Suryaa Business Desk: Mahindra & Mahindra Limited reported strong financial performance for the second quarter of the current fiscal year, exceeding market analyst expectations. The company's consolidated net profit rose 25 percent year-on-year to ₹4,588 crore, while consolidated revenue from operations grew by 25.4 percent to ₹57,515 crore. A 25 percent increase in SUV volumes served as a primary driver for this growth.
The company's automobile division recorded robust growth and improved operating margins. Factors contributing to the recovery in EBITDA margins for the auto segment included the control of raw material costs, efficient supply chain management, and strong consumer demand for premium SUV models. The tractors and farm equipment division also maintained stable sales, supported by rural demand.
Following these results, Motilal Oswal Financial Services maintained its bullish outlook on the company and increased its earnings estimates for upcoming fiscal years. The brokerage cited a strong product pipeline, upcoming vehicle launches, and positive consumer sentiment as reasons for a favorable outlook across all segments. Motilal Oswal reiterated its 'buy' recommendation, noting that the company's leadership in the SUV segment and stable tractor sales are expected to support revenue growth in future quarters.