Mahindra & Mahindra Ltd. has reported a notable financial performance in Q2 FY25, with a consolidated profit after tax (PAT) of INR 3,171 crore, marking a 35% year-on-year increase. This growth signifies the company’s resilience across its primary segments—SUVs, Light Commercial Vehicles (LCVs), and tractors—while underscoring its commitment to sustainable mobility through expanded electric vehicle (EV) capacity.
At the Q2 FY25 Analyst Meet held recently, Dr Anish Shah, Group CEO & MD, remarked on the quarter as a pivotal moment for Mahindra, with all business units aligning toward growth. The company’s auto revenue market share rose to 21.9%, with a 140-basis point increase in profit before interest and tax (PBIT) margin. In the farm sector, the group achieved nearly a one-point gain in market share and boosted margins by 150 basis points.
Capitalising On Market Leadership, EV Expansion
Mahindra’s automotive and farm equipment segments have seen strong market traction. With EV production capacity expanding according to plan, Mahindra is set to solidify its position in electric mobility. In the farm sector, a positive rural sentiment is expected to support growth, although some international markets face challenges, such as downturns in the US market and inflation in Turkey.
Services Businesses
In financial services, Mahindra Finance has adopted a cautious growth approach, focusing on asset quality and responsible lending. Tech Mahindra has capitalised on growth in the BFSI sector, diversifying its client base and expanding into new technology-driven solutions. Despite a mixed demand outlook, Dr Shah noted that Tech Mahindra is poised for further diversification.
Logistics, Rivigo Integration, Future Outlook
According to him, the logistics segment has shown signs of recovery with a gradual uptick in volume, although challenges remain in the express business and integration of Rivigo ( courier tracking services). However, with a solid customer base and ongoing cost-efficiency efforts, the group remains confident in the sector’s long-term potential.
Mahindra’s commitment to consistent value creation is evident, with returns on equity (ROE) above 18% and earnings per share (EPS) growth at a 40% CAGR from FY22 onwards. As the company strengthens its strategic positioning, it continues to focus on responsible, sustainable growth across its diverse business segments.
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