Mahindra & Mahindra Ltd Reports Very Positive Quarterly Financial Performance with Record Metrics

Quarterly Revenue and Profit Growth

In the December 2025 quarter, M&M recorded net sales of ₹52,099.75 crore, the highest quarterly revenue in its recent history. This represents a marked acceleration compared to previous quarters and underscores the company’s ability to capitalise on growing demand in both domestic and international markets. The revenue growth is particularly notable given the broader automobile industry’s mixed performance amid fluctuating raw material costs and evolving consumer preferences.

Operating profit before depreciation and interest (PBDIT) also reached a record ₹10,106.54 crore, signalling effective cost management and margin expansion. The operating profit to interest coverage ratio improved to 4.20 times, the highest in recent quarters, indicating enhanced financial stability and reduced vulnerability to interest rate fluctuations.

Margin Expansion and Profitability Metrics

Profit before tax (PBT) less other income stood at ₹6,003.04 crore, while profit after tax (PAT) surged to ₹4,898.58 crore, both figures marking all-time highs for the company on a quarterly basis. Earnings per share (EPS) correspondingly increased to ₹41.84, reflecting strong bottom-line growth and shareholder value creation.

The return on capital employed (ROCE) for the half-year period ending December 2025 was an impressive 14.77%, the highest recorded in recent years. This metric highlights M&M’s efficient utilisation of capital resources to generate profits, a critical factor for sustaining long-term growth in the capital-intensive automobile industry.

Balance Sheet Strength and Capital Structure

M&M’s balance sheet remains robust, with cash and cash equivalents rising to ₹22,265.37 crore for the half-year period, providing ample liquidity to support ongoing investments and operational needs. The company’s debt-to-equity ratio has improved to 1.53 times, the lowest in recent history, signalling a prudent approach to leverage and risk management.

This conservative capital structure, combined with strong cash reserves, positions M&M favourably to navigate potential market volatility and invest in future growth initiatives such as electric vehicles and digital transformation.

Stock Performance Relative to Market Benchmarks

Mahindra & Mahindra’s stock price closed at ₹3,674.65 on 11 Feb 2026, marginally down by 0.02% from the previous close of ₹3,675.40. The stock has traded within a 52-week range of ₹2,360.45 to ₹3,840.00, reflecting significant appreciation over the past year.

When compared to the broader Sensex index, M&M has outperformed substantially over multiple time horizons. The stock delivered a 19.13% return over the past year versus Sensex’s 10.41%, and an impressive 169.17% return over three years compared to Sensex’s 38.81%. Over five and ten years, the stock’s cumulative returns stand at 302.00% and 552.69% respectively, far exceeding the benchmark’s 63.46% and 267.00% gains.

Industry and Sector Context

Operating within the automobile sector, M&M benefits from a diversified product portfolio spanning utility vehicles, tractors, and electric vehicles. The sector has witnessed a gradual recovery post-pandemic, supported by rising consumer demand, government incentives for green mobility, and technological advancements.

M&M’s very positive financial trend change from positive to very positive is a testament to its strategic initiatives, including cost optimisation, product innovation, and expansion into new markets. The company’s mojo score of 77.0 and upgraded mojo grade from Hold to Buy as of 6 Feb 2026 further reinforce investor confidence in its growth trajectory.

Outlook and Investor Considerations

With no key negative triggers identified in the recent quarter, M&M’s outlook remains constructive. The company’s ability to sustain high revenue growth, expand margins, and maintain a strong balance sheet provides a solid foundation for future performance. Investors should note the company’s strategic focus on electric vehicles and digital initiatives, which could drive incremental growth and market share gains in the coming years.

However, potential risks include raw material price volatility, regulatory changes, and competitive pressures within the automobile sector. Monitoring these factors alongside quarterly earnings will be crucial for assessing M&M’s ongoing financial health and stock performance.

Conclusion

Mahindra & Mahindra Ltd’s very positive quarterly results for December 2025 highlight a company in strong operational and financial health. The significant improvements in revenue, profitability, capital efficiency, and balance sheet metrics underpin the recent upgrade in mojo grade to Buy. Coupled with robust stock market returns relative to the Sensex, M&M presents a compelling case for investors seeking exposure to the Indian automobile sector’s growth story.

As the company continues to execute on its strategic priorities and capitalise on emerging opportunities, it remains well-positioned to deliver sustained value to shareholders.

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