Mahindra & Mahindra (M&M), a leading Indian multinational corporation, has announced a comprehensive long-term growth strategy extending through fiscal year 2026, building on its recent strong market performance and leadership positions across multiple segments.

Strategic Focus on Core Businesses

The strategy aims to capitalize on M&M's record market share in SUVs and tractors, while further strengthening its position in the rapidly growing electric vehicle (EV) market. In the first quarter, M&M demonstrated impressive results that align with this strategic direction:

• SUV segment: Revenue market share reached 27.30%, a significant increase of 570 basis points year-over-year. SUV volumes grew by 22%.
• Tractor segment: Market share expanded to 45.20%, up by 50 basis points, with a 10% increase in volumes.
• Electric vehicles: M&M secured the top position in EV revenue market share for both E-SUV and E-PV categories.

Financial Performance Highlights

The company's Q1 financial results underscore the effectiveness of its strategic initiatives:

The Auto and Farm sectors combined PAT grew by 20%.

Margin Expansion and Operational Excellence

M&M's focus on operational excellence is evident in its margin improvements:

• Auto segment: Standalone PBIT (Profit Before Interest and Tax) margin, excluding eSUV contract manufacturing, reached 10.00%, up 50 basis points.
• Farm segment: Standalone PBIT margin increased to 19.80%, a rise of 130 basis points.

Diversified Growth Across Segments

The company's growth strategy extends beyond its core automotive and farm equipment businesses:

• Tech Mahindra: Showed progress in margin recovery, with EBIT margin improving by 260 basis points to 11.10% in Q1.
• Mahindra Finance: Demonstrated stable asset quality with Gross Stage 3 (GS3) assets below 4%, aligning with company commitments.
• Growth Gems: Promising developments in various businesses, including real estate, renewable energy, and logistics.

Leadership Perspectives

Dr. Anish Shah, Group CEO & Managing Director of M&M, commented on the Q1 performance: "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), highlighted the company's market leadership: "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."

Looking Ahead

As Mahindra & Mahindra implements its long-term strategy through FY26, the company appears well-positioned to leverage its strengths in core businesses while exploring new growth avenues. The focus on electric vehicles, margin improvement, and diversification into promising sectors suggests a comprehensive approach to sustaining growth and market leadership in an evolving automotive and industrial landscape.

Investors and industry observers will be keenly watching how M&M executes this strategy in the coming quarters, particularly in light of global economic uncertainties and the ongoing transition to electric mobility.

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.