Mahindra Defies Industry Slowdown with Stellar SUV Sales and Strong Q1FY26 Performance

continues to race ahead in India's auto sector, riding the wave of strong SUV demand. Despite a broader slowdown in the domestic car market, Mahindra registered a 24% YoY surge in net profit, reaching ₹4,376 crore for Q1FY26 — marking its fourth consecutive quarter of 20%+ profit growth. The company's top-line performance was equally impressive. A 22% jump in total passenger vehicle sales, reaching 1,52,067 units, pushed revenue up to ₹46,446 crore. This solid growth came on the back of strong performance by its popular SUVs like the XUV700, Scorpio, and Thar, all of which have gained traction across both urban and rural markets. What’s particularly noteworthy is Mahindra’s ability to maintain a stable auto business margin of 10%, despite industry pressures and the exclusion of its EV contract manufacturing operations. This places Mahindra ahead of many peers, especially as it has now overtaken Hyundai to become the second-largest carmaker in India in Q1FY26. Executive Director & CEO (Auto & Farm Sector), Rajesh Jejurikar, acknowledged the challenges in urban demand sentiment but remained confident. “Fundamentals are in place… sentiment should improve as the festive season approaches,” he said. He also reaffirmed Mahindra's aim to maintain mid-teen growth in SUV sales moving forward. Notably, Jejurikar’s leadership over the past five years has been pivotal. Under his watch, Mahindra climbed from a struggling position to now holding the second-largest market share in passenger vehicles in India. Meanwhile, his brother Shailesh Jejurikar also made headlines as the newly appointed global CEO of Procter & Gamble. Meanwhile, Group CEO Anish Shah added that Q1FY26 was “an excellent quarter with broad-based growth,” noting that Mahindra's consistent market share gains and margin expansions are clear signs of strong operational execution. More in Next Opinion