SML Mahindra shares slip 5% as margin pressure offsets revenue growth
Published on 21/04/2026 10:14 AM
SML Mahindra shares slip 5% as margin pressure offsets revenue growthSML Mahindra plans to roll out electric buses, with an e-bus launch lined up for FY27.By Meghna Sen April 21, 2026, 10:14:35 AM IST (Published)1 Min ReadShares of SML Mahindra Ltd. declined as much as 5% on Tuesday, April 21, after the company reported its March quarter results, with margins coming under pressure due to higher input costs.
Material costs rose 26% sequentially and 16% year-on-year, weighing on profitability despite steady revenue growth.
For Q4FY26, net profit rose marginally by 2.36% to ₹54.2 crore from ₹53 crore a year ago, while revenue increased 16.4% to ₹898 crore from ₹771 crore.
EBITDA remained largely unchanged at ₹90.4 crore, leading to a margin contraction to 10.1% from 11.7% last year. Gross margins also declined to 21.6% from 24.5%.
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On the outlook, the company remains optimistic, targeting a market share of 10% to 12% over the medium term. Its product pipeline includes AC buses and ambulances, while entry into the intermediate commercial vehicle segment is expected to broaden its portfolio.
SML Mahindra also plans to roll out electric buses, with an e-bus launch lined up for FY27.
Brokerage firm Nomura said growth remains on track, adding that recent price hikes could help support margins in FY27.Continue ReadingTagsshare market today