SUV major and one of India's largest EV players, Mahindra and Mahindra, is set to release its earnings report for the fourth fiscal quarter of FY25 on May 5. Analysts expect an uptick in revenue, driven by a strong product mix, a better auto/farm volume growth and realisation. Margins are likely to witness a solid rise on the back of strong operating leverage.
Mahindra & Mahindra is expected to post a healthy set of numbers for the fourth quarter, buoyed by strong volumes and steady margins. According to a Moneycontrol poll of seven brokerages, the automaker’s revenue is likely to rise 18.3 percent year-on-year to Rs 29,668 crore. Net profit is projected to jump 19.3 percent to Rs 2,386 crore, up from Rs 2,000 crore in the year-ago period.
Earnings estimates from analysts polled by Moneycontrol are in a diverse range, indicating that any positive or negative surprises could trigger a sharp reaction in the stock price. Most optimistic brokerage -- BNP Paribas -- has forecasted a 27.75 percent increase in net profit. On the flipside, Nomura -- the most pessimistic brokerage -- projects a 5.4 percent rise in net profit.
What factors could aid Mahindra and Mahindra's earnings?
Volume growth: A higher mix of farm equipment models, automotive, and BEV vehicles is likely to result in a robust rise in volumes. "M&M continues to see strong traction in new SUV models, with new monthly bookings exceeding its billings. Also, the company's target capacity of 72k/month by end-FY26 offers significant volume growth upside," BNP Paribas said in a note. The company has sold 3.41 lakh units, a rise of 19 percent year-on-year.
Robust Margins: As per the estimates, the EBITDA margin will likely surge over 400 basis points on
better margins in the tractor segment and strong operating leverage. However, it will be offset by newly launched EV models.
Rise in SUVS: M&M continues to hold a leading position in the SUV segment, supported by a strong portfolio that includes the Scorpio-N, Thar, and XUV700. "This robust lineup is also expected to support the ramp-up of its upcoming BEV models. In the tractor segment, new model launches aimed at addressing portfolio gaps should aid in sustaining market share gains," BNP Paribas said.
What to look out for in the quarterly show?
Key areas to watch include the volume ramp-up plans for the BE.06 and XUV.e9, guidance on tractor volumes, and insights into rural demand trends. Updates on LCV demand, cost-control measures, and any revision to FY26 automotive volume growth guidance will also be important. Additionally, commentary on industry discounting trends, competitive dynamics, and the impact of commodity costs during the quarter will be closely tracked.
M&M shares closed at Rs 2,927, down 0.1 percent from the last close on the NSE. Given the recent market rally, M&M shares rose 11 percent last month.
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