Mahindra & Mahindra Limited announced exceptional financial results for the third quarter ended 31st December 2025, demonstrating robust growth across all key business segments. The company's consolidated performance reflected significant improvements in revenue, profitability, and operational efficiency, with PAT growth of 54% excluding the impact of labour code regulation changes.

Financial Performance Overview

The company delivered outstanding consolidated results for Q3FY26, with substantial growth in both revenue and profitability metrics across all business segments.

For the nine-month period ended 31st December 2025, the company maintained its growth momentum with revenue from operations reaching ₹1,43,664 crores, representing a 23% increase from ₹1,16,612 crores in the corresponding period of the previous year. Net profit attributable to owners grew significantly to ₹12,431 crores.

Segment-wise Performance Analysis

All business segments demonstrated strong performance, with automotive leading the growth trajectory and services showing remarkable improvement.

The automotive segment achieved quarterly volumes of 302,000 units (including sales by LMM & MEAL), up 23%, with UV volumes reaching 179,000 units. The company maintained its #1 position in SUVs with revenue market share at 24.1%, up 90 basis points.

Market Leadership Positions

Mahindra & Mahindra strengthened its market leadership across multiple segments during Q3FY26.

Standalone Results and Key Metrics

The standalone financial results demonstrated equally strong performance, with revenue from operations reaching ₹38,942 crores in Q3FY26, compared to ₹30,964 crores in Q3FY25. Standalone PAT grew to ₹3,931 crores from ₹2,964 crores, representing a 33% increase.

Services Business Performance

The services segment delivered exceptional growth with PAT up 2x, driven by strong performance across all verticals. MMFSL reported AUM growth of 12% with PAT up 97%, while maintaining stable asset quality with GS3 below 4%. Tech Mahindra achieved EBIT margin of 13.1%, up 290 basis points. Growth gems showed breakout performance with Mahindra Logistics turning profitable after 11 quarters and Mahindra Lifespaces achieving 5x PAT growth.

Management Commentary and Outlook

Dr. Anish Shah, Group CEO & Managing Director, commented on the solid operating performance across the group, reflecting strong focus on growth coupled with disciplined execution. Mr. Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), highlighted the 90 basis points YoY increase in SUV revenue share and positive market response to new launches XEV 9S and XUV 7XO.

Exceptional Items and Regulatory Impact

The company recorded exceptional items related to the estimated incremental impact on retiral benefits following the Government of India's notification of four Labour Codes on November 21, 2025, consolidating 29 existing labour laws. The Board of Directors approved these unaudited financial results at their meeting held on 11th February 2026, complying with SEBI regulations.

Mahindra & Mahindra Limited has announced a significant strategic partnership through its listed subsidiary, Mahindra Lifespace Developers Limited (MLDL), which executed joint venture agreements with Mitsui Fudosan (Asia) Pte. Limited on February 9, 2026. The partnership involves the transfer of equity stake in MLDL's subsidiary for residential real estate development in Bengaluru.

Joint Venture Structure and Shareholding

Under the executed Shareholders Agreement and Investment Agreement, MLDL will transfer 49% equity stake in Mahindra Blossom Developers Limited (MBLDL) to Mitsui Fudosan (Asia) Pte. Limited (MFA). This transaction will result in MBLDL ceasing to be a wholly-owned subsidiary of MLDL, though it will continue as a subsidiary and remain a step-down subsidiary of Mahindra & Mahindra Limited.

Project Details and Asset Transfer

The joint venture centers around the development of the 'Alembic Undertaking', a residential real estate development project in Bengaluru. MLDL will transfer this undertaking, including all relevant assets and liabilities, to MBLDL as a going concern on a slump sale basis. The value of consideration, including relevant assets after deducting liabilities, aggregates to a net amount not exceeding Rs. 100 crores.

Financial Structure and Rights Issue

MBLDL will undertake a substantial rights issue to fund the project development. The company will issue 23,03,00,000 equity shares with a face value of Rs. 10 each, aggregating to Rs. 230,30,00,000. Both partners will subscribe to this rights issue maintaining their ownership ratio:

Corporate Governance and Board Composition

The joint venture agreement establishes a structured governance framework for MBLDL. The board composition will reflect the ownership structure, with MLDL having the right to nominate up to three directors, while MFA can nominate two directors. Additionally, an Independent Director or other director may be appointed as required under applicable laws and transaction documents.

Regulatory Compliance and Approvals

The transaction documents are subject to receipt of all necessary approvals, including shareholders' approval as required under applicable laws. The agreements comply with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and related provisions. The Business Transfer Agreement and Conveyance Deed are expected to be executed before March 31, 2026, or as mutually agreed between the parties.

Strategic Partnership Background

Mitsui Fudosan (Asia) Pte. Limited represents one of Japan's largest real estate developers with global presence. The partnership aims to provide operational flexibility, efficient management, sharp execution focus, and better monitoring of the residential project. This collaboration leverages MFA's international expertise in real estate development while maintaining MLDL's local market knowledge and project management capabilities.