This article first appeared on GuruFocus .
-
Operating PAT:Up 66%.
-
Reported PAT:Up 47%.
-
Auto and Farm Volume:Up 23% for both businesses.
-
Auto Margins:Up 90 basis points.
-
Farm Margins:Up 240 basis points.
-
Mahindra Finance Operating Performance:Up 97%.
-
Mahindra Lifespaces Profits:Up 5 times.
-
Logistics Profitability:First profitable quarter after 11 quarters.
-
Consolidated Revenue Growth:Up 26%.
-
SUV Volume:Up 26%.
-
Farm Machinery Revenue:Up 45%.
-
Microfinance Assets Under Management:Up 12%.
-
Return on Equity (ROE):Up to 20.1%.
-
Top Line Revenue:Crossed INR 50,000 crores for the first time.
-
Labor Code Impact:INR 220 crore impact on consolidated results.
-
Cash Performance:Strong growth across the group.
Release Date: February 11, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Operating PAT increased by 66% and reported PAT by 47%, indicating strong financial performance.
-
Volume and margin growth were robust for both auto and farm sectors, with volumes up 23% and margins up significantly.
-
Mahindra Finance showed a 97% increase in operating performance, highlighting improvements in asset quality, controls, and technology.
-
Lifespaces profits increased fivefold, demonstrating strong performance in the real estate sector.
-
Logistics achieved its first profitable quarter after 11 quarters, driven by strong execution and leadership changes.
Negative Points
-
International impairments in the farm sector negatively impacted overall numbers, despite strong domestic performance.
-
Mahindra Finance reported a 9% decline in reported performance, despite operational improvements.
-
Hospitality sector faced challenges due to FX exposure in its Finland business, affecting overall performance.
-
The company faced commodity inflation, particularly in precious metals, impacting costs.
-
Memory chip shortages pose a risk across the portfolio, affecting both ICE and EV production.
Q & A Highlights
Q: Can you provide an outlook for the auto sector, including LCVs, tractors, and autos, and discuss the impact of the recent GST cut? A: Rajesh Jejurikar, Executive Director and CEO of Auto and Farm Sector, explained that the GST cut primarily benefits commercial segments by improving cost of ownership and viability. This is expected to drive a cycle of increased demand, particularly in LCVs and tractors. The GST cut may also enable customers to move up to higher variants or models, but it is not expected to significantly increase overall industry size.
Q: How is Mahindra & Mahindra addressing commodity inflation, particularly in precious metals, and do you have pricing power to manage this? A: Amarjyoti Barua, Group CFO, noted that there is inflation across most commodities, with precious metals leading. The company has a robust hedging program, but hedges can only cover a portion of the exposure. They have taken a 1% price increase to manage future impacts and will continue to monitor the situation.
Q: What are your thoughts on the potential impact of CAFE norms and the expected EV mix target for FY28? A: Anish Shah, CEO and MD, stated that the industry is engaging with the government on emission norms. The company's internal EV mix target is not directly linked to CAFE requirements, and they believe the required EV mix will be lower than their target. The focus is on growing each segment without worrying about ratios.
Q: Can you discuss the growth strategy for Mahindra Finance now that asset quality has improved? A: Anish Shah highlighted that Mahindra Finance has focused on improving asset quality, controls, and technology over the past three years. With asset quality now stable, the company is pivoting to growth, focusing on responsible expansion and cross-selling opportunities to improve ROA.
Q: What is the strategy for the EV business scale-up, and how are you addressing supply chain challenges? A: Rajesh Jejurikar explained that the EV business will focus on scaling up with the current three models, targeting 7,000 to 8,000 units per month. The supply chain for EVs is not facing specific disruptions compared to ICE vehicles, and the company is managing memory chip shortages across the portfolio.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
