SML ISUZU LIMITED was incorporated as Swaraj Vehicles Ltd in 1983 and was promoted by Punjab Tractors Ltd with technical collaboration Mazda Motor Corporation, Japan, and Sumitomo Corporation, Japan. In 2004, the technical collaboration agreement with Mazda expired 2004 and sold its entire stake to Sumitomo Corporation and in the same time, it signed a technical assistance agreement with Isuzu Motors. In 2011, it was renamed as SML ISUZU and Sumitomo Corporation(Japan) and Isuzu Motors (Japan) own 44% and 15% stake, respectively. Presenting below are its Q2 FY26 earnings results.
Q2 FY26 Earnings Results
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Revenue from Operations: ₹555.11 crore, flat YoY (up 0.98%) vs ₹549.71 crore in Q2 FY25, but down 34.4% QoQ from ₹845.89 crore in Q1 FY26 due to seasonal monsoon impact on infrastructure and transport activity.
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Profit Before Tax (PBT): ₹28.28 crore, down 0.9% YoY from ₹28.53 crore, and down sharply QoQ (₹89.8 crore in Q1 FY26).
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Net Profit (PAT): ₹21.05 crore, a 3.4% YoY drop (₹21.8 crore in Q2 FY25) and down 68.5% QoQ from ₹66.96 crore in Q1 FY26.
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Operating Profit Margin: 7.55% (vs 12.41% in Q1 FY26 and 8.15% in Q2 FY25), reflecting a contraction of 486 basis points sequentially.
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EPS (Standalone): ₹14.55 vs ₹46.3 in Q1 FY26.
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Total Expenses: ₹528.95 crore (up 1.19% YoY), driven by higher raw material and employee costs.
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Raw Material Cost: ₹448.05 crore (+23.54% YoY).
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Employee Benefits: ₹56.73 crore (+15.9% YoY).
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H1 FY26 Performance: Revenue ₹1,401 crore, net profit ₹88.0 crore—up 29% YoY—indicating strong first-half momentum despite Q2 weakness.
Management Commentary & Strategic Updates
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Management noted that the Q2 slowdown was seasonal, consistent with typical monsoon-driven weakness in construction and logistics sectors, but emphasized solid improvement in demand visibility for H2 FY26.
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SML Isuzu (to be rebranded SML Mahindra Limited) is now strengthening synergies under Mahindra’s commercial vehicle ecosystem—leveraging shared distribution, component supply chain, and R&D support from M&M.
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The company maintained focus on fuel-efficient diesel and CNG models while preparing to scale its Hiroi EV Manch electric bus line within the e-mobility segment by FY27.
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Management highlighted lower debt (₹248.79 crore vs ₹321.78 crore in FY25) and improved receivables management contributing to stable liquidity, even during a weak operational quarter.
Operational and Business Highlights
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Production & Sales: Output moderated due to rain-related disruptions; urban bus and cargo carrier segments saw temporary demand softness.
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Dealership Expansion: Added new dealerships in Ranchi and Nagpur as part of a nationwide presence expansion strategy.
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Mahindra Integration: Mahindra & Mahindra’s safety, drivetrain, and digital logistics technologies expected to strengthen upcoming LCV and MCV ranges.
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EV Development: Ongoing pilot trials of electric buses and staff carriers; early-stage orders expected in FY27.
Q1 FY26 Earnings Results
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Revenue: ₹845.89 crore, up 13.4% YoY.
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Net Profit: ₹66.96 crore, up 44% YoY.
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EBITDA: ₹105.01 crore (+29.8% YoY); margin at 12.4%.
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EPS: ₹46.27.
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Highlights: Strong traction in light and medium-duty CVs and school bus segments; highest quarterly profit in three years
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.