Mahindra 'Growth Gems' Drive 50% Profit Surge in FY26

Even as Mahindra & Mahindra's (M&M) passenger SUVs often capture the national limelight, the group’s curated collection of "Growth Gems" is proving to be a high-velocity powerhouse, collectively delivering a 50% profit surge in  FY26. This surge is anchored by a strategic focus on segments benefiting directly from India’s massive infrastructure push and the rapid electrification of its urban transport networks.

Nowhere is this momentum more visible than in the last mile mobility division, which has seen its revenue skyrocket by more than ten times compared to its pre-pandemic baseline. The group claims to have  firmly established itself as the undisputed leader in the electric three-wheeler market, capturing a dominant 40% share of the industry in the 2026 fiscal year.

Simultaneously, the group’s logistics arm is undergoing a significant transformation moving out of the red during the last fiscal. The division has tightened its operational discipline and sharpened its focus on the economics of individual customer accounts rather than chasing scale for its own sake. The results are evident in the fourth-quarter figures, where gross margins jumped by 27% compared to the previous year. By embedding itself deeply into the high-growth e-commerce and quick-commerce sectors, Mahindra Logistics has managed to scale its revenue fourfold over the long term, even as it navigates complex global supply chain shocks.

The heavy lifting is also being done by the trucks and buses segment, which is successfully outrunning the broader commercial vehicle industry. The combined business grew by 15% this year, notably ahead of the 13% average recorded by its competitors. The bus division (ILCV buses), in particular, has seen exceptional strength, securing its position as the third-largest player in the country with nearly a 23% market share.

Looking ahead, these high-potential businesses are no longer just supporting acts but are central to the group’s goal of maintaining a consistent 20% return on equity.