SML Mahindra Ltd. - October 2025 Operational Update & Q2 FY26 Financial Review

Key Operational Highlights (October 2025) SML Mahindra demonstrated robust operational momentum to begin the third quarter, signaling strong market demand. Sales Volume: The company recorded a significant 36% year-over-year (YoY) growth in sales, dispatching 995 units in October 2025, compared to 733 units in October 2024. Production: Commensurate with demand, production volume increased substantially to 1,206 units, a notable rise from the 947 units manufactured in the prior-year period. Exports: The export market remained relatively stable, with 64 units shipped, marking a marginal decrease from 68 units in the previous year. Q2 FY26 Financial Performance (Ended Sept 30, 2025) The company's performance for the second quarter reflected a stable top line, which was offset by persistent cost pressures impacting profitability. Revenue: Quarterly revenue from operations saw a marginal increase of 1% YoY, registering at ₹555 crore compared to ₹549.7 crore in Q2 FY25. This indicates stable market demand but highlights limited pricing momentum. Profitability: The company experienced margin compression, attributed to higher input and production costs. EBITDA: Declined by 6.5% YoY to ₹42 crore from ₹44.8 crore. EBITDA Margin: Contracted by 60 basis points to 7.6%, down from 8.2% in the corresponding quarter last year. Net Profit: Consequently, net profit saw a modest decline of 3.7% YoY, settling at ₹21 crore from ₹22 crore. Strategic Context & Outlook These results are reported as the company undergoes a significant strategic realignment following its rebranding to SML Mahindra. This change follows the acquisition by Mahindra & Mahindra (M&M) of a controlling stake from Sumitomo Corporation (43.96%) and Isuzu Motors (15%), finalized in April 2025. SML Mahindra maintains a strong competitive position, holding an approximate 16% market share in the intermediate and light commercial vehicle (ILCV) bus segment.