M&M Reports Strong Q2 Growth, Books 62.5% Gain on Sale of RBL Bank Stake

Mahindra & Mahindra (M&M) posted robust Q2FY26 results, with consolidated net profit rising 15.85% YoY to ₹3,673 crore and revenue up 21.75% to ₹45,885 crore, driven by strong tractor and auto sales. Excluding one-time items from both years, PAT grew an impressive 28%, reflecting solid underlying performance. In a strategic treasury move, M&M sold its entire 3.53% stake in RBL Bank for ₹678 crore, booking a 62.5% return on its original investment of ₹417 crore made in July 2023. The company disclosed the sale in a BSE filing, stating the proceeds align with its strategy of optimizing portfolio investments. Originally acquired to gain long-term insights into the banking sector, the stake was divested as a strategic opportunity emerged—coinciding with Emirates NBD’s proposed $3 billion (₹26,853 crore) acquisition of a 60% stake in RBL Bank, the largest foreign investment in India’s financial services sector. The timely exit underscores M&M’s prudent capital allocation, generating significant value from a short-term treasury investment. The stock rose 0.15% post-results, while RBL Bank shares gained over 2% on the back of positive sentiment from the Emirates NBD deal and M&M’s stake sale. With core operations strong and strategic investments delivering returns, M&M is well-positioned for sustained growth across its industrial and financial assets.