Indian autogiant Mahindra & Mahindra saw its shares jump to as high as Rs 3,787 apiece, up 3 per cent, shortly after it posted its third-quarter results. However, as the day progressed, the rally eased, and the stock settled almost flat at Rs 3,674.90 at the NSE.
Mahindra & Mahindra reported its strongest-ever December quarter, riding on record SUV sales, steady tractor demand and a sharp rebound in services and tech businesses.
Consolidated profit after tax (PAT) for Q3 FY26 jumped 54 per cent to Rs 4,675 crore, while revenue rose 26 per cent to Rs 52,100 crore, taking annualised return on equity to 20.1 per cent.
Big jump in profit, broad-based growth
On a consolidated basis, Mahindra’s income from operations grew to Rs 52,100 crore in Q3 FY26 from Rs 41,470 crore in Q3 FY25, with PAT rising to Rs 4,675 crore from ₹3,181 crore.
Auto and farm equipment remained the profit engines for Mahindra. Automotive consolidated revenue climbed 30 per cent to Rs 30,370 crore, with segment PAT up 42 per cent to Rs 1,993 crore. Farm equipment revenue rose 21 per cent to Rs 11,501 crore, with PAT of Rs 1,044 crore, up 7 per cent despite international impairments.
Services businesses, including Mahindra Finance, Tech Mahindra, logistics, real estate and hospitality, delivered 21 per cent revenue growth to Rs 11,636 crore and doubled PAT to Rs 1,637 crore.
On a standalone basis, revenue grew 26 per cent year-on-year to Rs 38,942 crore, while PAT rose 33 per cent to Rs 3,931 crore.
Market leadership and standout segments
Mahindra reinforced its position as India’s leading SUV maker, with Q3 SUV revenue market share at 24.1 per cent, up 90 basis points year-on-year, and LCV (3.5T) market share at 51.9 per cent, up 10 basis points. Tractor market share stood at 44.0 per cent for the quarter and 44.1 per cent year-to-date.
Mahindra Finance’s PAT surged 97 per cent, supported by 12 per cent AUM growth and stable Stage 3 (GS3) assets at 3.8 per cent. Tech Mahindra’s EBIT margin improved to 13.1 per cent, up 290 basis points, on the back of strong deal wins. Among “growth gems”, Mahindra Logistics turned profitable after 11 quarters, while Mahindra Lifespaces delivered a fivefold jump in PAT and 71 per cent growth in residential pre-sales to Rs 572 crore.
Group CEO Anish Shah highlighted “solid operating performance across the portfolio”, while management underlined improving balance-sheet strength and rising contribution from services.
Labour codes come knocking
The quarter included notable one-offs, including a gain of Rs 479.74 crore from “income from investments related to subsidiaries, associates and joint ventures” in the consolidated results.
At the same time, the group booked Rs 292.94 crore as an exceptional expense towards higher retirement benefit obligations under India’s newly notified labour codes. On a standalone basis, the impact was Rs 98.19 crore.