Mahindra & Mahindra Q4 Results Preview: Strong Growth Expected in Profit and Revenue, Top Brokerages Ratings

Mahindra & Mahindra (M&M), one of India's top automobile companies, is expected to report strong results for the fourth quarter of financial year 2024-25 (Q4FY25), with the official announcement scheduled for May 5. Experts expect M&M's standalone net profit to rise by 22.5% to Rs 2,450 crore, compared to Rs 2,000 crore in the same quarter last year. Revenue is likely to grow by 20%, reaching Rs 30,137 crore from Rs 25,183 crore. This growth is driven by higher vehicle sales and better pricing.

Market analysts are watching trends for the Anand Mahindra's company such as demand for tractors and passenger vehicles, bookings of electric vehicles (EVs), and the status of vehicle inventories and discounts. These will show how M&M is positioned in the market.

M&M EBITDA and Segment-wise Performance

The company's operating profit (EBITDA) is expected to rise by 26% to Rs 4,158 crore, up from Rs 3,298 crore last year. Operating margins are also expected to improve slightly to 13.8%, compared to 13.1% earlier. This indicates better cost control and efficiency.

M&M's auto segment margins may see a slight rise to 9%, while the agriculture segment, mainly tractors, is expected to do better with margins improving to 17% from 15.8%. The consolidated performance which includes all of M&M's group companies is also expected to be positive, though exact figures are not available yet.

Top brokerages' Expectations With M&M in Q4FY25

According to Motilal Oswal Financial Services, M&M is performing better than most other automakers, especially in its main businesses, SUVs and tractors. The company reported 15% growth in total sales volume, with tractor sales up 23% and auto sales up 18% year-on-year. However, the report adds that the recent launch of electric vehicles and price cuts on the XUV700 model in March 2025 may impact auto margins slightly.

Motilal Oswal expects the auto segment margin to drop slightly by 0.2% quarter-on-quarter to 9.5%, while tractor margins are likely to stay strong at 17.3%, up 1.5% year-on-year. They forecast revenue of ₹29,742.3 crore (up 18.1% YoY), EBITDA of ₹4,186.4 crore (up 14.1%), and net profit of ₹2,371.7 crore (up 18.6%).

Nuvama, another brokerage firm, expects M&M's strong revenue growth to continue, supported by higher sales volumes in both automotive and farm segments. They believe better realisations and strong tractor margins will boost profits.

Nuvama predicted revenue to grow by 22% year-on-year to Rs 30,744 crore, with EBITDA rising by 34% to ₹4,259.9 crore. Net profit is estimated at Rs 2,312.4 crore, up 16% from the previous year. They also highlight that the future demand for tractors and passenger vehicles will be key to the company's growth outlook.

Elara Capital has a slightly conservative view. They estimate M&M's revenue to grow by 18.4% year-on-year to Rs 29,805.7 crore, with EBITDA at Rs 4,053.6 crore (up 22.9%) and net profit at ₹2,248.9 crore, a growth of 12.4%. Elara also believes M&M's steady performance in core segments will keep it on a growth path.

ICICI Securities has upgraded its rating on M&M to "Add" and raised its target price to Rs 3,200 per share, up from Rs 2,922. "This is based on the company's continued strength in SUVs and tractors, and its focus on expanding electric vehicle offerings," the brokerage firm mentioned.

M&M Financial Overview

For the quarter ending December 2024, M&M reported a consolidated total income of Rs 41,881.38 crore, a rise of nearly 17% compared to the same quarter last year. Net profit for that period stood at Rs 3,317.22 crore. As of March 2025, promoters held 18.45% of the company's shares, while Foreign Institutional Investors (FIIs) held 38.3% and Domestic Institutional Investors (DIIs) held 29.65%.

M&M recently agreed to acquire a 58.96% majority stake in SML Isuzu Ltd, a company known for its light and medium commercial vehicles. SML holds a strong position in the ILCV (Intermediate Light Commercial Vehicle) bus segment with around 16% market share and is preparing to launch its first electric bus. Analysts believe this deal will help M&M achieve better cost control and supply efficiency.

About M&M

M&M, founded in 1945, remains one of the country's largest automobile makers with a market value of Rs 3.63 lakh crore. It earns most of its revenue from sales of tractors, SUVs, passenger cars, and commercial vehicles. With new EV launches and strategic investments, the company is focused on future growth and strengthening its position in the Indian auto market.