Mahindra & Mahindra (M&M) has announced a strong performance for the second quarter of fiscal year 2026, demonstrating growth and market leadership in both its automotive and farm equipment sectors. The company's consolidated profit after tax (PAT) surged, and revenue witnessed a substantial increase compared to the same period last year.
Financial Highlights
M&M's consolidated revenue for Q2 FY26 grew by 22% to reach Rs 46,106 crore. The consolidated PAT also saw a significant rise of 28% to Rs 3,673 crore, excluding one-time impacts. The company's revenue from operations climbed 21.7% year-on-year to Rs 45,885.40 crore.
Automotive Segment Performance
The automotive division of M&M showcased impressive growth and strengthened its market position. The SUV segment's revenue market share increased to 25.7%, marking a substantial rise of 390 basis points. M&M maintained its leading position in Light Commercial Vehicles (LCVs) under 3.5 tons, with a market share of 53.2%. The company also held the top spot in the electric 3-wheeler segment, capturing a 42.3% market share. Quarterly volumes in the automotive sector reached 262,000 units, including sales by LMM & MEAL, a 13% increase. SUV volumes specifically hit 146,000 units. The Auto standalone PBIT margin improved to 10.30%.
Farm Equipment Segment Performance
The farm equipment division continued to reinforce its market leadership. Tractor market share increased to 43.0%, up by 50 basis points. The Farm Equipment PBIT margin also saw an increase, reaching 19.70%. This represents the highest ever Q2 market share achieved by the farm equipment sector.
Key Announcements and Growth Strategy
Building on its Q1 FY26 performance, Mahindra & Mahindra has unveiled an ambitious growth strategy for the fiscal year. The company aims to leverage its strong market performance and expand its presence across various sectors. M&M is focused on diversified growth, including Tech Mahindra, Mahindra Finance, and other promising sectors. The company maintained its FY26 guidance for the SUV segment, with expectations of mid-to-high teens growth. M&M is also evaluating light earth and ferrite solutions amidst a rare earth supply overhang, ensuring sufficient inventory for the next two quarters.
Management Commentary
Management expressed satisfaction with the company's overall performance and market leadership in both the automotive and farm equipment sectors. The company's focus on operating excellence and strategic growth initiatives has contributed to its strong financial results and market position.
