M&M share price up 2% after June quarter performance; topline jumps 11%

M&M results impact: Automobile giant Mahindra and Mahindra (M&M) shares rose as much as 2 per cent to hit an intraday high of Rs 2,979.90 per share. 

The uptick in the stock price came after the company posted a strong set of June quarter (Q1FY25) results.

The company’s standalone revenue rose 11.2 per cent year-on-year (Y-o-Y) to Rs 27,132.8 crore in Q1FY25, as opposed to Rs 24,402.9 crore in Q1FY24.

However, profit dipped over 5 per cent Y-o-Y to Rs 2,612.6 crore in Q1FY25, from Rs 2,759.4 crore in the same quarter last year.

At the operational level, earnings before interest, tax, depreciation and amortisation (Ebitda) jumped almost 16 per cent Y-o-Y to Rs 4,116.2 crore in the June quarter of FY25, from Rs 3,551.1 crore in the same quarter last year (Q1FY24).

 

Consequently, Ebitda margin rose 80 basis points (bps) to 15.2 per cent in the June quarter of financial year 2025, as against 14.6 per cent in the June quarter of FY24. “We delivered robust margin expansion across our businesses through focussed execution,” said Amarjyoti Barua, group chief financial officer, M&M.

Sector-wise performance 

Farm  

The company posted its highest ever quarterly volumes at 120,000, up 5 per cent; farm machinery Q1 revenue came in at Rs 265 crore, up 34 per cent.

Meanwhile, standalone profit before interest, tax stood at Rs 1,506 crore, up 16 per cent and PBIT margin came in at 18.5 per cent, up 100 bps  

“In Q1, we gained market share in both Auto & Farm businesses. We achieved highest ever quarterly tractor volumes and also improved our Core Tractors PBIT margin by 110 bps Y-o-Y. We retained market leadership in SUVs with 21.6 per cent revenue market share and in LCVs less than 3.5T, we crossed 50.9 per cent volume market share,” said Rajesh Jejurikar, executive director & CEO (Auto and Farm Sector), M&M.

Auto  

The company achieved record-breaking Q1 volumes, with a 14 per cent increase to 212,000 units, and a major rise in UV volumes, reaching 124,000 units. 

The SUV production capacity is set to expand from 49,000 units per month at the end of FY24 to 64,000 units per month by the end of FY25, M&M claims. 

Standalone PBIT reached Rs 1,798 crore, marking a 39 per cent increase and a PBIT margin of 9.5 per cent, up 180 bps.

Services 

Mahindra Financial Services Limited (MMFSL) reported a 23 per cent increase in assets under management (AUM), with GS3 improving by 80 basis points to 3.6 per cent, and a 37 per cent rise in consolidated PAT. Tech Mahindra saw a 170 basis point improvement in EBIT margin, resulting in a 23 per cent increase in PAT. 

On the other hand, Mahindra Lifespaces achieved a threefold rise in residential pre-sales, totaling Rs 1,019 crore. Club Mahindra reported total income of Rs 384 crore, an 8 per cent increase, and surpassed a cumulative membership base of 300,000. Mahindra Logistics' revenue grew by 10 per cent to Rs 1,420 crore.

Anish Shah, managing director & CEO, M&M said, “We have started the FY25 fiscal year with strong operating performance across all our businesses. Capitalising on leadership positions, Auto and Farm continued to expand market share and profit margins. Transformation at MMFSL is yielding results as asset quality improves and transformation at TechM has commenced with margins as a key focus. With this momentum and relentless drive towards execution, we will continue to ‘deliver scale’ in FY25.”

At 2:16 PM, shares of M&M were trading 1.01 per cent higher at Rs 2,951 per share. In comparison, BSE Sensex was trading 0.21 per cent higher at 81.628.61 levels.