Mahindra & Mahindra Projects SUV-Led Growth Amid Strong FY25 Earnings
|2025-05-06
Mahindra & Mahindra, India’s largest SUV manufacturer, expects its SUV portfolio—including electric vehicles—to drive strong growth in the financial year 2025–26 (FY26)
Mahindra & Mahindra anticipates double-digit SUV growth in FY26 after reporting a 20% profit rise in FY25, driven by robust demand and product innovation.
Mahindra & Mahindra Forecasts SUV Growth in FY26 Following Profit Surge
Mahindra & Mahindra Limited, India’s largest producer of sport utility vehicles (SUVs), has projected continued momentum in its SUV portfolio for the financial year 2025–26 (FY26), following a strong earnings performance in FY25.
The company reported a consolidated profit after tax of ₹12,929 crore for the year ending March 2025, a 20% increase over the previous fiscal period. Consolidated revenue also rose 14% to ₹159,211 crore. Mahindra’s leadership expects the SUV segment, including its electric offerings, to register mid- to high-teens percentage growth in FY26.
Strong Demand and Strategic Product Line-Up
Speaking after the company’s Q4 results, Rajesh Jejurikar, Executive Director and Chief Executive Officer – Auto and Farm Sectors at Mahindra & Mahindra, attributed the positive outlook to the strength of the company’s vehicle line-up. “We continue to stay positive given our product portfolio, and we will look at mid-to-high teens for SUVs in FY26, which includes electric vehicles,” Jejurikar said.
Mahindra’s SUV volume grew by 20% during FY25, with the company’s revenue market share in the segment rising to 22.5%, up 210 basis points from the previous year.
Anish Shah, Group CEO and Managing Director, noted that high consumer demand is being fuelled by the uniqueness and quality of Mahindra’s products. “The products that we have are generating a very high demand,” Shah stated. “Many of them are particularly unique, such as Thar, Scorpio N and our new electric vehicles.”
Quarterly Results Beat Market Expectations
In the fourth quarter of FY25, Mahindra posted a 20% year-on-year rise in consolidated profit, reaching ₹3,295 crore. Quarterly revenue also increased by 20% to ₹42,599 crore. The company’s automotive segment led growth, with quarterly revenue rising to ₹25,902 crore, a 24% year-on-year increase.
Mahindra’s farm equipment division reported revenue of ₹7,933 crore in the final quarter, a 17% increase. The financial services segment also expanded by 14% year-on-year in Q4, though profits for that segment declined during the quarter. Overall, the group maintained profitability and posted gains across most of its verticals.
No Slowdown Yet in Urban Demand
Despite macroeconomic uncertainties, Mahindra has not yet observed a notable decline in urban consumer activity. “We haven’t seen that much of a slowdown in the urban market, though there is no doubt that the urban economy at the moment is much tighter,” Jejurikar noted.
However, the company remains cautiously optimistic and anticipates conditions to improve in the latter half of FY26.
Future Plans: New Product Platform and Manufacturing Expansion
Mahindra is set to unveil a new vehicle platform on 15 August 2025. According to company executives, the platform will form the basis for a new series of vehicles. To support expected growth, Mahindra plans to increase production capacity by 120,000 units per year at its Chakan plant in the western Indian state of Maharashtra.
The company is also exploring the possibility of opening a new manufacturing facility, though final decisions regarding location and investment have not yet been made.
Electric Vehicle Strategy Gaining Traction
Mahindra launched its new range of electric SUVs—BE.6 and XUV.e9—in November 2024. Deliveries began in March 2025, and the company has so far supplied 6,300 units. The company aims to expand its presence in India’s growing electric vehicle (EV) market, where competition is intensifying amid increased government incentives and rising consumer interest.
Context: Mahindra’s Role in India’s Automotive Landscape
Founded in 1945, Mahindra & Mahindra is part of the broader Mahindra Group, a multinational conglomerate with operations in over 100 countries. The company holds market leadership in India in several automotive and agricultural segments. In addition to being the world’s largest tractor manufacturer by volume, Mahindra is a leading name in utility vehicles, financial services, and renewable energy solutions.
The group has prioritised innovation and capital efficiency in recent years, allowing it to generate ₹10,000 crore in cash during FY25. This strong financial position supports ongoing investments in new technologies and infrastructure to bolster future growth.
Looking Ahead
Mahindra & Mahindra's focus on SUVs and electric vehicles reflects broader industry trends in India and globally, where consumers are increasingly choosing feature-rich, fuel-efficient models. With a pipeline of new product launches and expanded manufacturing capacity, the company aims to strengthen its position in both traditional and electric mobility segments during FY26.
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