Strong SUV demand drives up M&M standalone net 22% in March quarter
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New Delhi: In a sluggish market, homegrown auto major Mahindra & Mahindra (M&M) on Monday beat Street estimates to report a 22% increase in standalone net profit at ₹2,437 crore for the fourth quarter ended March 31, driven by strong demand for its range of SUVs.Revenue from operations in the period under consideration rose 24% to ₹31,609 crore. During the quarter, the company sold 253,028 vehicles, which is an increase of 18% over the corresponding period of the previous fiscal year. While tractor sales increased 23% to 87,138 units, those of utility vehicles rose 18% to 149,000 units.With the automotive division witnessing double-digit growth in volume sales, the company said it plans to set up a greenfield manufacturing facility to meet future demand by FY28. Current SUV capacity utilisation is already over 90%. Models such as the Thar Roxx and XUV 3XO are running at full capacity, while others such as the Bolero are operating below that level.The company did not disclose the location or capacity addition planned at the new facility, but said expanding capacity is essential given it has a pipeline of new products scheduled for launch by 2030.Rajesh Jejurikar, executive director & CEO (auto and farm sector), M&M, said: "We are coming up with a new greenfield facility because our current SUV capacity utilisation is already over 90%. We haven't yet finalised the exact capacity addition - that's still a work in progress. But with the new products we're planning to launch by 2030, it's clear we will need additional capacity."The company reported its highest-ever full-year market share in the tractor segment last fiscal, at 43.3%, an increase of 170 basis points over the previous year. The company's share in the SUV segment too rose by 210 basis points to 22.5%. Similarly, for light commercial vehicles (LCVs), market share increased by 290 basis points to 51.9%.Anish Shah, group CEO & managing director, M&M, said, "We have delivered strong growth on the back of stellar execution in FY25. Auto and farm continue to gain market share and expand profitability. TechM is making commendable progress towards its dual objectives of strengthening client positioning and margin expansion. MMFSL has maintained GS3 under 4% as committed, remains focused on controls, and has delivered 33% growth in profits. We continue to build strong businesses which will deliver significant value to our stakeholders."M&M Group CFO Amarjyoti Barua said it had been an "excellent year" with broad-based growth and profitability improvement across businesses. In line with their commitment to capital allocation, he added: "Our results include nearly ₹10,000 crore of cash generation in FY25, which gives us the ability to continue to drive value for our shareholders through strategic investments. We are happy to declare a 20% growth in dividend for FY26 on the back of this strong performance."
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