{"id":166967,"date":"2025-02-19T05:51:55","date_gmt":"2025-02-19T10:51:55","guid":{"rendered":"https:\/\/44.250.171.167\/?p=166967"},"modified":"2025-02-19T06:02:01","modified_gmt":"2025-02-19T11:02:01","slug":"mm-q3-2024-2025-call-highlights-ev-boom-tractor-gains-and-market-expansion","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/mm-q3-2024-2025-call-highlights-ev-boom-tractor-gains-and-market-expansion\/","title":{"rendered":"M&#038;M Q3 2024-2025 Call Highlights: EV Boom, Tractor Gains and Market Expansion!"},"content":{"rendered":"<p>Mahindra &amp; Mahindra Ltd., a diversified Indian conglomerate known for its significant presence in the automotive, farming equipment, and financial services sectors, in its Q3 earnings call reported strong EV interest, particularly from luxury car owners, with bookings opening across 250 plus dealerships on February 14th. Management mentioned that while EVs will have lower percentage margins than ICE vehicles, EBIT profitability per vehicle will be similar after PLI benefits, and the company is taking a measured production ramp-up approach to ensure quality. The company plans to increase ICE vehicle production capacity for 3&#215;0 and ROXX by 1,500-2,000 units each within 3-4 months. The company also reported strong tractor market share growth but noted concerns about slower LCV segment growth despite favorable conditions.<\/p>\n<p>Mahindra &amp; Mahindra delivered exceptional Q3 results across its business units, with M&amp;M&#8217;s consolidated net profit rising approx.. 20% on revenue growth of 20%. The automotive division achieved 16% volume growth with SUV market share gaining 200 basis points and maintaining 51.9% LCV market share. The farm equipment business reached a record Q3 market share of 44.2% with 20% volume growth. Mahindra Financial Services was a standout performer, with net profit surging 62.7% to INR899.5 crore and a remarkable 97% reduction in impairment charges following credit model recalibration. Despite some challenges including international farm headwinds and measured EV production ramp-up, the company maintained strong ROE around 18% with EPS growth exceeding its 15-20% target. Key product successes included the XUV 3&#215;0, five-door Thar variant, new electric SUVs BE 6 and XEV 9e.<\/p>\n<p>Continue Reading: Discover the Vital Insights from Mahindra &amp; Mahindra Ltd.&#8217;s Earnings Call!<\/p>\n<p><strong>Financial\/Operational Metrics:<\/strong><\/p>\n<ul>\n<li><strong>Total Revenue:<\/strong> INR41,470 crore, up 17% YoY.<\/li>\n<li><strong>Net Profit<\/strong>: INR3,181 crore, up 20% YoY.<\/li>\n<li><strong>Basic EPS<\/strong>: INR28.51, up 19% YoY.<\/li>\n<li><strong>Total Vehicles Sold<\/strong>: 2,45,499 units, up 16% YoY.<\/li>\n<li><strong>Total Tractors Sold<\/strong>: 1,20,624 units, up 20% YoY.<\/li>\n<\/ul>\n<p><strong>Outlook:<\/strong><\/p>\n<ul>\n<li><strong>Auto and Farm Business: <\/strong>Continued focus on margin expansion. Strength in SUV market share and new electric origin SUVs.<\/li>\n<li><strong>Farm Industry: <\/strong>Expected to grow over 15% in Q4, leading to 7% plus full-year growth.<\/li>\n<li><strong>EV Strategy: <\/strong>Premium positioning based on design, HMI, and high-tech features.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong>Analyst Crossfire:<\/strong><\/p>\n<ul>\n<li><strong>EV Market Learnings &amp; Strategy (Analyst): <\/strong>The 500 km range and battery warranty have successfully addressed major consumer concerns. Initial demand is strong, with customers from premium segments showing interest. Charging infrastructure remains crucial for long-term growth, but initial adopters are multi-car owners who are less reliant on public charging<strong> (Rajesh Jejurikar, ED &amp; CEO, Auto &amp; Farm Sectors).<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>EV Booking\/Customer Profile &amp; Demand Expansion (Analyst): <\/strong>Due to high demand, the company expanded its initial rollout from 20 cities to 250+ dealership outlets by February 14. Many Phase-3 markets requested earlier access, prompting this expansion. A significant portion of bookings are from new-to-Mahindra customers who typically buy luxury brands in the \u20b925-30 lakh segment, indicating strong aspirational appeal.<strong> (Rajesh Jejurikar, ED &amp; CEO, Auto &amp; Farm Sectors).<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Tractor Market Share Growth, Inventory &amp; Outlook (Analyst): <\/strong>The Swaraj brand transformation and filling product gaps in 20-30 HP segment drove market share gains. Growth in South and West India contributed to positive momentum. Inventory corrections were completed in Q3, ensuring no significant adjustments in Q4. Market share growth was achieved despite inventory reductions.