Mahindra & Mahindra (M&M) delivered a record June-quarter consolidated profit of ₹5,455 crore, up 34% year-on-year, despite facing 400-500 basis points of commodity-cost inflation across its automotive and farm businesses, according to a report by The Hindu BusinessLine. The group generated nearly 70% of its incremental profit from core operating businesses, underscoring the growing strength of its diversified portfolio and the emergence of electric vehicles as a meaningful earnings contributor.
Operating Businesses Drive Profit Growth
The increase in attributable profit of ₹1,372 crore came mainly from operating businesses, with the partial monetisation of its stake in CIE Automotive contributing ₹413 crore. The remaining ₹959 crore came from operations, led by automotive, farm equipment, Mahindra Finance, Tech Mahindra and the Growth Gems portfolio. Group CEO and Managing Director Anish Shah described it as a case of "all our businesses coming together," reflecting the benefits of Mahindra's diversified business model despite macroeconomic headwinds. Chief Financial Officer Amarjyoti Barua attributed the performance to calibrated price increases, supply-chain efficiencies and cost optimisation measures that helped offset sharply higher prices of steel, aluminium, copper and rubber.
| Business Segment | Incremental Profit Contribution (₹ crore) |
|---|---|
| Automotive | 369 |
| Farm Equipment | 197 |
| Mahindra Finance | 213 |
| Tech Mahindra | 91 |
| Growth Gems | 88 |
| Investment Portfolio (incl. CIE) | 413 |
The automotive business remained the largest contributor, adding ₹369 crore, followed by farm equipment at ₹197 crore. Financial services, technology and emerging businesses are becoming increasingly important drivers of group profitability, rather than merely serving as supporting businesses.
EV Business Reaches Inflection Point
The sharpest turnaround came from Mahindra's electric-vehicle business. Revenue surged 77% to ₹5,430 crore, EBITDA jumped to ₹613 crore from ₹111 crore, and PBIT swung to a profit of ₹288 crore from a loss of ₹101 crore a year earlier—a ₹389-crore improvement that effectively transformed EVs from an earnings drag into a meaningful contributor to automotive profitability. Executive Director and CEO (Auto & Farm Sector) Rajesh Jejurikar said the XEV 9e emerged as India's highest-selling electric SUV by volume during the quarter, while Mahindra continued to gain SUV revenue market share. Electric vehicles now account for 12% of the company's SUV portfolio, with capacity expansion underway to support future demand.
Farm Equipment Absorbs Inflation
The farm equipment business added ₹197 crore to incremental profit as domestic tractor volumes rose 18% and exports increased 15%. Although reported margins were affected by a ₹340-crore impairment related to the exit from Turkish foundry operations, the core domestic-and-export tractor business delivered a 19.2% PBIT margin, remaining at the upper end of Mahindra's long-term 17-19% guidance band. The company nevertheless maintained its FY27 tractor industry growth outlook at mid-single-digit levels.
Diversified Portfolio in Focus
The June-quarter earnings demonstrate that multiple operating businesses can simultaneously drive profit growth even during a period of elevated input costs. The turnaround in electric vehicles, alongside rising contributions from financial services and technology, suggests that Mahindra's next phase of earnings growth is likely to be broader-based and less dependent on any single business segment, according to the report. The group's ability to offset 400-500 bps of commodity inflation through price increases and cost measures underscores the resilience of its manufacturing and procurement operations.
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