SML Mahindra Limited has delivered exceptional financial performance in the third quarter of FY26, reporting a remarkable turnaround in profitability. The commercial vehicle manufacturer announced its unaudited financial results for the quarter ended December 31, 2025, showcasing significant growth across key financial metrics.

Outstanding Q3FY26 Financial Performance

The company's financial results for Q3FY26 demonstrate exceptional operational efficiency and market performance. The quarter-on-quarter comparison reveals sustained growth momentum despite seasonal variations, with notable improvements in profitability metrics.

Enhanced Operational Efficiency and Margin Expansion

The company demonstrated significant operational improvements with EBITDA growing substantially to ₹41.40 crores compared to ₹18.40 crores in the corresponding quarter of the previous year. The EBITDA margin expanded to 7.68% from 5.54%, reflecting improved operational efficiency and better cost management strategies.

Cost of materials consumed stood at ₹496.57 crores, while employee benefits expense reached ₹59.17 crores. Finance costs decreased significantly to ₹5.79 crores in Q3FY26 compared to ₹7.10 crores in Q3FY25, indicating improved financial management.

Nine-Month Performance Highlights

The company's nine-month performance for the period ended December 31, 2025, reflects consistent operational excellence and strategic execution. Total comprehensive income for the nine-month period reached ₹105.79 crores compared to ₹68.52 crores in the corresponding period of the previous year.

Regulatory Compliance and Corporate Governance

The Board of Directors approved the unaudited financial results during their meeting held on January 16, 2026, in Chandigarh. The meeting commenced at 4:15 PM and concluded at 4:45 PM, with the Audit Committee reviewing and recommending the results prior to board approval.

The financial results have been prepared in accordance with Indian Accounting Standard 34 and comply with SEBI listing regulations. The statutory auditors B S R & Co. LLP have issued an unmodified review conclusion on the unaudited financial results.

Key Financial Metrics and Capital Structure

The company maintains a stable capital structure with paid-up equity share capital of ₹14.48 crores, consisting of shares with a face value of ₹10 each. Other equity stood at ₹368.18 crores as of March 31, 2025, providing a strong financial foundation for future growth initiatives.

Tax expenses for Q3FY26 included current tax of ₹6.01 crores and a deferred tax benefit of ₹0.03 crores, resulting in effective tax management for the quarter.

SML Mahindra Limited has delivered strong operational performance in December 2025, showcasing significant growth in production and sales of commercial vehicles. The company's monthly report reveals substantial improvements across key business metrics compared to the corresponding period in the previous year.

Production Performance Shows Robust Growth

The company's production capabilities demonstrated strong momentum during December 2025. Commercial vehicle production reached 1,455 units, representing a notable increase from the 1,046 units produced in December 2024.

Sales Volume Registers Impressive Surge

Sales performance exceeded production growth, indicating strong market demand for the company's commercial vehicles. The sales figures reflect the company's ability to convert production into market deliveries effectively.

The substantial increase in sales volumes suggests improved market acceptance and distribution efficiency for SML Mahindra's commercial vehicle portfolio.

Export Volumes Decline Year-on-Year

While domestic performance showed strong growth, export activities experienced a contraction during December 2025. Export volumes decreased to 25 units compared to 50 units in December 2024.

Company Overview and Compliance

SML Mahindra Limited, formerly known as SML Isuzu Limited, operates as a commercial vehicle manufacturer specializing in trucks and buses. The company maintains its registered office and manufacturing works at Village Asron, District Shahid Bhagat Singh Nagar in Punjab. The monthly production, sales, and export report was filed by Company Secretary and Compliance Officer Parvesh Madan on January 8, 2026, ensuring regulatory compliance with stock exchange requirements.