<strong> (Anish Shah, Group CEO &amp; MD)<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>LCV Segment Growth Lag, EV Profitability &amp; PLI Benefits (Analyst): <\/strong>Despite strong tractor growth, the 2-3.5T LCV segment has only single-digit growth, which is unexpected given economic recovery. No clear explanation yet, but the company remains hopeful for improvement. EBIT per vehicle factors in PLI benefits, which are critical for cost competitiveness and ROI. Long-term margins should align with ICE vehicles as cost structures improve<strong> (Anish Shah, Group CEO &amp; MD)<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Auto EBIT Margin &amp; One-Offs, ICE Capacity Constraints &amp; Debottlenecking (Analyst): <\/strong>The 9.7% EBIT margin does not include marketing spend for the EV unveil, which is accounted for separately in the consolidated auto results (8.6% EBIT). Price hikes totaled 1.5% (0.7% YTD Dec + 0.8% in Jan). Gasoline demand for 3XO exceeded projections, requiring capacity expansion. Production will increase by ~2,000 units in the next 3-4 months. Rox capacity is being optimized with full fungibility between 3-door and 5-door models<strong> (Rajesh Jejurikar, ED &amp; CEO, Auto &amp; Farm Sectors)<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Contract Manufacturing &amp; Transfer Pricing, Auto Export Strategy (Analyst): <\/strong>M&amp;M earns margins only on conversion costs and product development expenses, not on raw material costs. Product capex is booked in Mahindra Electric (MEAL), separate from transfer pricing. Phase 1 expansion focuses on existing markets (South Africa, Australia, New Zealand, Chile). Phase 2 will introduce a global lifestyle pickup for both LHD and RHD markets<strong> (Rajesh Jejurikar, ED &amp; CEO, Auto &amp; Farm Sectors)<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mahindra &amp; Mahindra Ltd., a diversified Indian conglomerate known for its significant presence in the automotive, farming equipment, and financial services sectors, in its Q3 earnings call reported strong EV interest, particularly from luxury car owners, with bookings opening across 250 plus dealerships on February 14th. Management mentioned that while EVs will have lower percentage [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":162998,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,5753],"tags":[10023,10169],"class_list":["post-166967","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-industrials","tag-automobile-industry","tag-earnings"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":168257,"url":"https:\/\/alphastreet.com\/india\/mm-q4-call-highlights-ev-surge-tractor-triumphs-and-future-innovations\/","url_meta":{"origin":166967,"position":0},"title":"M&#038;M Q4 Call Highlights: EV Surge, Tractor Triumphs and Future Innovations!","author":"Praveen","date":"May 6, 2025","format":false,"excerpt":"Mahindra & Mahindra Ltd., a prominent Indian multinational conglomerate, that operates in various sectors including automotive, farm equipment, and financial services, in its Q4 earnings call highlighted robust growth strategies across its EV and tractor businesses. The EV segment saw 75% of bookings for high-end \"pack 3\" models, with plans\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":158817,"url":"https:\/\/alphastreet.com\/india\/mahindra-mahindra-limited-q3-fy24-earnings-conference-call-insights\/","url_meta":{"origin":166967,"position":1},"title":"Mahindra &#038; Mahindra Limited Q3 FY24 Earnings Conference Call Insights","author":"Praveen","date":"February 15, 2024","format":false,"excerpt":"Key highlights from Mahindra & Mahindra Limited (M&M) Q3 FY24 Earnings Concall Auto\/Farm Performance Mahindra Auto continues strong momentum, gaining SUV market share to 21% and becoming #1 in SUVs. Mahindra at 49.6% market share in LCVs after gaining significantly. Auto performance showing benefits of strategic focus on SUVs and\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":169618,"url":"https:\/\/alphastreet.com\/india\/mahindra-mahindra-ltd-q1-fy26-earnings-results-23-rise-in-profits\/","url_meta":{"origin":166967,"position":2},"title":"Mahindra &#038; Mahindra Ltd Q1 FY26 Earnings Results &#8211; 23% rise in Profits","author":"Chirag Gupta","date":"July 31, 2025","format":false,"excerpt":"Mahindra & Mahindra Ltd is one of the most diversified automobile company in India with presence across 2-wheelers, 3-wheelers, PVs, CVs, tractors & earthmovers. Presenting below are its latest Q1 FY26 earnings. Q1 FY26 Earnings Summary (Apr\u2013Jun 2025) Consolidated Revenue:\u00a0\u20b945,529 crore, up 22% year-over-year (YoY) from \u20b937,218 crore in Q1\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"Mahindra & Mahindra Q1 FY26 Earnings Results","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/07\/5-4.