News ArticleMahindra & Mahindra Reports 25% Revenue and Profit Growth in Q2 FY27, Strong RoE at 21%
Company's key business segments show resilience amid inflation and supply challenges, with growth strategies accelerating for the decade
Mahindra & Mahindra Ltd reported a 25% increase in revenue and profit after tax for Q2 FY27, with an annualised return on equity of 21%. The company demonstrated resilience across its automotive, farm equipment, technology, and financial services sectors despite inflationary challenges, and outlined growth plans to scale businesses significantly during the decade.
Mahindra & Mahindra Ltd
Investor Presentation
Mahindra & Mahindra Ltd announced a 25% increase in consolidated revenue to Rs 57,553 crore and a 25% rise in profit after tax to Rs 4,588 crore for the second quarter of fiscal year 2027, with an annualised return on equity of 21%.
Each business segment, including automotive, farm equipment, technology, and financial services, showed strong performance and demonstrated resilience amid challenges such as commodity inflation, supply chain constraints, and market uncertainties.
The auto sector delivered a 55% increase in profit after tax driven by volume growth and strategic price increases despite short-term margin pressure.
The farm sector experienced a 9% decline in profit after tax due to volume reduction and commodity price inflation but maintained market share and improved margins quarter-on-quarter.
Technology services achieved a 33% rise in profit after tax with growth in large deal wins and AI adoption.
Financial services saw a 61% jump in profit after tax thanks to asset under management growth of 15% and improved asset quality metrics such as a GS3 level reduction to 3.42%. Proactive pricing, cost measures, and capacity expansions aim to offset inflationary pressures in upcoming quarters, with expected normalisation of core tractor margins by fiscal 2028 first half. Growth ambitions include scaling automotive revenue 8x, tripling farm revenue, increasing financial services assets 4-5x, and significantly expanding presence in last mile mobility, lifespaces, and aerospace sectors by fiscal 2030.
Highlights
- Q2 FY27 consolidated revenue rose 25% to Rs 57,553 crore from Rs 46,106 crore in Q2 FY26.
- Profit after tax grew 25% to Rs 4,588 crore for the quarter.
- Annualised return on equity reached 21% for the half year ending Q2 FY27.
- Auto sector profit increased 55% with a 15% growth in AUM and a GS3 asset quality reduction to 3.42%.
- Farm sector profit declined 9%, volume dropped but market share expanded to 43.4%.
- Technology services profit after tax grew 33%, driven by AI and large deal wins implementation.
Key Data Snapshot
What happened
- Mahindra & Mahindra posted a 25% increase in consolidated revenue and profit after tax in Q2 FY27 compared to Q2 FY26.
- The company’s annualised return on equity for the first half of fiscal year 2027 stood at 21%.
- Key business segments like automotive, farm equipment, technology services, and financial services contributed to the growth despite external challenges.
Key details
- Automotive sector recorded a 55% growth in profit after tax, underpinned by volume increase, pricing actions, and hedging strategies.
- Farm sector saw a 9% decrease in profit due to volume decline and inflation on commodities but sustained market share at 43.4%.
- Technology business grew profit by 33%, supported by AI adoption and strong deal pipeline.
- Financial services profit surged 61% with 15% AUM growth and improved asset quality, including a GS3 decrease to 3.42%.
- The company implemented proactive measures such as price increases and capacity expansions to manage inflationary pressures and supply chain constraints.
Strategic context
- Mahindra & Mahindra aims to scale key businesses multiple times during the decade, targeting 5x to 25x growth.
- Long-term growth strategies include expanding automotive SUV leadership, enhancing farm machinery exports and margins, accelerating financial services digital adoption, and increasing presence in electric vehicle last mile mobility.
- The company plans to maintain strong operational margins through cost discipline and price management, with a forecast of margin normalisation in core tractors by FY28 first half.
Highlights
- Q2 FY27 consolidated revenue rose 25% to Rs 57,553 crore from Rs 46,106 crore in Q2 FY26.
- Profit after tax grew 25% to Rs 4,588 crore for the quarter.
- Annualised return on equity reached 21% for the half year ending Q2 FY27.
- Auto sector profit increased 55% with a 15% growth in AUM and a GS3 asset quality reduction to 3.42%.
- Farm sector profit declined 9%, volume dropped but market share expanded to 43.4%.
- Technology services profit after tax grew 33%, driven by AI and large deal wins implementation.
Disclosures
- Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
Source Information
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