The company had posted a net profit of Rs 662.15 crore in the corresponding period of the previous year.
The standalone net income during the period under review went up by 28.53% to Rs 10,774.28 crore from Rs 8,382.91 crore, Mahindra & Mahindra (M&M) said in a statement.
"The growth in profits of the company despite relentless increase in material costs is due to a good volume performance by automotive sector and tight control on expenses," the Mumbai-based company said.
During the quarter, the company sold 70,483 units in the passenger utility vehicle segment, registering a growth of 36% over the numbers sold in the same period last fiscal, it added.
"All the products of the entity's UV portfolio continued to do well," M&M said.
In the passenger car segment, the company sold 3,814 units of Verito. It also exported 6,500 units.
Talking about the tractor segment, M&M said the domestic market registered a moderate growth in the October-December quarter with sales growing by 3.9% over the year-ago period.
"In the quarter, the company sold 62,522 tractors under the Mahindra and Swaraj brands as against 62,342 tractors sold in the same period last year," it said, adding it exported 2,459 tractors in the same period.
Besides, the engine business revenue grew by 11% to Rs 222.10 crore as against Rs 200.10 crore in the same period last year.
The company's total expenses went up by 29.88% to Rs 9,741.99 crore from Rs 7,500.75 crore in the same period last fiscal.
Talking about the outlook, M&M said: "There has been a significant improvement in the macroeconomic environment in the last three months. Global risks to growth have abated for now, bringing considerable relief. Macroeconomic developments on the domestic front have also been equally encouraging."
Although several weaknesses like high fiscal and current account deficits, and subdued investment cycle still remain, the company's overall outlook on the economy is one of "cautious optimism", it added.
Shares of M&M were trading at Rs 882.15 apiece on BSE during late afternoon, 1.49% down from its last close.