Mahindra & Mahindra (M&M) reported a 13% rise in profit for the September quarter, and the number beat estimates, according to NDTV Profit. But its EBITDA margin fell to 11.6% because raw materials cost more.
The automotive business led the growth, with revenue up 36%. Farm equipment revenue grew just 1%. So the quarter shows fast growth on one side and cost pressure on the other.
What happened
On 5 November 2026, the live results coverage of The Hindu BusinessLine listed M&M among companies whose Q2 profit went up. NDTV Profit gave more details.
Q2 means the second quarter of the financial year 2026-27. In India, the financial year starts on 1 April. So Q2 covers July, August and September.
According to NDTV Profit, profit rose 13% and came in above estimates. An estimate is the figure analysts expect before the results come out. The reports did not give profit or total revenue in rupees. Those figures will be in the company's filing on the BSE or NSE website.
The numbers
| Item | Change or level | What it shows |
|---|---|---|
| Profit | Up 13% | Better than estimates |
| Automotive revenue | Up 36% | Main driver of revenue growth |
| Farm equipment revenue | Up 1% | Almost flat |
| EBITDA margin | 11.6% | Down 280 basis points |
The table shows that growth came mostly from vehicles, while the margin got smaller. All figures in it are from NDTV Profit.
How to read these numbers
Profit can rise while margin falls. Profit is an amount in rupees. Margin is a share of sales.
EBITDA stands for earnings before interest, tax, depreciation and amortisation. Simply put, it is the profit from daily business before loan costs, taxes and the wear of machines are taken out. EBITDA margin is EBITDA as a percentage of revenue.
Here is a simple example. A company sells goods worth ₹100 and has an 11.6% EBITDA margin. It keeps ₹11.60 as operating profit.
NDTV Profit said the margin fell by 280 basis points. One basis point is one-hundredth of a percentage point, so 280 basis points equal 2.8 percentage points. By our calculation, the margin was about 14.4% in the period it is compared with. In the ₹100 example, that means ₹14.40 earlier against ₹11.60 now.
So how can profit still rise? When sales grow, a smaller slice of a bigger pie can still be a bigger piece. Profit also depends on items below EBITDA, such as interest and tax. The reports did not break these down.
NDTV Profit linked the margin fall to higher commodity costs. Commodities are basic raw materials, such as metals, rubber and plastics. When they cost more, each product costs more to make.
Vehicles grew fast, farm machines did not
A segment is a part of a company's business that is reported on its own. M&M's two main segments moved very differently this quarter.
NDTV Profit said the automotive business drove revenue growth, with a 36% increase. Farm equipment revenue rose just 1%.
This matters because the company is now leaning more on one business. If vehicle demand stays strong, that helps. If it slows, the farm side gives little support right now. The reports did not explain why farm revenue grew so slowly, so the company's own comments will be worth reading.
Why it matters to a common investor
For a small investor, the headline profit number is only part of the story. M&M's profit beat estimates, which is good news for the company. But the lower margin shows that costs took a bigger share of each rupee of sales.
When you read any result, look at sales growth, profit growth and margin together. Our results section explains other companies' numbers in the same simple way.
Also, "beat estimates" only compares the result with what analysts expected. It does not tell you where the share price will go. Share prices also depend on the outlook, costs and the wider market.
Other companies reporting the same day
M&M was not alone. According to The Hindu BusinessLine, Bharat Forge, LG Electronics, Uno Minda and Amagi Media also reported higher Q2 profit on 5 November.
The same coverage said Bharti Airtel, LIC, Titan, ONGC, Samvardhana, Britannia, Prestige Estates, Fortis Healthcare and Abbott were due to announce results. You can read what brokerages expected from Bharti Airtel before its numbers came out.
Risks to keep in mind
- Raw material costs: If commodity prices stay high, the margin may stay under pressure. It has already fallen 280 basis points.
- Slow farm business: Farm equipment revenue rose only 1%. A long slowdown here would put more weight on vehicles.
- Depending on one segment: Fast growth in the automotive business carried the quarter. That pace may not repeat every quarter.
- Missing details: The reports did not give profit and revenue in rupees. Check the full filing before drawing any conclusion.
- One quarter only: A single quarter does not show the long-term trend of a company.
What to watch next
First, read the full results on the BSE or NSE website. After that, keep an eye on these points:
- Whether commodity costs ease and the margin moves back up.
- Whether farm equipment revenue picks up in the coming quarters.
- Whether the automotive business can keep growing quickly.
- What the company's managers say about costs, prices and demand.
For more on India's car industry, see our story on Mercedes-Benz's latest India plans.
Words explained
- Quarter (Q2): A three-month period of a company's financial year. In India, Q2 covers July to September.
- Estimates: The numbers analysts expect a company to report. "Beating estimates" means the actual result was better.
- EBITDA: Earnings before interest, tax, depreciation and amortisation. It is the profit from daily business before these costs are taken out.
- Margin: The part of sales a company keeps as profit, shown as a percentage. An 11.6% margin means ₹11.60 kept from every ₹100 of sales.
- Basis point: One-hundredth of a percentage point. So 100 basis points equal 1 percentage point.
- Commodity costs: The price of basic raw materials such as metals and rubber. When they rise, making goods costs more.
- Segment: A part of a company's business that is reported on its own, such as M&M's automotive or farm equipment business.
Sources: NDTV Profit, The Hindu BusinessLine.
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