Will EVs speed up M&M's growth?

Mahindra & Mahindra Ltd's (M&M) shares have gained as much as 86% in the past one year on strong outlook and are now hovering near their 52-week highs of ₹3,270.55 seen on Tuesday.

- Ashish Agrawal

While the December quarter (Q3FY25) results announced on Friday are strong, they are on expected lines.

Standalone Ebitda grew 38% year-onyear to 4,500 crore, comparing favourably with the 24% growth seen in the half-year ended September (HIFY25).

Profitability was driven by margin improvements across auto and farm equipment segments. Better realization and higher volumes meant Ebitda per unit grew 17% to 1,32,000.

M&M's revenue was up 21% last quarter to ₹30,500 crore. Auto segment revenue grew 21%, higher than volume growth of 16%, helping the company improve its Ebit margin by 120 basis points (bps) to 9.7%. Within auto, the key sports utility vehicles (SUVS) portfolio saw 20% volume growth with market share improvement. The company is facing capacity constraints for the petrol version of its recently launched models, 3XO and Thar Roxx, across domestic and exports markets even though the diesel variant has received less traction.