Mahindra & Mahindra (M&M) Q2 24/25 earnings summary

Executive summary

• Consolidated PAT rose 35% year-over-year to INR 3,171 crore in Q2 FY25, with revenue up 10% to nearly INR 38,000 crore and strong growth across Auto, Farm, Services, and TechM segments.

• Auto segment market share increased to 21.9%, up almost 2 percentage points year-over-year, with PBIT margin up 140 basis points.

• Farm segment market share rose by nearly 1 percentage point, with margins up 150 basis points year-over-year.

• Services segment saw 80% growth in PAT, driven by Tech Mahindra, Mahindra Finance, and other growth businesses.

• Renewables business achieved nearly 1 GW in a single quarter, ahead of plan.

Financial highlights

• Consolidated PAT up 35% year-over-year, or 22% excluding a non-operating land sale gain; YTD PAT up 127%.

• Auto & Farm segment PAT up 23% year-over-year; Tech Mahindra and Mahindra Finance PAT up 36%.

• Growth businesses (excluding prior year revaluation gain) up 72%.

• ROE at 18.9% for the quarter and YTD, maintaining above 18% target.

• Standalone PAT up 13% year-over-year to ₹3,841 crore.

Outlook and guidance

• Auto segment expects mid to high teens volume growth for the full year, with strong momentum from recent launches.

• Farm segment revised full-year growth outlook to 6%-7%, with H2 tractor industry expected to grow in double digits, supported by surplus rainfall and rural development spending.

• Temporary margin pressure anticipated in Q3 due to launch expenses, but not expected to impact long-term profitability.

• Services segment expected to see significant growth as Mahindra Finance credit costs decline.

• Management focus on capital efficiency and margin improvement.