Mahindra & Mahindra Q2 FY25: Strong Profit Growth Despite Margin Pressure

Mahindra & Mahindra (M&M)

reported a net profit of ₹3,263 crore, up 21% YoY, driven by robust growth in its auto and farm segments. Revenue rose 11% YoY to ₹29,245 crore, led by strong SUV sales, which grew 18%. However, EBIT margin fell slightly to 12.5% (vs 13.1% last year) due to higher input costs and competitive pricing in the SUV market. Despite this, the company maintained its leadership in key segments — Scorpio-N, XUV700, and Thar continue to see strong demand with a pending order book of over 2.4 lakh vehicles. In the tractor segment, volumes were flat due to weak monsoon trends, but M&M gained market share thanks to rural penetration and new model launches. Management highlighted continued focus on EV expansion, with plans to launch multiple Born Electric SUVs in FY26. Key Highlights: Revenue: ₹29,245 crore (+11% YoY) Net Profit: ₹3,263 crore (+21% YoY) EBIT Margin: 12.5% Auto volumes: +18% YoY Tractor volumes: flat Order backlog: 2.4 lakh units Stock View: M&M remains a strong play on India’s SUV and rural recovery themes. While margin pressure persists, its diversified portfolio and EV plans support long-term growth. Learning: Always look beyond profit — margin trends and order backlog reveal the company’s operational strength and future demand visibility.