Did Mahindra Just Achieve a 20% Increase in Net Profit?
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Synopsis
Mahindra and Mahindra Limited has reported a significant 20% rise in net profit for Q4 FY25, highlighting strong financial performance across its divisions. This growth comes alongside a substantial dividend announcement, reflecting the company's focus on strategic investments and market leadership.
Key Takeaways
- 20% increase in profit after tax
- Declared dividend of Rs 25.3 per share
- EBITDA rose by 39% to Rs 4,683 crore
- Auto volume growth of 18%
- Farm segment market share increased by 170 basis points
New Delhi, May 5 (NationPress) Mahindra and Mahindra Limited has showcased a robust performance for the January–March quarter of the financial year 2025 (Q4 FY25), achieving a remarkable 20 per cent increase in profit after tax (PAT).
The company reported a PAT of Rs 3,295 crore for the quarter, up from Rs 2,754 crore during the same period last fiscal year, as per its filing with the stock exchange.
Additionally, the car manufacturer’s revenue surged by 20 per cent year-on-year (YoY), reaching Rs 42,599 crore, compared to Rs 35,452 crore in Q4 FY24.
Mahindra and Mahindra has also declared a dividend of Rs 25.3 per share for its shareholders.
Group CEO and Managing Director, Anish Shah, attributed the impressive performance to “stellar execution,” highlighting that both the auto and farm segments captured market share while enhancing profitability.
He emphasized that Mahindra and Mahindra’s ongoing strategy is dedicated to delivering value through consistent performance and strategic investments.
The company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) experienced a 39 per cent rise to Rs 4,683 crore during the quarter, with the EBITDA margin improving to 14.9 per cent from 13.4 per cent in the previous year.
As per the company’s statements, these strong results were fueled by solid performance across all sectors, emphasizing a commitment to growth, execution, and disciplined capital allocation.
Both the auto and farm equipment divisions maintained their leadership positions in critical markets.
These segments achieved a 15 per cent growth in revenue and a 17 per cent increase in profits.
In the auto department, vehicle volumes rose by 18 per cent, while revenue market share improved by 310 basis points to 23.5 per cent.
The farm equipment segment also demonstrated strong growth, with volumes increasing by 23 per cent and market share up by 170 basis points to 43.3 per cent by the close of FY25.
The company also noted enhanced realisations, which were up by 5 per cent compared to the same time last year and 11 per cent higher than the previous quarter.
The financial services division recorded a 17 per cent growth in assets under management (AUM), while Tech Mahindra displayed improved business traction, with its EBIT margin increasing by 360 basis points.
On the National Stock Exchange (NSE) on Monday, shares of Mahindra and Mahindra were trading nearly 3 per cent higher at Rs 3,017.30.
Point of View
Mahindra and Mahindra's latest financial results showcase a consistent commitment to excellence and strategic growth. The company's ability to navigate market challenges and deliver robust profits is commendable, reaffirming its position as a leading player in the automotive and farm equipment sectors.
NationPress
23/05/2025
Frequently Asked Questions
What is Mahindra and Mahindra's profit increase percentage?
Mahindra and Mahindra reported a 20 per cent increase in profit after tax for Q4 FY25.
How much dividend has Mahindra declared?
Mahindra has declared a dividend of Rs 25.3 per share for its shareholders.
What contributed to Mahindra's strong financial performance?
The strong performance was attributed to stellar execution and growth in both the auto and farm segments.
What was the EBITDA growth for Mahindra?
Mahindra's EBITDA rose by 39 per cent to Rs 4,683 crore during the quarter.
How did Mahindra's auto division perform?
The auto division saw vehicle volumes grow by 18 per cent and revenue market share increase by 310 basis points.
