Led by strong demand for SUVs and tractors, coupled with a sharp improvement in the performance of its ‘Services’ business, Mahindra & Mahindra (M&M) reported a 34% increase in consolidated profit after tax (PAT) to Rs 5,455 crore in the April-June quarter(Q1FY27), from Rs 4,083 crore in the year ago quarter. M&M’s consolidated revenue increased 28% to Rs 58,188 crore in Q1FY27, compared with Rs 45,529 crore in Q1FY26.
During the reported quarter, the company sold a total of 304,000 vehicles (including sales by LMM & MEAL), registering a growth of 23% year-on-year. Sport utility vehicle (SUV) volume touched 175,000 units in Q1FY27, up 15% year-on-year.
Anish Shah, Group CEO & Managing Director, M&M Ltd, said, "Our Auto and Farm businesses continued to strengthen their leadership positions, despite this dynamic environment. TechM and MMFSL have made notable progress on their strategic priorities while our Growth Gems accelerated their growth momentum.”
M&M’s financial services Assets Under Management (AUM) grew at 13% while PAT grew by 78%. Tech Mahindra continued its journey of margin expansion with an improvement of 330 basis points in EBIT (Earnings Before Interest and Taxes). Mahindra Logistics’ revenue grew by 23% and PAT surged 3x.
Mahindra & Mahindra (M&M) also laid out an aggressive capacity expansion plan wherein it aims to double SUV production by FY30-31. Mahindra had earlier announced building its largest integrated auto and tractor manufacturing facility in Nagpur, backed by a Rs 15,000 crore investment with production targeted to start in FY29.
Explaining capacity addition, Rajesh Jejurikar, executive director and Chief Executive Officer for the auto and farm sector, said that the company is on track to reach an exit capacity of 60,000 SUVs per month by the end of September 2026. Together with an operational electric SUV (eSUV) capacity of 8,000 units a month, this will take total monthly capacity to 68,000 units.
By March 2027, conventional SUV capacity will rise to 70,000 units a month. This will include 10,000 units of additional capacity for new products based on the first phase of M&M's NU_IQ platform. The capacity of eSUVs will increase from 8,000 to 12,000 units a month, including 4,000 units for a product scheduled for launch in 2027-28. The two additions will take total capacity to 82,000 units a month.
The maker of the Thar and Scorpio models will then add another 10,000 units a month at Chakan for the second phase of the NU_IQ platform, raising capacity to 92,000 units. The Nagpur facility will enhance production by 20,000 units a month by the middle of calendar year 2029 and another 20,000 units a month the following year.