Can M&M Keep Its Pace in FY26?

Harvesting gains M&M's Q4FY25 farm equipment segment Ebit margin rose sharply year-on-year without any significant price hike.

- Manish Joshi

Mahindra & Mahindra Ltd's (M&M) standalone performance for the March quarter (Q4FY25) was commendable. A striking feature in Q4 results was the farm equipment segment's Ebit margin, which rose 366 basis points (bps) on-year to 19.4%, the highest in at least eight quarters.

Given that the segment's average selling price was flat on-year at ₹7.3 lakh, the margin improvement can be attributed to operating leverage from higher volumes, lower input costs and favourable model mix in different geographies, especially in the southern and western India.

A caveat here is that this margin should not be extrapolated into future projections. M&M's management has indicated Q4 margin was high as the industry's competitive intensity was lower than usual. If competition increases, the margin may revert to normalized levels.