Mahindra and Mahindra is witnessing a strong momentum across its businesses, driven by robust performance in its auto, farm, EVs and non-auto businesses.
Upbeat on this growth, the Mumbai-headquartered firm– which reported a handsome 46.97 per cent growth in its consolidated net profit for Q3 FY26 to ₹4,674.64 crore– is planning to increase its capacity along with a new pipeline of launches to meet the rising demand.
“We expect to add 3,000–5,000 units of monthly ICE capacity by August–September of FY27 across Chakan and Nashik, alongside another 3,000–4,000 units for our BEV range through 9S, taking our combined ICE and EV capacity up by about 6,000–7,000 units a month,” said Rajesh Jejurikar – Executive Director & CEO (Auto & Farm Sector) at Mahindra and Mahindra, during the Q3 earnings call.
The company had earlier announced its plan to set up the largest manufacturing facility for automobiles and tractors in Nagpur, Maharashtra. However, it raised concerns about supply constraints that could temper near-term growth despite robust demand. “Demand is probably stronger than the way supply is able to ramp up,” Jejurikar said.
Key drivers during Q3
The auto and farm businesses remained the primary growth drivers during the third quarter, aided by rising volumes, market share gains and improved profitability. The Mumbai-based company reported revenue from operations of ₹51,579.95 crore, up 24 per cent.
SUV volumes grew 26 per cent with 1,79,000 units sold with revenue market share accounting for 24.1 per cent during the quarter. On the other hand, light commercial vehicle (LCV) volumes rose 20 per cent with 81,000 units sold during the period, dominating more than half of the market at 51.9 per cent.
On the farm equipment side, tractor volumes rose 23 per cent with 1,50,000 units sold in Q3 FY26.
“All our businesses have done exceedingly well…It’s not just a great quarter in terms of numbers, but also in terms of the underlying momentum that we are seeing across our businesses,” Dr. Anish Shah, Group CEO & MD, Mahindra Group.
Progress on PLI
Indian automaker’s management also reported progress under the government’s Production Linked Incentive (PLI) scheme, with key EV variants qualifying and additional models expected to meet eligibility criteria by Q1 FY27.
“Our XEV 9e portfolio has fully qualified under the PLI scheme, while higher-end variants of XEV-9S have already been approved. We expect the remaining variants and the B6 model to qualify by Q1 FY27,” said Jejurikar.
For XEV 9S, Pack 3 and Pack 3 are fully qualified while Pack 1 above & Pack 2 above is expected by Q1 F27.
Price hike
To offset rising costs linked to precious metals and currency movements, the management said there can be a potential price hike by a percentage point. The company also reported an one-time impact of labour code accounting for ₹220 crore. “The reported profit includes a ₹220 crore labour code impact. Across the group, the gross impact is about ₹565 crore, primarily driven by gratuity-related provisions,” said Amarjyoti Barua, President & Group CFO, Mahindra Group.
