Mahindra & Mahindra Reports Strong Farm Sector Growth, Faces Auto Sector Headwinds from GST Transition

Mahindra & Mahindra's CEO Anish Shah highlighted strong operational excellence in the farm sector, which drove the company's Q2 results. Rajesh Jejurikar, ED and CEO of Auto and Farm Sector, stated that growth guidance for the farm sector is being raised for FY26. Factors contributing to this surge include better monsoons, lower GST on tractors, improved Minimum Support Price (MSP) yields, continued government rural spending, and increased food produce exports.

The auto sector, however, experienced impacts from the transition to a new GST regime, logistics constraints, and container scarcity. Dispatches were held back before the GST rate changes effective September 22. Consequently, dealer inventory for ICE utility vehicles is low.

Despite these auto sector challenges, demand for higher trims of popular models like the Mahindra XUV700 and Mahindra Thar Roxx remains strong. Post-festive season demand has been unexpectedly robust, and November is anticipated to perform well for both auto and farm segments.

Regarding components, Mahindra & Mahindra is covered for rare-earth magnets for the financial year and has short-term coverage for Nexperia chips.

The company also reported selling over 30,000 units of its Born Electric lineup (BE6 and XEV9), with positive customer feedback and growing interest in South India, though the EV business is not yet a major profit contributor.

Financially, consolidated revenue rose 22% year-over-year to ₹46,106 crore, and consolidated Profit After Tax (PAT) grew 28% to ₹3,673 crore. The farm machinery segment achieved its highest-ever quarterly revenue.

**Impact**: This news significantly impacts the Indian stock market, particularly the auto and farm equipment sectors, by providing insights into the performance and outlook of a major player. The detailed financial results and segment-wise performance offer a clear picture of the company's operational health and strategic direction. Rating: 8/10.

**Definitions**: * GST (Goods and Services Tax): A consumption tax levied on the supply of goods and services. * MSP (Minimum Support Price): The price at which the government procures agricultural produce from farmers. * PAT (Profit After Tax): The profit a company has left after deducting all taxes. * Ebitda (Earnings Before Interest, Taxes, Depreciation, and Amortization): A measure of a company's operating performance. * ICE (Internal Combustion Engine): A type of engine that burns fuel to produce power.