M&M Q4 Profit Surges 42% to ₹4,668 Crore, Dividend Raised 30%

Key facts

• M&M's consolidated net profit for Q4 FY26 rose 42% year-on-year to ₹4,668 crore.
• Revenue from operations in Q4 FY26 increased 29% to ₹54,982 crore.
• Full-year net profit for FY26 grew 32% to ₹17,099 crore, with operating revenue up 25% to ₹198,639 crore.
• EBITDA for Q4 FY26 rose 4.98% to ₹5,509 crore from ₹4,219 crore in Q4 FY25.
• The board recommended a final dividend of ₹33 per share, a 30% increase from the previous year.
• EVs accounted for 9.6% of auto segment sales, putting pressure on margins.
• The company expects its SUV business to grow in the mid-to-high teens.
• Growth Gems portfolio delivered a 50% growth in Profit After Tax.

Lede: Record Quarter Caps a Strong Year

Mahindra & Mahindra (M&M) reported a 42% surge in consolidated net profit for the fourth quarter of fiscal year 2026, reaching ₹4,668 crore, as the automaker's auto and farm divisions maintained market leadership. The results, announced on Wednesday, underscore a year of robust demand for its SUVs and tractors, even as the company navigates margin pressures from its growing electric vehicle lineup. Revenue from operations climbed 29% year-on-year to ₹54,982 crore, while EBITDA rose 4.98% to ₹5,509 crore. The strong quarterly performance capped a full fiscal year in which net profit increased 32% to ₹17,099 crore and operating revenue grew 25% to ₹198,639 crore.

Auto and Farm Segments Lead Growth

The company's auto and farm sectors drove the top-line expansion, with a 27% rise in revenue and a 25% increase in profits. M&M's SUV business, which includes the popular Thar model, is expected to grow in the mid-to-high teens, according to management. The farm equipment division also posted solid gains, benefiting from a favorable monsoon and government support for rural incomes. Financial services contributed a 12% growth in Assets Under Management (AUM), while the Growth Gems portfolio — a collection of high-potential subsidiaries — delivered a 50% jump in Profit After Tax. These diversified revenue streams helped cushion the impact of rising input costs and competitive pressures.

EV Share Hits 9.6%, Pressuring Margins

In the auto segment, electric vehicles accounted for 9.6% of sales, up from 8.2% a year earlier. The shift toward EVs, while strategic, has weighed on margins due to higher development costs and lower initial volumes. The company has not disclosed specific margin figures for the quarter, but analysts note that the EV mix is a key factor in the sequential EBITDA margin decline. M&M has been investing heavily in its electric SUV platform, with plans to launch multiple models over the next two years. The Thar maker sees the EV transition as essential to maintaining its competitive edge, even as it manages the short-term profitability trade-off.

Dividend Hiked 30% to ₹33 Per Share

Reflecting confidence in its financial position, M&M's board recommended a final dividend of ₹33 per equity share of face value ₹5 each for FY26, a 30% increase from the previous year's ₹25.40 per share. The dividend payout underscores the company's commitment to shareholder returns amid strong cash generation. The full-year dividend, including interim payouts, now totals ₹45 per share, up from ₹35.40 in FY25. The record date for the final dividend will be announced in due course.

Outlook: SUV Growth and EV Ambitions

Management expects the SUV business to continue growing in the mid-to-high teens, driven by new model launches and strong demand in both domestic and export markets. The company's order book for internal combustion engine SUVs remains robust, while the EV pipeline is being ramped up gradually. Analysts remain broadly bullish on M&M, citing its leadership in the SUV segment and its early mover advantage in EVs. However, they caution that margin pressures from the EV transition and rising competition from other automakers could temper near-term earnings growth. The company's ability to scale EV production while maintaining profitability will be a key focus for investors in the coming quarters.

Full-Year Financials Confirm Momentum

For the full fiscal year 2026, M&M's consolidated net profit rose 32% to ₹17,099 crore, while operating revenue increased 25% to ₹198,639 crore. The auto and farm segments together accounted for the bulk of the revenue, with financial services and Growth Gems providing additional support. The company ended the year with a strong balance sheet, enabling the dividend hike and continued investment in new technologies. M&M's market capitalization has risen over 40% in the past 12 months, reflecting investor confidence in its growth trajectory.

The bottom line

• M&M's Q4 net profit jumped 42% to ₹4,668 crore, with full-year profit up 32% to ₹17,099 crore.
• Revenue from operations rose 29% in Q4 and 25% for the full year, driven by auto and farm segments.
• EVs now account for 9.6% of auto sales, pressuring margins despite strong overall demand.
• The board raised the final dividend by 30% to ₹33 per share, signaling confidence in cash flows.
• Management expects SUV business growth in the mid-to-high teens, supported by new models.
• The Growth Gems portfolio delivered 50% PAT growth, diversifying M&M's earnings base.