India’s Mahindra & Mahindra quarterly profit rises on strong SUV, tractor sales

FILE PHOTO: The logo of Mahindra Electric Origin SUVs is seen on the hood of the Mahindra XEV 9e, an electric SUV, during India’s five-day auto show in New Delhi, India, January 18, 2025. REUTERS/Priyanshu Singh/File Photo · Reuters

Reuters

Wed, 11 February 2026 at 3:53 pm GMT+9 1 min read

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M&M.NS

+1.31%

Feb 11 (Reuters) - Indian automaker Mahindra & Mahindra posted a nearly 33% rise in third-quarter profit on Wednesday, ‌after the country’s consumption tax cut propelled demand ‌for its sport utility vehicles and tractors.

The Scorpio SUV manufacturer’s profit rose ​to 39.31 billion rupees ($434.05 million) in the October-December period, but missed analysts’ estimate of 39.92 billion rupees, per data compiled by LSEG.

Mahindra took a one-time charge of 981.9 million ‌rupees tied to India’s ⁠recently enacted labour code.

In September, in a bid to boost consumption, India cut the goods ⁠and services tax rate on most cars to 18% from 28%. Tax on large SUVs like Mahindra’s XUV 7X0 ​was cut ​to 40% from about 50%, ​while on tractors it ‌was brought down to 5% from 12%.

Mumbai-based Mahindra is India’s largest tractor manufacturer by sales and second-largest carmaker this fiscal year with a portfolio made up entirely of feature-rich SUVs.

Its larger auto segment, comprising SUVs and small commercial ‌vehicles, accounts for about 73% of ​revenue. The smaller, but more ​profitable, farm business forms ​25%.

Mahindra’s SUV sales jumped nearly 26%, while ‌those of its tractors grew ​about 23%.

That helped ​boost quarterly revenue by 26% to 385.17 billion rupees.

Shares of the company, which were up 2.7% before the ​results, pared ‌some gains and were last up 1.5%.

($1 = 90.5650 Indian ​rupees)

(Reporting by Nandan Mandayam in Bengaluru; Editing by ​Janane Venkatraman and Harikrishnan Nair)

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