Mahindra & Mahindra Limited

Strong all-round performance; key growth metrics beat expectations - Group Operating PAT +66% YoY; Reported PAT +47% YoY. - Normalized view: +54% operating profit growth excluding Mahindra Finance reserve-release onetime from last year; and +47% after excluding labor code impact. - Revenue +26% (consolidated); Operating profit growth broad-based across businesses with “growth gems” (Mahindra Finance, Lifespaces, Logistics) plus Auto & Tech Mahindra contributing.

Business momentum: Auto and Farm volumes up sharply; margins improve - Auto: Volume +23% (SUV engine is the driver). - SUV volume +26% YoY; management says averaging Q2/Q3, underlying demand remains strong (GST transition helped Q2 spillover into Q3). - Auto margins +90 bps. - LCV market-share +10 bps to 51.9%; LCV demand revived (replacement cycle + GST-driven improved operator economics). - Farm & tractors: Volume +23% YoY. - Farm machinery revenue +45% (turnaround momentum). - Core tractor margin ~21.2%, close to best-in-class band for like-to-like. - Some impairment drag in international farm-related entities (explicitly mentioned as a drag on consolidated Farm numbers).

“Breakthrough” theme from Mahindra Finance, Lifespaces and Logistics—pivot to growth - Mahindra Finance: - Operating performance +97%, but reported -9% (accounting/one-time effects). - Over last 3 years focus was asset quality, controls, technology, and management build-out; now it is pivotal: pivot to growth announced (expected faster growth + diversification going forward). - Lifespaces (real estate): profits up 5x operating; management caveats P&L depends on occupation certificates, but execution quality and speed of project completion is improving. - Land acquisition strong, including Mitsui Fudosan external investment (announced recently), increasing confidence in future ramp. - Logistics: first profitable quarter in 11 quarters; breakthrough driven more by execution and leadership changes (Hemant Sikka + key team additions) than just timing.