M&M Q4FY26 results: PAT up 42% on strong momentum across businesses

Mahindra & Mahindra reports a 42% rise in Q4 PAT to Rs 4,668 crore, driven by strong performance in auto, farm and services businesses, alongside steady growth in EVs

Mahindra and Mahindra (M&M) posted a 42 per cent year-on-year (Y-o-Y) rise in consolidated profit after tax (PAT) to ₹4,668 crore in the fourth quarter of financial year 2025-26 (Q4FY26), driven by a 29 per cent increase in revenue to ₹54,982 crore.

 

For the full financial year, revenue rose 25 per cent to ₹1.98 trillion, while PAT grew 32 per cent to ₹17,099 crore. The stock gained 3.85 per cent on the BSE following the results.

 

“Given strong momentum across our businesses, a robust foundation, and disciplined capital allocation, we are well-positioned to accelerate growth and capture emerging opportunities, even in an uncertain environment,” said Anish Shah, group managing director and chief executive officer (MD&CEO).

 

 

The auto business emerged as the primary growth driver, delivering strong gains in volumes, market share, and profitability, while also scaling up its electric vehicle (EV) portfolio. Sport Utility Vehicle (SUV) volumes reached 660,000 units during the year, with revenue market share rising to 25.3 per cent, reinforcing the company’s leadership position.

 

Rajesh Jejurikar, executive director (ED) and CEO (auto and farm sector), said: “We continue to be the number one in SUV revenue market share.”

 

Growth was supported by a strong product cycle, with recent launches witnessing robust traction. “The SUV 7XO has achieved a very good and strong launch… feedback from customers continues to be very strong,” he added.

 

EVs are now contributing meaningfully to both growth and profitability. The company has sold 55,000 electric SUVs since launch, and continues to lead in value terms. “We rank number one in revenue market share in electric SUV and have a penetration of 9.6 per cent in M&M portfolio, much higher than the industry average,” Jejurikar said.

 

Importantly, EVs have turned profitable at a consolidated level, with the electric SUV business delivering a profit of ₹523 crore and PBIT (profit before interest and taxes) of ₹227 crore, reflecting operating leverage and improving scale. Auto margins remained healthy, with standalone margins at 10.9 per cent excluding EVs, underscoring strong execution in the core ICE (internal combustion engine) portfolio.

 

The farm machinery business delivered robust performance, supported by strong domestic demand, even as global markets remained weak. In Q4FY26, the segment reported strong growth, while margins remained resilient, with tractor margins at 20.54 per cent for the quarter. Operationally, the business is being strengthened through product upgrades and portfolio rationalisation.

 

Jejurikar said the company has exited its stake in Sampo, initiated the liquidation of its Mitsubishi agricultural machinery business in Japan, and, with these restructuring actions, now sees a clear path to profitability in its international farm operations. This comes despite continued weakness in key overseas markets such as the US, Brazil, and Turkey, with the latter witnessing a sharp industry decline.

 

Financial services remained stable with a clear focus on asset quality and calibrated growth. “Our book is 99 per cent secured, and we have taken a number of actions to enhance asset quality,” Shah said, highlighting a more resilient portfolio structure. Microfinance is expected to continue scaling up, supported by improved collections and technology-led efficiencies.

 

The services businesses also delivered a strong performance. Consolidated Q4 revenue stood at ₹12,147 crore, up 23 per cent, while PAT rose 64 per cent to ₹1,348 crore. For FY26, revenue grew 17 per cent to ₹43,698 crore and PAT increased 54 per cent to ₹4,960 crore. Within this, M&M Financial Services reported a 12 per cent rise in AUM (assets under management) at the end of Q4, with GS3 (gross stage 3 assets) at 3.41 per cent. Tech Mahindra saw Q4 EBIT (earnings before interest and taxes) margin expand by 326 basis points (bps). Mahindra Lifespaces recorded residential presales of ₹1,633 crore, up 55 per cent, while Club Mahindra reported resort revenue of ₹120 crore, up 11 per cent, alongside an 83 per cent increase in average unit realisation and an expansion in room inventory to 6,228 keys. Mahindra Logistics posted Q4 revenue of ₹1,791 crore, up 14 per cent, and achieved profitability for the full year. 

 

AI to drive ₹4,100 cr revenue boost in auto

 

Anish Shah said artificial intelligence (AI) is now delivering measurable outcomes across the group, and is embedded into core operations. In the auto business, AI-led initiatives are expected to generate about ₹4,100 crore in revenue impact, alongside a 2-3 percentage point improvement in customer satisfaction and a roughly 10 per cent reduction in product development time. In financial services, the group is targeting an incremental ₹10,000 crore in disbursements, a 20 per cent increase in funnel conversions, 80 per cent digital onboarding, and 75 per cent AI-assisted collections. Shah said AI is also improving fraud detection, portfolio quality, and customer engagement, underpinned by strong governance and ethical deployment. “We are seeing real benefits on a day-to-day basis,” he said, noting that AI initiatives are being tracked with clear financial targets rather than being treated as pilots. He outlined a three-tier approach — deploy, transform, and invent — spanning quick efficiency gains to large-scale business process re-engineering, and new product development.

 

M&M expands FY27 capacity to 68,000 units/month

 

Rajesh Jejurikar outlined a calibrated but steady capacity expansion plan, aligned with the company’s product pipeline and demand outlook. The auto business exited FY25 with a monthly capacity of about 59,000 units, comprising 54,000 ICE SUVs and 5,000 EVs. This has already been ramped up to roughly 64,500 units as the company entered FY27, with EV capacity increased to 8,000 units per month.

 

In the first half of FY27, ICE capacity is expected to rise further to 60,000 units per month, taking total operational capacity to about 68,000 units, while EV capacity remains at current levels. A more meaningful expansion is planned toward FY28, with an additional 10,000 units of ICE capacity and 4,000 units of EV capacity to support upcoming product launches.

 

Beyond this, Mahindra is progressing on its greenfield facility in Nagpur, which is expected to be operational around mid-2028. The plant will be scaled up in phases to a capacity of 500,000 units annually. Jejurikar indicated that capacity additions remain tightly aligned to demand, with EV rampup tracking product launches and utilisation levels rather than frontloading investments.