Mahindra & Mahindra (M&M) has increased prices for two of its popular models, the XUV 3X0 and XUV 700, at the start of the quarter, which has helped bolster its profit margins. The company’s management noted that during the festival season in November, typically a peak sales period for the automotive industry in India, M&M offered fewer discounts compared to its competitors. This strategy, combined with a strong demand for its premium SUVs, allowed M&M to navigate the margin pressures that affected other automakers in the October-December quarter.
Rajesh Jejurikar, Executive Director & CEO of M&M’s Auto and Farm Sector, stated, “We did not have to discount too much during the festival season and afterward, as a significant portion of our portfolio is supported by a robust demand pipeline.”
In terms of financial performance, M&M reported a standalone EBITDA margin of 15.4% for the quarter, an increase from 14.2% in the same quarter last year, although it was down from 18.2% in the previous quarter. The company’s standalone revenue rose by 20% year-on-year to ₹30,964 crore, with profit increasing by 19% to ₹2,964 crore. EBITDA reached ₹4,810 crore, reflecting a 32% year-on-year growth.
During the quarter, M&M sold over 245,000 vehicles, including SUVs, trucks, and three-wheelers, along with 120,000 tractors, marking nearly a 20% increase year-on-year. The strong financial results exceeded market expectations, with healthy margins driven by the farm equipment segment and robust demand for its vehicles.
