Mahindra & Mahindra Limited

Strong group profitability growth (and what drove it) - Operating PAT +66% YoY; Reported PAT +47% YoY (difference due to labor code impact and a one-time reserve release at Mahindra Finance last year). - Revenue +26% YoY; cash generation was described as very strong. - Key bridge detail: INR 220 crore labor code impact at group level (gross INR 565 crore across companies). Also, impairments were largely offset by a CIE gain, so operating performance wasn’t helped much by that one-off.

“Breakthrough” execution in Growth engines - Mahindra Finance (MF): Operating profit +97%; reported down -9% (timing/accounting effects). Management said MF has now pivoted to growth after 3 years focused on asset quality, controls, and technology, enabling faster growth & diversification from here. - Lifespaces (real estate): Operating profits up 5x, with emphasis that profitability is now more visible as projects move toward execution/completion; external investor Mitsui Fudosan announced recently, and project traction/urgency highlighted. - Logistics: First profitable quarter after 11 quarters—breakthrough linked more to execution/leadership changes (Hemant Sikka and key hires) than just the headline profit.

Auto outlook: demand resilience, GST helps commercial segments; EV not “GST-arbitrage” driven - SUV volumes +26%; margins +90 bps (management noted some distortion from GST transition in Q2 spilling into Q3; they pointed to average impact conceptually). - LCV revival: GST cut + replacement cycle improving; management sees it as sustained, not merely short-lived “pent-up”. - EV products: strong response and adoption story (e.g., 41,000+ eSUVs sold in the quarter; “mainstream usage” emphasized). Management stated EV pricing/channel dynamics are less about GST arbitrage because they sit above the sub-4m threshold where EV/ICE price advantages narrow. - EV content/PLI status: management said all variants should be PLI-approved by Q1 (remaining approvals in progress for 9S and BE6).