SML Mahindra Reports 62% Revenue Growth in Q3

SML Mahindra Limited reported revenue from operations of Rs 539.27 crores for the third quarter ended December 31, 2025, up 62.5% from Rs 331.80 crores in the corresponding quarter last year. Net profit surged to Rs 17.54 crores compared to Rs 0.53 crores in Q3 FY2025.

The Punjab-based commercial vehicle manufacturer's profit before tax reached Rs 23.52 crores for the quarter, compared to Rs 0.75 crores in Q3 FY2025. Basic and diluted earnings per share for the quarter stood at Rs 12.11 versus Rs 0.36 in the year-ago period.

Nine-Month Performance

For the nine months ended December 31, 2025, SML Mahindra demonstrated robust performance with revenue from operations totaling Rs 1,940.27 crores, up 19.2% from Rs 1,627.61 crores in the corresponding period of the previous fiscal year.

Net profit for the nine-month period reached Rs 105.55 crores, representing a 53.6% increase compared to Rs 68.72 crores in the same period last year. The company's profit before tax for the nine months stood at Rs 141.35 crores, up significantly from Rs 91.24 crores.

The company's basic and diluted earnings per share for the third quarter was Rs 12.11, compared to Rs 0.36 in the corresponding quarter last year. For the nine-month period, EPS reached Rs 72.93, up from Rs 47.48 in the previous year.

The company's cost of materials consumed increased to Rs 496.57 crores in Q3 from Rs 341.08 crores in the year-ago period, reflecting higher production volumes. Employee benefits expense rose to Rs 59.17 crores from Rs 50.41 crores, while finance costs decreased to Rs 5.79 crores from Rs 7.10 crores year-over-year.

Notably, the company reported favorable inventory changes, with a reduction in finished goods and work-in-progress inventory of Rs 119.29 crores during the quarter, similar to the Rs 121.12 crores reduction in the corresponding quarter last year.

The company's financial statements include disclosures regarding two significant regulatory developments:

The Government of India notified four Labour Codes in November 2025, consolidating 29 existing labour laws. SML Mahindra has estimated an incremental impact on retirement benefits of Rs 0.77 crores, though the company continues to monitor developments pending further clarification from regulatory authorities.

Additionally, the Ministry of Environment, Forest and Climate Change has notified the Environment Protection (End-of-Life Vehicles) Rules, 2025, effective April 1, 2025. These rules impose Extended Producer Responsibility obligations on vehicle manufacturers. The company stated it is currently unable to reliably estimate the potential financial impact as implementation details and operational procedures are still being developed.