SUV, tractor fire up M&M earnings, Q4 PAT up 20% at Rs 3,295 crore

Company plans greenfield PV plant by FY28 as SUV capacity runs past 90%

Mahindra & Mahindra (M&M) posted strong double-digit growth in consolidated revenue and profit after tax (PAT) in the fourth quarter (Q4) of 2024–25 (FY25), driven by an 18 per cent rise in sport utility vehicle (SUV) sales and a 23 per cent jump in tractor sales.

 

M&M’s consolidated PAT for Q4FY25 came in at ₹3,295 crore, up 20 per cent year-on-year (Y-o-Y), while revenue from operations rose 20 per cent Y-o-Y to ₹42,599 crore.

 

The stock was up 3 per cent in afternoon trade on the BSE.

 

For the full year, revenue rose 14 per cent to ₹1,59,211 crore, while PAT grew 15 per cent to ₹12,929 crore. Sequentially, revenue increased 2.7 per cent in Q4FY25, while PAT was up 3.6 per cent.

 

 

Buoyed up by strong demand for its vehicles, the company now plans to set up a greenfield manufacturing facility for passenger vehicles (PVs) by 2027-28. Without disclosing the location or capacity of the upcoming plant, Rajesh Jejurikar, executive director and chief executive officer (auto and farm sectors), M&M, said SUV capacity utilisation is already over 90 per cent.

 

“We have not finalised the exact capacity addition, and that's a work in progress... But with the new products we are planning to launch by 2030, it is clear we will need additional capacity,” he told reporters.

 

M&M currently has an SUV capacity of 54,000 units per month, which can be expanded to 67,000 units per month by 2026-27 (FY27). 

 

The company also plans to introduce a new platform on August 15. It has outlined a capital expenditure plan of ₹27,000 crore for the automotive business between FY25 and FY27, as it prepares to launch nine internal combustion engine (ICE) SUVs, seven born electric vehicles (BEVs), and seven light commercial vehicles.

 

Last year, the M&M board approved an investment of ₹12,000 crore in its EV arm, Mahindra Electric Automobile (MEAL), to fund its EV journey over the next three years. In 2025-26 (FY26), M&M will launch three ICE SUVs (including mid-cycle enhancements) and two BEVs.

 

Speaking on the overall performance, Anish Shah, group CEO and managing director, M&M, said the automotive and farm businesses continue to gain market share and improve profitability.

 

“Tech Mahindra (TechM) is making commendable progress towards its dual objectives of strengthening client positioning and margin expansion. M&M Financial Services (MMFSL) has maintained Gross Stage 3 under 4 per cent as committed, remains focused on controls, and has delivered 33 per cent growth in profits,” he said.

 

Shah added that the group has set a target of creating $2–3 billion in valuation for each of its ‘scalable growth gems’, which include its Logistics, Hospitality, Real Estate, Last Mile Mobility, Susten (renewable energy), and Truck and Bus businesses.

 

Terming it an “excellent year”, M&M Group Chief Financial Officer Amarjyoti Barua said: “Our results include nearly ₹10,000 crore of cash generation in FY25, which gives us the ability to continue driving value for our shareholders through strategic investments.” M&M has announced a 20 per cent increase in dividend for FY26.

 

The company has taken write-downs to reduce losses in two of its international farm subsidiaries — Sampo Rosenlew Oy in Finland and Mitsubishi Mahindra Agricultural Machinery Co. in Japan.

 

As for segment-wise performance, automotive sector volumes (including Last Mile Mobility and MEAL) were up 18 per cent in Q4, with utility vehicle (UV) sales at 1,49,000 units. M&M’s revenue market share in the automotive segment stood at 23.5 per cent, up 310 basis points (bps). FY25 volumes rose 14 per cent overall, with UV volumes growing 20 per cent. Around 6,300 electric SUVs have been delivered since March.

 

The automotive division posted consolidated revenue of ₹25,902 crore in Q4, up 24 per cent, while PAT rose 27 per cent to ₹1,715 crore. For FY25, automotive revenue rose 19 per cent and PAT increased 25 per cent.

 

In the farm sector, Q4 consolidated revenue rose 17 per cent to ₹7,933 crore, while PAT grew 29 per cent to ₹758 crore. For FY25, both farm revenue and PAT were up 6 per cent.

 

The company reported its highest-ever full-year market share in the tractor segment, reaching 43.3 per cent — an increase of 170 bps.

 

The services vertical posted a 12 per cent rise in revenue to ₹9,914 crore for Q4FY25, with MMFSL ending the quarter with a 17 per cent increase in assets under management. TechM’s earnings before interest and tax margin improved by 310 bps. Mahindra Lifespaces’ Q4 residential pre-sales of ₹1,055 crore were down 3 per cent. Mahindra Logistics’ Q4 revenue rose 8 per cent to ₹1,570 crore.