Mahindra & Mahindra Q2 results: Profit rises 25% YoY to ₹4,588 crore, auto revenue up 39%; margins under pressure?

Mahindra & Mahindra announced its July to September quarter results for the financial year 2026-27, in which the company posted a 25% year-on-year (YoY) growth in its consolidated net profit, with major support from automotive sales, while the overall margins remained under pressure due to the cost of raw materials.

As per the latest NSE filing, Mahindra & Mahindra recorded a 25% YoY growth in its consolidated net profit after tax (attributable to owners) to ₹4,588 crore in the second quarter of FY27, in comparison to ₹3,673 crore in the corresponding quarter of the previous fiscal year.

The automaker’s revenue from core operations advanced 25.3% to ₹57,515 crore in the September quarter of FY27, compared with ₹45,885 crore in the same quarter of the previous fiscal year.

The healthy revenue gains were largely powered by the significant improvement in the company’s automotive income in the quarter, which increased 39% in the period under review. The filings showed that Auto segment revenues surged to ₹37,756 crore, from ₹27,170 crore in the same quarter a year ago.

“Auto continued to grow on the back of strong consumer demand, while Farm experienced a marginal decline on account of the festive season shift,” said Anish Shah, the Group CEO and Managing Director of M&M.

The company’s operating profit or earnings before interest, tax, depreciation, and amortisation (EBITDA), excluding other income, surged 17% YoY to ₹10,183 crore, from ₹8,709 crore.

Margins under pressure?

On the margins front, Mahindra & Mahindra’s (M&M) EBITDA margins contracted 127 basis points to 17.7% in the September quarter of the current fiscal year, compared to 18.9% in the same quarter last year.

M&M’s margins were under pressure due to the elevated cost of raw materials in the period under review. The raw material cost increased 32.3% YoY to ₹36,909 crore in the second quarter, from ₹27,887 crore in the previous year.

The filings showed that the company’s operating margins declined by 123 basis points to 13.38% in Q2 FY27, in comparison to 14.61% in Q2 FY26.

Although Mahindra & Mahindra’s operating and EBITDA margins contracted in the period under review, the company’s profit margins improved by 38 basis points (bps) to 8.98%, from earlier 8.6% levels in Q2 FY26.

Stock jumps over 6%

NSE data showed that Mahindra & Mahindra share price rallied 6.1% to hit an intraday high of ₹3,145 apiece after the company announced its Q2 earnings report, in comparison to ₹2,961.90 apiece at the previous stock market close.

After hitting the day’s high, the company's shares retracted some of their gains, trading 4.4% higher during the afternoon market hours at around ₹3,128.90 apiece on November 5.

Data showed that M&M shares have delivered more than 254% returns to their investors in the last five years and have gained 110% on their investment in the last three years. However, the stock has lost 13.6% in the past one-year period.

On a year-to-date (YTD) basis, the stock has lost 17.7% but has risen 8.2% in the last one-month basis. The exchange data also showed that the company’s stock was trading 7% higher in the last five market sessions.

The company’s market capitalisation (m-cap) was at over ₹3.89 lakh crore as of the trading session on Thursday, November 5.