M&M drives past expectations

Mahindra & Mahindra’s stock jumped nearly 4%, as the company delivered a solid, all-round performance.

The numbers: it posted a 42% jump in profit to ₹4,668 crore, while revenue rose 29% to ₹54,982 crore. 

M&M didn’t just sell more vehicles, it made more money on each one.

So what really worked: the biggest driver was SUVs. M&M’s SUVs are in huge demand right now, and these are high-margin products, meaning more profit per sale. Its SUV volumes hit record highs, helping the company become the second-largest carmaker in India, just behind Maruti.

At the same time, the tractor business also saw strong growth, with volumes up 36%, thanks to healthy rural demand. When farmers earn more, tractor sales usually follow and that’s exactly what played out.

Additionally, what makes this quarter interesting is that every part of the business contributed. The auto segment saw strong revenue and profit growth, the farm business remained stable, and the services segment saw profits jump 64%, adding another layer of strength.