Mahindra & Mahindra’s consolidated net profit increases by 19.65% in March 2025 quarter

Mahindra & Mahindra has reported a strong performance in the March 2025 quarter, with consolidated net profit rising by 19.65% to Rs 3,295.17 crore, compared to Rs 2,754.08 crore in the same period last year. Sales surged 20.39%, reaching Rs 42,585.67 crore, up from Rs 35,373.34 crore in Q4 FY24.

For the full fiscal year, Mahindra & Mahindra’s net profit increased by 14.74% to Rs 12,929.10 crore, as against Rs 11,268.64 crore in FY24. Sales for FY25 rose 14.80%, totalling Rs 1,58,749.75 crore, compared to Rs 1,38,279.30 crore in FY24.

Key Highlights:

• Q4 FY25 Net Profit: Rs 3,295.17 crore (+19.65% YoY)

• Q4 FY25 Sales: Rs 42,585.67 crore (+20.39% YoY)

• FY25 Net Profit: Rs 12,929.10 crore (+14.74% YoY)

• FY25 Sales: Rs 1,58,749.75 crore (+14.80% YoY)

With consistent growth in both revenue and profit, Mahindra & Mahindra is poised for continued success. Share price movement is likely to remain in focus following the positive results.

Profit in-line; operating performance lifts sentiment

Net profit stood at Rs 2,437 crore, broadly in line with estimates of Rs 2,450 crore, registering a 19.6 per cent year-on-year growth. However, it was the operating performance that stood out. EBITDA surged 39 per cent to Rs 4,683 crore, beating expectations of Rs 4,158 crore.

EBITDA margin expanded sharply to 14.9 per cent from 13.4 per cent in Q4FY24, marking a clear beat over the expected 13.8 per cent.

Auto and farm segments post healthy growth

In the Auto segment, volumes rose 18 per cent YoY, while revenue market share increased by 310 basis points to 23.5 per cent. Farm equipment volumes grew by 23 per cent year-on-year, with M&M’s market share in the segment reaching 43.3 per cent – up 170 bps for FY25.

Realisation and cash generation strong; dividend declared

Realisation per unit improved 5 per cent YoY and 11 per cent sequentially, indicating pricing power and a richer product mix. The company generated nearly Rs 10,000 crore in cash during FY25.

“Our results include nearly Rs 10,000 crore of cash generation in FY25, giving us the ability to drive long-term shareholder value through strategic investments,” said Amarjyoti Barua, Group CFO, Mahindra & Mahindra.

The company has declared a dividend of Rs 25.3 per share for FY25.

What should investors do now?

Analysts say the Q4 print strengthens M&M’s long-term positioning in the auto and agri sectors. The volume growth, healthy margin trajectory, and strong free cash flow generation have kept the stock in favour among institutional investors.

With continued leadership in farm equipment and rising SUV market share, M&M is seen as a strong structural story. Investors may look to accumulate the stock on dips with a long-term view, say experts.