Mahindra & Mahindra Q4FY25 Financial Results – Strong Growth with Margin Pressures

Mahindra & Mahindra posted robust financial results for Q4FY25, delivering strong revenue and profit growth, despite margin contraction. This article delves into Mahindra & Mahindra Q4FY25 Financial Results.

Mahindra & Mahindra Q4FY25 Financial Results

Standalone Performance – Steady Revenue & Profit Growth

• Revenue: ₹31,608.7 crore, up 24% YoY, highlighting solid business momentum.
• PAT: ₹2,437.1 crore, growing 21.9% YoY, reflecting strong earnings growth.
• EBITDA: ₹4,219.3 crore, marking a 23.1% increase YoY.
• Margins:

• EBITDA margin declined by 13 basis points YoY, pointing to rising cost pressures.
• Net margin fell by 15 basis points YoY, signaling profitability compression.

Consolidated Performance – Broad-Based Growth

• Revenue from operations: ₹42,585.7 crore, up 20.4% YoY, driven by expanding market presence.
• Consolidated PAT: ₹3,451.85 crore, rising 11.8% YoY, reinforcing stable profitability.

Market Share & Volume Expansion

• SUV Volume: Up 20% in FY25, pushing market share up 210 basis points to 22.5%.
• Tractor Volume: 12% YoY growth, with domestic market share reaching an all-time high of 43.3% (up 170 basis points YoY).
• Q4FY25 Sales:
  • SUV sales: 149,000 units, growing 18% YoY.
  • Tractor sales: 87,000 units, up 23% YoY.
• Management Outlook: Competition was less intense in Q4FY25, but expected to rise going forward.

Farm Machinery & Automotive Expansion

• Farm Machinery Revenue (FY25): ₹1,024 crore, showing 18% YoY growth.
• Standalone Farm Machinery PBIT: 18.4%, indicating healthy profitability.
• Consolidated Farm Machinery Revenue: ₹7,933 crore, up 17% YoY.
• SUV Revenue Market Share:

• Q4FY25: 23.5%, an increase of 310 basis points YoY.
• FY25: 22.5%, up by 210 basis points YoY.

The Last Mile Mobility (LLM) segment has seen significant sales growth in the past three years, with electric three-wheelers capturing a 42.9% market share for FY25. The company focuses on developing advanced technology in this segment and plans to expand its channel. Additionally, it is the leader in the LCV <3.5T category.

EV Segment & Future Strategy

• E-SUV Market Share: 37.2% in Q4FY25, demonstrating leadership in electric mobility.
• E-PV Market Share: 33.1% in Q4FY25, reinforcing growing adoption of EV offerings.
• Automotive Segment PBIT Margin: Improved to 9.5%, reflecting strong operational efficiencies.
• Revenue from eSUV Contract Manufacturing: ₹2,046 crore in Q4FY25, showcasing growth in EV production.
• Born Electric Vehicle (BEV) Segment: EBITDA positive, significantly improving financial sustainability.
• Subsidiary MEAL Ltd: Reported a ₹171 crore loss, highlighting challenges in certain business units.
• Planned Launches (2026):
  • Three ICE SUVs
  • Two BEVs
  • Two LCVs
• The company is planning to increase its current capacity of 54,000 SUVs per month to 67,000 SUVs per month by the end of FY27
• M&M is also planning to increase its BEV capacity by more than 100% in 2 years

Investment & Capital Allocation

• Capex: ₹5,033 crore, reinforcing business expansion.
  • ₹4,241 crore was allocated to the Auto segment.
  • ₹792 crore was dedicated to the Farm segment.
• Investment Write-offs: ₹654 crore in Mahindra Agricultural Machinery (MAM) and Sampo, indicating portfolio adjustments.
• Return on Equity (RoE): 18% for FY25, consistent with FY24 and FY23 performance.
• Return on Capital Employed (ROCE): 45.2% as of March 31, 2025.

The company is optimistic about the growth prospects for its key subsidiaries: Mahindra Holidays and Resorts, Lifespace, Mahindra Logistics, and Susten. It intends to triple the number of rooms under Mahindra Holidays and Resorts. Additionally, the company plans to expand its portfolio from 1.5 GW to 7 GW by the end of FY30.

Conclusion

Mahindra & Mahindra showcased strong revenue and profitability growth, fueled by expanding market share in SUVs and tractors. While margins saw a slight contraction, the company’s investments, EV expansion, and planned product launches position it well for continued growth in FY26.

Also read: Our analysis of Mahindra & Mahindra’s annual report.

References

• Mahindra & Mahindra Q4FY25 financial results investor presentation