Mahindra & Mahindra (M&M), one of India's leading automotive manufacturers, has reported robust financial results for the first quarter, while also addressing concerns about rare earth magnet supplies and reaffirming its SUV sales growth guidance.

Strong Financial Performance

M&M posted impressive numbers for Q1:

• Consolidated revenue stood at Rs 45,529.00 crore, up 22% year-over-year
• Consolidated profit after tax (PAT) reached Rs 4,083.00 crore, marking a 24% increase
• Earnings per share (EPS) rose to Rs 36.58, compared to Rs 29.44 in the same quarter last year

Automotive Segment Shines

The company's automotive division performed exceptionally well:

• SUV volumes grew by 22% year-over-year
• SUV revenue market share expanded by 570 basis points to 27.30%
• Automotive standalone PBIT (Profit Before Interest and Tax) margin, excluding e-SUV contract manufacturing, improved by 50 basis points to 10.00%

Farm Equipment Sector Shows Strength

M&M's farm equipment sector also demonstrated solid growth:

• Tractor volumes increased by 10% year-over-year
• Market share in tractors rose by 50 basis points to 45.20%, the highest ever in a quarter
• Farm standalone PBIT margin improved by 130 basis points to 19.80%

Executive Addresses Rare Earth Magnet Concerns

In a significant statement, a Mahindra & Mahindra executive confirmed that the company faces no production issues related to rare earth magnets. This assurance comes amid growing global concerns about the supply and pricing of these critical components used in electric vehicle motors and other high-tech applications.

SUV Sales Growth Guidance Maintained

The executive also reaffirmed the company's SUV sales growth guidance, projecting mid-to-high teens percentage growth. This positive outlook suggests continued momentum in M&M's automotive segment, particularly in the highly competitive SUV market.

Management Commentary

Dr. Anish Shah, Group CEO & Managing Director of M&M, commented on the results: "Q1 has been an excellent quarter, with broad-based growth across all our businesses. The operating excellence in our Auto and Farm businesses is evident in continued market share gains and margin expansion."

Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), added: "Our Auto and Farm businesses continue to lead with strong momentum in Q1, with gain of 570 bps YoY in SUV revenue share, and 340 bps YoY in LCV (< 3.5T) market share."

Looking Ahead

With strong Q1 results, reassurances on rare earth magnet supplies, and a positive outlook for SUV sales, Mahindra & Mahindra appears well-positioned for continued growth in the coming quarters. The company's performance in both automotive and farm equipment sectors, coupled with its strategic focus on SUVs, suggests a robust trajectory for the future.

Mahindra & Mahindra (M&M), one of India's leading automotive and farm equipment manufacturers, has reported a strong financial performance for the first quarter of fiscal year 2026, with significant growth across key business segments.

Impressive Financial Results

The company's consolidated net profit for Q1 FY26 jumped 24% year-on-year to Rs 4,083.00 crore, up from Rs 3,283.00 crore in the same period last year. This impressive growth was accompanied by a 22% increase in consolidated revenue, which reached Rs 45,436.00 crore compared to Rs 37,010.00 crore in Q1 FY25.

Stellar Performance in Auto and Farm Sectors

M&M's auto and farm equipment sectors continued to be the primary drivers of growth:

• Automotive Segment: The company achieved the top position in the SUV segment with a 27.3% revenue market share, representing a significant increase of 570 basis points. SUV volumes grew by 22%.
• Farm Equipment: M&M maintained its leadership in the tractor segment with a 45.2% market share, up by 50 basis points.

Strong Market Position Across Segments

The company demonstrated its market strength across various segments:

• Light Commercial Vehicles (LCV): M&M led the LCV segment with a 54.2% market share, an increase of 340 basis points.
• Electric 3-wheelers: The company captured a 38.7% market share in this growing segment.

Segment-wise Performance

Management Commentary

Dr. Anish Shah, Group CEO & Managing Director of M&M, stated, "Q1 F26 has been an excellent quarter, with broad-based growth across all our businesses. The operating excellence in our Auto and Farm businesses is evident in continued market share gains and margin expansion."

Mr. Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), added, "Our Auto and Farm businesses continue to lead with strong momentum in Q1 F26, with gain of 570 bps YoY in SUV revenue share, and 340 bps YoY in LCV (< 3.5T) market share. In Tractors, we gained 50 bps YoY to reach 45.2% market share, the highest ever in a quarter."

Financial Services and Other Businesses

Mahindra & Mahindra Financial Services Limited (MMFSL) reported a 15% growth in Assets Under Management (AUM), with Gross Stage 3 (GS3) maintained below 4%. Tech Mahindra showed improvement in EBIT margin, which increased by 260 basis points.

Outlook

With strong performance across its core businesses and growth in emerging sectors like electric vehicles, Mahindra & Mahindra appears well-positioned for continued success in the coming quarters. The company's focus on market leadership and operational excellence is likely to drive further growth and profitability.

As M&M continues to strengthen its position in the automotive and farm equipment sectors while expanding into new areas, investors and industry observers will be keenly watching the company's future moves and strategies in the evolving Indian market.