Automobile giant Mahindra & Mahindra (M&M) will announce its December quarter of financial year 2025 (Q3FY25) results on Friday, February 7, 2025.
M&M is expected to report strong performance for Q3FY25, driven by solid growth across its automotive and tractor segments.
Analysts predict a revenue increase of approximately 21 per cent Y-o-Y, with a healthy rise in tractor revenues (up 26 per cent Y-o-Y) and automotive sales (up 19 per cent Y-o-Y).
Earnings before interest, tax, depreciation and amortisation (Ebitda) is expected to grow around 39 per cent, benefiting from a better product mix and improved operating efficiencies. Positive responses to new model launches and higher tractor volumes are likely to contribute to margin expansion.
Overall, M&M is on track to deliver a strong quarter with improved profitability across its business segments.
On the bourses, at 1:50 PM, M&M share price was trading 1.27 per cent higher at Rs 3,137.20 per share. In comparison, BSE Sensex was trading 0.49 per cent lower at 77,889.05.
Given this, here’s what top brokerage expect from M&M in Q3 results:
Nomura
Analysts at Nomura forecast a 21 per cent Y-o-Y increase in M&M’s revenue for Q3FY25, driven by a 17 per cent Y-o-Y growth in automotive volumes and a 20 per cent Y-o-Y rise in tractor volumes.
Ebitda is expected to rise 38 per cent Y-o-Y to Rs 4,478.7 crore, while PAT is predicted at Rs 2,879 crore, up 17 per cent Y-o-Y.
Ebitda margin is expected to increase by 26bps Q-o-Q to 14.6 per cent. The overall revenue projection is Rs 30,689.3 crore.
Elara Capital
Elara Capital analysts expect Mahindra & Mahindra (M&M) to report a revenue of Rs 30,801.4 crore for Q3FY25, reflecting a 21.8 per cent Y-o-Y growth. The growth is likely driven by strong responses to new model launches and an improved product mix, with tractor sales making up 36 per cent of total volume.
Ebitda is forecasted at Rs 4,497 crore, up 39 per cent Y-o-Y, while recurring PAT is estimated at Rs 3,129.4 crore, up 27.5 per cent Y-o-Y.
Kotak Institutional Equities
Kotak Institutional Equities estimates M&M’s revenues to rise 21 per cent Y-o-Y in Q3FY25, driven by a 26 per cent Y-o-Y growth in the tractor segment (with a 20 per cent increase in volumes) and a 19 per cent Y-o-Y growth in the automotive segment, fuelled by a 17 per cent increase in volumes.
Ebitda margin is expected to improve 200bps Y-o-Y due to a richer segment mix and operating leverage benefits. Automotive Ebit margin is estimated at 9 per cent, while the tractor segment Ebit margin is predicted to improve by 310bps Y-o-Y to 18.6 per cent.
The expected revenue is Rs 30,519.7 crore, Ebitda is Rs 4,511.4 crore (up 39.4 per cent Y-o-Y), and adjusted PAT is Rs 3,248.5 crore, up 32.4 per cent Y-o-Y.
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