M & M Q2 FY27 Results (NSE: M&M)
Signal: Steady quarter
The read
The trajectory remains growth-led but increasingly split: consolidated revenue rose 25% to ₹57,553 crore and PAT rose 25% to ₹4,588 crore, driven by Auto PAT growth of 55% and Services PAT growth of 18%, while Farm revenue fell 6% and PAT fell 9%; standalone EBITDA growth of 4% against revenue growth of 26% flags margin pressure beneath the group headline.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹57,553 Cr | 25% | N/A |
| Net profit | ₹4,588 Cr | 25% |
P&L walk
Consolidated revenue increased 25% to ₹57,553 crore and PAT increased 25% to ₹4,588 crore; Auto was the main earnings accelerator with PAT up 55%, while Farm revenue fell 6% and PAT fell 9%.
Segments
Automotive was the principal driver, with revenue up 39% to ₹37,756 crore and PBIT of ₹3,319 crore, while Farm dragged with revenue down 6% to ₹9,572 crore and PBIT down to ₹1,376 crore; Services contributed ₹11,821 crore of revenue, up 18%.
Key positives
- Auto consolidated revenue rose 39% YoY to ₹37,756 crore and Auto PAT rose 55%; SUV volumes grew 26% and SUV revenue market share was 24.3%.
- Total vehicle volumes increased 26% to 330,896, broadly matching standalone revenue growth of 26%, indicating volume-led expansion.
- Automotive consolidated PBIT margin improved to 8.8%, up 110bps QoQ, while Tech Mahindra EBIT margin expanded to 14.8%, up 260bps QoQ.
- MMFSL AUM grew 15%, and Services revenue rose 18% to ₹11,821 crore with Services PAT up 18%.
- Mahindra Lifespaces residential pre-sales rose 41% to ₹1.1k crore and Mahindra Logistics PAT was positive and up 3x.
Key concerns
- Farm consolidated revenue declined 6% to ₹9,572 crore and PAT declined 9% to ₹1,053 crore; Farm PBIT margin fell to 14.4% from 15.7% YoY amid significant commodity-price increases and a festive-season shift.
- Standalone EBITDA rose only 4% to ₹6,718 crore against revenue growth of 26%, implying standalone EBITDA margin compression to approximately 15.2% from approximately 18.4%.
- Standalone Farm volumes declined 6% to 116,027 tractors, indicating that the Farm weakness is volume-led rather than only a margin issue.
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