SML Mahindra Limited reported a net profit of ₹11.70 crore for the second quarter of fiscal year 2027, marking a 44% decline from the ₹21.05 crore recorded in the corresponding period last year. The commercial vehicle manufacturer also saw its EBITDA margin contract sharply to 4.22%.

The company logged revenue from operations of ₹669.79 crore in Q2FY27, an increase of 20.7% from ₹555.11 crore in Q2FY26. However, EBITDA stood at ₹28.30 crore, down from ₹42.20 crore in the year-ago quarter, resulting in an EBITDA margin of 4.22% compared to 7.6% in Q2FY26.

Financial Performance Overview

The company's profitability faced pressure due to higher input costs and operational expenses relative to revenue growth. While top-line figures expanded year-on-year, the bottom line contracted significantly. The half-year results for H1FY27 show a net profit of ₹75.32 crore, down from ₹88.01 crore in H1FY26, on total income of ₹1,630.12 crore.

Strategic Acquisition Approval

In a significant strategic move, the Board of Directors approved the acquisition of the Truck and Bus Division (MTBD Business Undertaking) from its holding company, Mahindra & Mahindra Limited (M&M). The transaction is structured as a slump sale under a Business Transfer Agreement entered into on August 5, 2026, for a consideration of ₹525 crore, subject to working capital adjustments.

The deal has received requisite shareholder approval under SEBI (LODR) Regulations, 2015, and other applicable provisions of the Companies Act, 2013. The transaction is expected to close on or before January 31, 2027, contingent upon customary closing conditions. No adjustments have been made to the current financial statements regarding this pending acquisition.

What the Numbers Show

A divergence is visible between the strong year-on-year revenue growth of 20.7% and the sharp decline in profitability metrics. The EBITDA margin contraction from 7.6% to 4.22% indicates that cost structures did not scale proportionally with sales volume, leading to significant margin compression. This trend was mirrored in the bottom line, with net profit falling 44% YoY.

Additionally, the balance sheet reflects a substantial reduction in current liabilities, with short-term borrowings dropping from ₹269.50 crore as of March 31, 2026, to ₹28.70 crore as of September 30, 2026. This deleveraging coincided with a significant decrease in trade receivables, which fell from ₹270.21 crore to ₹96.82 crore over the same period, suggesting improved collection efficiency or a shift in working capital management.

SML Mahindra Limited announced that Pushkar Parwardhan has resigned from his position as Chief Financial Officer and Key Managerial Personnel (KMP), effective October 19, 2026. The company has appointed Manaswini Goel as the interim CFO to bridge the transition period.

Leadership Transition Details

The resignation was intimated to stock exchanges under Regulation 30(5) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that the cessation of Parwardhan’s tenure is effective from the close of business on October 19, 2026.

To ensure continuity in financial reporting and compliance, the company’s Disclosure Committee revised its authorized KMP contact details effective October 20, 2026. The updated list of Key Managerial Personnel includes the interim leadership structure.

Updated Key Managerial Personnel

The following table outlines the current Key Managerial Personnel authorized under Regulation 30(5) of the SEBI Listing Regulations:

Compliance and Disclosure

SML Mahindra stated that this intimation is also being uploaded on the company's website for public record. The move ensures adherence to regulatory requirements regarding changes in key managerial personnel. The appointment of an interim CFO highlights the company's focus on maintaining uninterrupted financial governance during the executive transition.