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/07\/5-4.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/07\/5-4.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/07\/5-4.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/07\/5-4.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/07\/5-4.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":172319,"url":"https:\/\/alphastreet.com\/india\/mahindra-mahindra-q2-fy26-earnings-results\/","url_meta":{"origin":166967,"position":3},"title":"Mahindra &#038; Mahindra Q2 FY26 Earnings Results","author":"Chirag Gupta","date":"November 11, 2025","format":false,"excerpt":"Mahindra & Mahindra Ltd is one of the most diversified automobile company in India with presence across 2-wheelers, 3-wheelers, PVs, CVs, tractors & earthmovers. \u00a0 Q2 FY26 Earnings Results: Revenue from Operations (Consolidated): \u20b946,106 crore, up 22% YoY from \u20b937,924 crore in Q2 FY25 Consolidated Profit After Tax (PAT): \u20b93,964\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"Mahindra & Mahindra Q2 FY26 Earnings Results","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/Mahindra-Mahindra-Q2-FY26-Earnings-Results.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/Mahindra-Mahindra-Q2-FY26-Earnings-Results.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/Mahindra-Mahindra-Q2-FY26-Earnings-Results.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/Mahindra-Mahindra-Q2-FY26-Earnings-Results.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/Mahindra-Mahindra-Q2-FY26-Earnings-Results.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/11\/Mahindra-Mahindra-Q2-FY26-Earnings-Results.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":144113,"url":"https:\/\/alphastreet.com\/india\/mahindra-cie-automotive-q4fy23-earnings\/","url_meta":{"origin":166967,"position":4},"title":"Mahindra CIE Automotive Q1CY23 Earnings","author":"Karan_Singh","date":"April 25, 2023","format":false,"excerpt":"Mahindra A Spanish subsidiary of CIE Automotive S.A. is CIE Automotive Limited. In addition, Mahindra Vehicle Manufacturing Ltd. has a sizable amount of stock in the business. Production and sales of automobile components to original equipment manufacturers and other clients in India and abroad are the company's main business activities.\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"GABRIEL","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/10\/iStock-1320950393.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/10\/iStock-1320950393.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/10\/iStock-1320950393.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/10\/iStock-1320950393.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":163590,"url":"https:\/\/alphastreet.com\/india\/mahindra-4-fall-in-profits\/","url_meta":{"origin":166967,"position":5},"title":"Mahindra &#038; Mahindra Ltd Q1FY25; 4% fall in Profits","author":"Chirag Gupta","date":"August 5, 2024","format":false,"excerpt":"Mahindra & Mahindra Ltd is one of the most diversified automobile company in India with presence across 2-wheelers, 3-wheelers, PVs, CVs, tractors & earthmovers. Financial Results: Mahindra & Mahindra Ltd reported Revenues for Q1FY25 of \u20b937,218.00 Crores up from \u20b933,892.00 Crore year on year, a rise of 9.81%. Total Expenses\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/08\/image-25.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/08\/image-25.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/08\/image-25.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/08\/image-25.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/08\/image-25.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/08\/image-25.png?resize=1400%2C800&ssl=1 4x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/166967","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=166967"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/166967\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/162998"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=166967"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=166967"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=166967"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}