M&M earnings: Firm raises growth outlook for tractor business, cites these key factors  

Automaker Mahindra & Mahindra (M&M) has raised the growth outlook for the tractor business to double digits. The outlook now stands between 10% to 12% from 5% to 7% in the beginning of the year. The positive stance also reflects in its Q2 earnings where in the core business, the tractor segment saw a very strong growth of PAT of over 50%. 

Rajesh Jejurikar, Executive Director and CEO of Auto and Farm Sector at Mahindra and Mahindra expects a positive momentum in the market due to the festive season and GST is one key enabler. Listing out the other factors behind the earnings show, Jejurikar told Business Today that the rains and reservoir levels were good and positively impacted the company's business. 

Jejurikar also attributed strong government spending in rural areas, farm exports apart from the recent GST cut as rural enablers for growth of the tractor business. He also cited all these factors for raising the growth outlook for the tractor business. 

The auto firm released a strong set of earnings for the September 2025 quarter. Net profit rose 18% led by robust demand for its high-margin sport utility vehicles (SUVs) and tractors.

Profit in the last quarter came at Rs 4,521 crore on a revenue of Rs 35,080 crore, which jumped 21% from Rs 28,919 crore in the year-ago quarter.

Jejurikar mentioned that consolidated PAT leaving out the exceptional items, which were all one-offs was about 28% growth. The company said growth in PAT excludes one time gain on land sale in second quarter of FY25.

"That's enabled by multiple segments doing well. So, in the core business, the tractor segment had a very strong growth of PAT of over 50%. The auto business had a 14% growth. The auto business actually was partially affected by the inability to do dispatches through the month of September, which of course got made up in October where we had more than a 30% growth in volumes," said Jejurikar. 

The earnings before interest, tax, depreciation and amortisation (EBITDA) rose 23% y-o-y to Rs 6,467 crore in the September quarter from Rs 5,270 crore in the same quarter last year. Operating margins improved by nearly 21 basis points (bps) y-o-y to 18.43% in Q2 FY26 from 18.22% in Q2 FY25.

Jejurikar also mentioned that around November 27, the company will reveal a new electric car. "We call it the big electric SUV. We have put out pieces around that and more on that over the next few days," he added.