Mahindra & Mahindra Reports 25% Rise in Q2 Net Profit as SUV Growth Offsets Farm Sector Slowdown

Mahindra & Mahindra (M&M) reported a consolidated net profit attributable to shareholders of ₹4,588 crore for the second quarter of FY27, marking a 24.9 per cent rise from ₹3,673 crore in the corresponding period previous year. Consolidated revenue from operations grew 25 per cent to ₹57,553 crore, compared to ₹46,106 crore a year earlier.

The quarterly financial results highlighted a distinct divide between the company's two primary operational segments. Automobile profit after tax surged 55 per cent to ₹2,388 crore, supported by a 39 per cent increase in automotive revenue to ₹37,756 crore. Automobile volumes rose 26 per cent to 3.31 lakh vehicles, with the company recording an SUV revenue market share of 24.3 per cent and an electric SUV revenue market share of 30.1 per cent during the September quarter. Conversely, farm profit declined 9 per cent to ₹1,053 crore, while farm revenue fell 6 per cent to ₹9,572 crore as tractor volumes decreased 6 per cent to 1.16 lakh units.

To support future growth, M&M more than doubled its first-half capital expenditure to ₹5,196 crore, aimed at expanding SUV and electric vehicle manufacturing capacity. The company lowered its tractor industry growth forecast from 5 per cent to flat growth, and management expects farm margin pressure to persist into the third quarter before normalizing in FY28. Meanwhile, the automaker plans to scale monthly automobile manufacturing capacity from 64,500 vehicles at the end of FY26 to approximately 1.32 lakh by FY31, with capacity reaching 82,000 vehicles by the end of FY27.

The company's expansion plans include five upcoming product launches through June 2027, covering conventional and electric SUVs, a lifestyle SUV, a refresh, and a light commercial vehicle. M&M also plans to expand its Charge_IN highway network from 59 ultrafast charging stations to 250 by December 2027. First-half net cash generation rose 81 per cent to ₹7,446 crore, providing financial backing for the capital expenditure programme.

Other group companies contributed positively to the consolidated performance. Mahindra Finance reported a 61 per cent profit growth alongside a 15 per cent rise in assets under management. Tech Mahindra posted a 33 per cent profit increase with an EBIT margin of 14.8 per cent, while Mahindra Logistics registered a 24 per cent revenue increase to ₹2,095 crore. Overall services revenue rose 18 per cent to ₹11,821 crore.

"Mahindra & Mahindra's latest financial results demonstrate how a strong product portfolio in the SUV segment can effectively cushion a business against headwinds in cyclical sectors like agriculture. Doubling capital expenditure to expand electric vehicle and SUV capacity shows clear long-term strategic intent, but execution efficiency will be critical. As competition intensifies and farm sector margins remain under pressure, balancing aggressive manufacturing scale-up with strict cost discipline will determine sustained profitability." — Dr. Shishir Gupta, Founder & CEO, StartupLanes