Mahindra & Mahindra Posts 20% Profit Growth in FY25 with Strong Segment Performance

Mahindra & Mahindra Limited (M&M) announced its financial results for the quarter and year ended March 31, 2025, reporting a 20% year-on-year growth in consolidated profit after tax (PAT) for FY25 at Rs 12,929 crore. The company's board approved a dividend of Rs 25.3 per share, up 20% from the previous year.

For the fourth quarter of FY25, M&M registered a consolidated PAT of Rs 3,295 crore, representing a 20% increase compared to the same period last year. The consolidated revenue for Q4 FY25 stood at Rs 42,599 crore, up 20% year-on-year, while the full-year revenue reached Rs 159,211 crore, marking a 14% growth.

The Automotive segment emerged as the largest contributor to M&M's revenue, generating Rs 25,902 crore in Q4 FY25, a 24% increase from Rs 20,908 crore in the same quarter last year. For the full year, automotive revenue reached Rs 90,825 crore, up 19% from Rs 76,156 crore in FY24. The segment's profit after accounting for joint ventures and associates stood at Rs 2,052 crore for Q4 and Rs 7,797 crore for FY25, showing strong growth of 10% and 29% respectively.

The Farm Equipment segment contributed Rs 7,933 crore to Q4 revenue, up 17% year-on-year, while full-year revenue increased 6% to Rs 35,375 crore. Segment profits for Q4 rose significantly by 25% to Rs 942 crore, with full-year profits reaching Rs 4,947 crore, up 14%.

In the Services division, Financial Services generated Q4 revenue of Rs 4,827 crore, a 14% increase, with full-year revenue growing 17% to Rs 18,296 crore. The segment's Q4 profit declined by 33% to Rs 600 crore, though the full-year profit showed a 17% increase to Rs 3,002 crore. Industrial Businesses and Consumer Services contributed Rs 5,087 crore to Q4 revenue, up 10%, with profits increasing significantly by 8% to Rs 712 crore.

M&M maintained its market leadership across multiple segments. In SUVs, the company achieved a revenue market share of 22.5%, up 210 basis points. It also dominated the LCV <3.5T segment with a 51.9% market share, up 290 basis points, and the tractor market with a record 43.3% share, up 170 basis points. Additionally, M&M led the electric 3-wheeler segment with a 42.9% market share.

The Auto division reported strong performance with Q4 volumes at 253,000 units, up 18%, including a similar growth rate in UV volumes at 149,000 units. The standalone PBIT for Auto in Q4 was Rs 2,306 crore, up 28%, with a margin of 9.2%. For the full year, Auto's standalone PBIT increased by 30% to Rs 8,277 crore.

The Farm sector also delivered impressive results, with Q4 volumes rising 23% to 87,000 units and market share reaching 41.2%. The standalone PBIT for Farm in Q4 grew 51% to Rs 1,250 crore, with a margin of 19.4%. For FY25, Farm's standalone PBIT increased by 30% to Rs 5,371 crore.

"We have delivered strong growth on the back of stellar execution in F25. 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. Our Growth Gems are scaling up well. We continue to build strong businesses which will deliver significant value to our stakeholders," said Dr. Anish Shah, Group CEO & Managing Director, M&M Ltd.

Rajesh Jejurikar, Executive Director & CEO (Auto and Farm Sector), M&M Ltd., noted, "We continued our outstanding performance for the year in Q4-F25, with significant gain of 310 bps YoY in SUV revenue share, and 480 bps YoY in LCV (< 3.5T) market share. In Tractors, we reached our highest-ever Q4 market share of 41.2%, gaining 180 bps YoY. In F25, our Auto Standalone PBIT margin improved by 110 bps and core tractor PBIT margins improved by 200 bps."

Amarjyoti Barua, Group Chief Financial Officer, M&M Ltd., added, "It has been an excellent year with broad-based growth and profitability improvement across our businesses. In line with our commitment to capital allocation, we have sharpened our focus in international Farm geographies. Our results include nearly 10,000 cr. of cash generation in F25 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 F26 on the back of this strong performance."