Forbes India
Mahindra & Mahindra closed FY26 with a net profit of Rs17,099 crore, up 32 percent from a year earlier, while revenue rose 25 percent to Rs1.98 lakh crore. The management downplayed concerns about potential disruptions from the West Asia conflict, saying there was limited impact on its operations so far.The company had posted a consolidated net profit of Rs12,929 crore a year earlier, while revenue stood at Rs1.59 lakh crore, according to its annual results.“Growth was driven by all our businesses and we’ve seen this performance over the past few quarters,” said Anish Shah, group CEO & MD, Mahindra Group, at a post-results press conference. “In addition to that, it has been a transformational year for multiple businesses. Mahindra Finance has pivoted to growth with net profit up 60 percent.”Mahindra’s “Growth Gems”—a portfolio of businesses that the group believes can scale significantly in valuation, such as real estate, logistics and Accelo (high-end automotive components manufacturing)—delivered net profit growth of 50 percent.The automotive business sustained growth momentum with revenue jumping 25 percent to Rs1.09 lakh crore from Rs87,443 crore last year. Profit before interest and tax (PBIT) climbed 22 percent to Rs10,141 crore. Its PBIT margin was at 9.3 percent, down from 9.5 percent last year, reflecting the impact of the rising share of Electric vehicles (EVs) in its portfolio.The EV share in Mahindra’s product mix reached 9.6 percent in the Q4 of FY26, up from 6 percent in the same quarter last year. Rajesh Jejurikar, executive director & CEO (auto and farm sector), said the penetration has to go up to 18-20 percent over the next five years for the automaker to meet CAFE-3 norms. “We will reach that comfortably. We were already at 11 percent+ in the last two months. By March 2027, EV penetration should be at 13-15 percent.”With exports of 40,106 passenger and commercial vehicles, M&M is now the fifth-largest auto exporter. This is an increase of 19 percent over 33,702 last year.The SUV maker had an operational capacity of 64,500 units at the end of FY26, which is expected to rise to 68,000 units by the first half of the current fiscal and an additional 14,000 by the end of FY27 for new launches planned in FY28. It said it was No. 1 in SUVs, with revenue market share at 25.3 percent, up 260 bps.Also Read: Mahindra exits Japan farm unit, sharpens ‘growth gems’ strategyOn the impact of the war on production, the management said there were no worries so far, though March was difficult and it was monitoring LPG supply daily.One area that caused some stress was the availability of manpower as workers left for voting, said Jejurikar. “That will improve now as people come back.”On whether the West Asia crisis impacted input costs, Amarjyoti Barua, group chief financial officer, said there are two kinds of commodity pressures: Temporary and long-lasting. “Take aluminium as an example: Capacity constraints there are likely to persist not just through the current conflict but potentially well beyond it. We’re evaluating commodities through that lens. We are hedging our purchases wherever we can. The auto business has already taken a price hike, and if structural pressures continue, we will reassess. But it’s equally important not to overreact to temporary inflation.”
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