Mahindra & Mahindra (M&M) Q3 24/25 earnings summary

Executive summary

• Auto and farm segments achieved double-digit volume growth and market share gains, with consolidated PAT rising 20% year-over-year to Rs 3,181 crore in Q3 FY25.

• Board approved unaudited standalone and consolidated results for Q3 and nine months ended 31 Dec 2024, reviewed by statutory auditors and Audit Committee.

• Major merger of Mahindra Heavy Engines, Mahindra Two Wheelers, and Trringo.com with Mahindra & Mahindra effective 1 April 2023; prior period comparatives restated.

• Auto and Farm businesses capitalized on market leadership, with new EV launches and margin expansion.

• Hospitality occupancy at 84%, real estate saw a major land acquisition with INR 12,000 crore GDV.

Financial highlights

• Consolidated revenue grew 17% year-over-year to Rs 41,470 crore in Q3 FY25; standalone revenue up 20% to Rs 30,964 crore.

• Auto segment revenue up 21% to Rs 23,391 crore; PBIT up 31% to Rs 2,006 crore; farm segment revenue up 11% to Rs 9,537 crore; PBIT up 29% to Rs 1,350 crore.

• Tech Mahindra EBIT margin at 10.2%, up 480 bps year-over-year.

• Consolidated EBITDA and operating margins improved year-over-year; net profit margin for Q3 at 8.74%.

• Price hikes in auto YTD December were 0.7%, with an additional 0.8% in January.

Outlook and guidance

• Farm/tractor industry expected to grow over 15% in Q4, supported by strong reservoir levels, favorable crop production, and MSP hikes.

• Positive momentum anticipated for next year, with detailed guidance to be provided in May.

• EV ramp-up will be gradual to ensure quality; initial monthly volume target is 5,000 units, with 9 BEV variants launching and bookings opening in February 2025.

• Continued focus on margin expansion and new product launches, especially in electric SUVs.