore in the same period last year.

     

SUV and tractor sales drive growth

Mahindra's SUV volumes grew by 20 per cent during the quarter, boosted by strong demand for models such as the XUV 3x0 and the newly launched five-door variant of the Thar. Despite a challenging year for Indian carmakers, the company has sustained strong demand across its vehicle lineup.

 

The tractor segment, which is more profitable than Mahindra's automotive division, also saw a 20 per cent increase in sales. Rising farm incomes have played a crucial role in boosting demand for tractors, further strengthening Mahindra’s position in the agricultural machinery market.  READ: Mazagon Dock Shipbuilders Q3FY25: Net profit rises 30% to Rs 768 crore

 

As a result, the company’s overall volumes rose 17 per cent, pushing its revenue up.

 

Improved margins and consolidated growth

Mahindra's operating margin improved to 15.5%, up from 14.2% in the previous year, mainly due to the higher profitability of its tractor business.

 

The company’s consolidated profit, includes financial services, IT, hospitality, and other businesses.  Shares of M&M were trading at Rs 3,199.05 on the BSE, up more than 2 per cent nearly 3 per cent at 1 pm after the Q3FY25 financial results were released.