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Mahindra & Mahindra Ltd. (M&M) shares rose over 2 per cent on Monday, May 5, after the company reported a strong set of numbers for the fourth quarter of FY25. The automobile and farm equipment major beat Street estimates on key metrics including revenue and operating profit, aided by broad-based growth, robust demand and better realisation across segments.

The stock was quoting at Rs 2,990.7 apiece on the NSE, up 2.2 per cent intraday. Notably, M&M had already rallied 20 per cent in the past one month ahead of the results, signalling strong investor anticipation.

Consolidated revenue jumped 24.5 per cent year-on-year to Rs 31,353 crore in Q4FY25, outperforming CNBC-TV18’s estimate of Rs 30,137 crore. The company attributed the strong topline performance to execution excellence, growth momentum, and disciplined capital allocation.

Net profit stood at Rs 2,437 crore, broadly in line with estimates of Rs 2,450 crore, registering a 19.6 per cent year-on-year growth. However, it was the operating performance that stood out. EBITDA surged 39 per cent to Rs 4,683 crore, beating expectations of Rs 4,158 crore.

EBITDA margin expanded sharply to 14.9 per cent from 13.4 per cent in Q4FY24, marking a clear beat over the expected 13.8 per cent.

In the Auto segment, volumes rose 18 per cent YoY, while revenue market share increased by 310 basis points to 23.5 per cent. Farm equipment volumes grew by 23 per cent year-on-year, with M&M’s market share in the segment reaching 43.3 per cent — up 170 bps for FY25.

Realisation per unit improved 5 per cent YoY and 11 per cent sequentially, indicating pricing power and a richer product mix. The company generated nearly Rs 10,000 crore in cash during FY25.

“Our results include nearly Rs 10,000 crore of cash generation in FY25, giving us the ability to drive long-term shareholder value through strategic investments,” said Amarjyoti Barua, Group CFO, Mahindra & Mahindra.

The company has declared a dividend of Rs 25.3 per share for FY25.

Analysts say the Q4 print strengthens M&M’s long-term positioning in the auto and agri sectors. The volume growth, healthy margin trajectory, and strong free cash flow generation have kept the stock in favour among institutional investors.

With continued leadership in farm equipment and rising SUV market share, M&M is seen as a strong structural story. Investors may look to accumulate the stock on dips with a long-term view, say experts.

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