M&M ‘comfortably covered’ for next two quarters amidst rare earth magnet crisis
Mahindra & Mahindra remains insulated from the rare earth magnet crisis, with no production disruption expected in the next two quarters. The automaker continues to post strong growth across SUVs, EVs, and tractors, backed by robust demand and proactive supply chain measures.
- Jul 30, 2025,
- Updated Jul 30, 2025 8:35 PM IST
Despite growing concerns about the rare earth magnet import ban from China, domestic automaker Mahindra & Mahindra is comfortably placed for the next two quarters, Rajesh Jejurikar, Executive Director and CEO, Mahindra & Mahindra (Auto & Farm), told reporters during the post-earnings call.
“We are comfortably covered. There has been no disruption in production. We are covered for the coming quarter and the next quarter. We have taken a variety of steps such as substituting the rare earth magnets with ferrite magnets. So, there are multiple actions that we have taken,” Jejurikar said.
Notably, in the first quarter of FY26, Mahindra & Mahindra posted a 32% year-on-year increase in net profit, reaching ₹3,450 crore for the quarter ended June 30, 2025, fuelled by strong demand for its high-margin SUVs and tractors. In the same quarter last year, the company had reported a net profit of ₹2,613 crore. Revenue from operations also grew 26%, rising to ₹34,143 crore in Q1 FY26 from ₹27,133 crore in Q1 FY25.
Mahindra & Mahindra’s electric vehicle (EV) division delivered a strong performance in Q1 FY26, posting an EBITDA of ₹111 crore on revenues of ₹2,800 crore owing to good traction for its electric SUV portfolio.
For the uninitiated, M&M’s EV operations are structured under M&M, which handles contract manufacturing, and Mahindra Electric Automobile Limited (MEAL), which handles retail and distribution of EVs.
Notably, electric SUV penetration in M&M’s SUV portfolio stood at 8% in Q1 FY26. “Our electric SUV penetration is now close to 8%, and the pace at which it is rising reflects the market’s growing confidence in our offerings,” said Jejurikar.
Meanwhile, in the LCV segment (below 3.5 tonnes), M&M gained 340 bps. “In Tractors, we gained 50 bps YoY to reach 45.2% market share, the highest ever in a quarter. Our Auto Standalone PBIT margin (excl. eSUV contract mfg.) improved by 50 bps to 10.0%, and core Tractor PBIT margins improved by 100 bps to 20.7%,” says Jejurikar.
Despite growing concerns about the rare earth magnet import ban from China, domestic automaker Mahindra & Mahindra is comfortably placed for the next two quarters, Rajesh Jejurikar, Executive Director and CEO, Mahindra & Mahindra (Auto & Farm), told reporters during the post-earnings call.
“We are comfortably covered. There has been no disruption in production. We are covered for the coming quarter and the next quarter. We have taken a variety of steps such as substituting the rare earth magnets with ferrite magnets. So, there are multiple actions that we have taken,” Jejurikar said.
Notably, in the first quarter of FY26, Mahindra & Mahindra posted a 32% year-on-year increase in net profit, reaching ₹3,450 crore for the quarter ended June 30, 2025, fuelled by strong demand for its high-margin SUVs and tractors. In the same quarter last year, the company had reported a net profit of ₹2,613 crore. Revenue from operations also grew 26%, rising to ₹34,143 crore in Q1 FY26 from ₹27,133 crore in Q1 FY25.
Mahindra & Mahindra’s electric vehicle (EV) division delivered a strong performance in Q1 FY26, posting an EBITDA of ₹111 crore on revenues of ₹2,800 crore owing to good traction for its electric SUV portfolio.
For the uninitiated, M&M’s EV operations are structured under M&M, which handles contract manufacturing, and Mahindra Electric Automobile Limited (MEAL), which handles retail and distribution of EVs.
Notably, electric SUV penetration in M&M’s SUV portfolio stood at 8% in Q1 FY26. “Our electric SUV penetration is now close to 8%, and the pace at which it is rising reflects the market’s growing confidence in our offerings,” said Jejurikar.
Meanwhile, in the LCV segment (below 3.5 tonnes), M&M gained 340 bps. “In Tractors, we gained 50 bps YoY to reach 45.2% market share, the highest ever in a quarter. Our Auto Standalone PBIT margin (excl. eSUV contract mfg.) improved by 50 bps to 10.0%, and core Tractor PBIT margins improved by 100 bps to 20.7%,” says Jejurikar.