M&M Q3 Preview: Profit may zoom up to 22% YoY to Rs 2,981 cr; Ebitda 39%

M&M Q3 Preview: Automobile giant Mahindra & Mahindra (M&M) will announce its December quarter of financial year 2025 (Q3FY25) results on Friday, February 7, 2025. 

 

M&M is expected to report strong performance for Q3FY25, driven by solid growth across its automotive and tractor segments. 

 

Analysts predict a revenue increase of approximately 21 per cent Y-o-Y, with a healthy rise in tractor revenues (up 26 per cent Y-o-Y) and automotive sales (up 19 per cent Y-o-Y). 

 

Earnings before interest, tax, depreciation and amortisation (Ebitda) is expected to grow around 39 per cent, benefiting from a better product mix and improved operating efficiencies. Positive responses to new model launches and higher tractor volumes are likely to contribute to margin expansion. 

 

Overall, M&M is on track to deliver a strong quarter with improved profitability across its business segments.

 

On the bourses, at 1:50 PM, M&M share price was trading 1.27 per cent higher at Rs 3,137.20 per share. In comparison, BSE Sensex was trading 0.49 per cent lower at 77,889.05.

 

Given this, here’s what top brokerage expect from M&M in Q3 results:

 

Nomura

 

Analysts at Nomura forecast a 21 per cent Y-o-Y increase in M&M's revenue for Q3FY25, driven by a 17 per cent Y-o-Y growth in automotive volumes and a 20 per cent Y-o-Y rise in tractor volumes.   ALSO READ: SBI Q3 results: Net profit rises 84% YoY to Rs 16,891 crore, NII up 4%

 

Ebitda is expected to rise 38 per cent Y-o-Y to Rs 4,478.7 crore, while PAT is predicted at Rs 2,879 crore, up 17 per cent Y-o-Y. 

 

Ebitda margin is expected to increase by 26bps Q-o-Q to 14.6 per cent. The overall revenue projection is Rs 30,689.3 crore.

 

Elara Capital

 

Elara Capital analysts expect Mahindra & Mahindra (M&M) to report a revenue of Rs 30,801.4 crore for Q3FY25. The growth is likely driven by strong responses to new model launches and an improved product mix. The Ebitda is forecasted at Rs 4,374 crore, while PAT is estimated at Rs 2,902 crore. 

Kotak Institutional Equities

 

Kotak Institutional Equities estimates M&M's revenues to rise 20.7 per cent Y-o-Y in Q3FY25, fuelled by a 18.3 per cent increase in volumes. Ebitda margin is expected to come in at 14.8 per cent, due to a richer segment mix and operating leverage benefits.

 

Thus, analyts project revenue to come in at Rs 30,519.7 crore, Ebitda is Rs 4,511.4 crore (up 39.4 per cent Y-o-Y), and adjusted PAT is Rs 2,980.8 crore, up 21.5 per cent Y-o-Y.