Mahindra & Mahindra Limited

Strong group performance (profit surge) - Operating PAT +66% and Reported PAT +47% (difference explained by: labor code impact and a one-time Mahindra Finance reserve release last year that boosts operating numbers comparably). - Consolidated growth: Revenue +26%, Operating profit up strongly; group is operating on a very broad-based contribution across Auto, Farm, Mahindra Finance, Lifespaces, Logistics, Tech Mahindra. - Key “breakthroughs” by operating performance: - Mahindra Finance: +97% (operating) (reported down due to comparison items) - Lifespaces: 5x profits (operating) (profit recognition depends on occupation certificates) - Logistics: first profitable quarter in 11 quarters - Auto: +42% operating profit, Tech Mahindra: +35%, Farm: +7% (drag from international impairments; domestic operating performance strong)

Auto & Farm momentum: volume growth + margin expansion - Auto volume +23% (with SUV-led strength). SUV volume +26%; management noted Q2/Q3 averaging because Q2 had lower GST impact. - Auto margins +90 bps; EVs continue scaling (eSUVs sold ~41,000+ in quarter). - LCV recovery: LCV market share 51.9% and management says GST + replacement cycle helped; they emphasized this isn’t just short-term “pent-up”, it’s improving commercial viability. - Farm volume +23%; Farm machinery revenue +45% with strong momentum (core tractor margin ~21.2%). - Margin headwind in Farm: some international impairments caused consolidated Farm profitability to be less strong than domestic performance (domestic operating performance +64%).

Mahindra Finance: turnaround to growth mode (major strategic pivot) - Breakthrough driven by asset quality, controls, and technology over the last ~3 years—management says this is now enabling a pivot to growth. - They highlighted AUM +12% even before growth focus, while keeping GS3 below ~4% (they cite 4.5% as a benchmark, and are closer to it via policy changes). - New ECL policy aligned more with industry expected to support the business going forward. - Investor takeaway: credit underwriting improvements now allow a move from “stabilize/repair” → “diversify & grow faster.”